TDS FOR NON RESIDENT.

NON RESIDENT DON'T HAVE PAN NUMBER


IF WE DEDUCT TDS HOW TO REMIT TO THEM( LIKE TO WHICH PAN ) WILL THEY SHOW INCOME IN INDIA ?
Replies (4)
Quick Summary
This discussion addresses the complexities of deducting Tax Deducted at Source (TDS) for non-residents who do not possess an Indian PAN. It clarifies that the Indian deductor's responsibility is to deduct and remit the TDS, even if the non-resident lacks a PAN, by indicating 'PAN not Available' on TDS returns. The non-resident can later claim refunds using a Transaction Based Report if they file an Indian tax return. Crucially, TDS is only applicable if the payment is taxable in India under the Income Tax Act, and Double Taxation Avoidance Agreements (DTAAs) should be reviewed, as they are not universally applicable.

Over which transaction TDS need to be deducted?

Tds for non resident hv no pan.If we deduct tds @ 20%

As I understand, TDS return will simply show “PAN not Available”.   Whether and how such non resident will show income in India is not something to be concerned about as far as the person deducting tax is concerned and once tax is deducted as required under s.195 or any other relevant section, compliance part for Indian Tax payer is complete.

Non resident could subsequently, if it feels that it is entitled to refund of amount and wishes to file return for that purpose, it could rely upon Transaction Based Report(TBR) for the purpose of claiming refund. 

You also need to understand however that tax is to be deducted against payment to a Non resident only if the amount being paid is chargeable to tax under ITA, 1961 and merely because NR may not have PAN will not necessarily require deduction of tax and DTAA/Tax Treaty between India and country of Non Resident may be carefully examined for withholding tax obligations.

Please consider this for broader understanding only.

DTAA AGREEMENT IS NOT APPLICABLE FOR ALL COUNTRIES. INDIA DOES NOT HV SUCH AGREEMENTS FOR ALL SUCH COUNTRIES.

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