TDS on royalty

This discussion clarifies the TDS rate applicable to royalty payments made to foreign companies. It addresses scenarios where a Tax Residency Certificate (TRC) and No Permanent Establishment (PE) certificate are available, but the foreign company lacks a PAN. While DTAA rates suggest 10%, the absence of a PAN complicates matters, potentially requiring a deduction at 30% plus cess as a safer approach, especially if specific government approvals or industrial policy alignments are not met.