TDS where no PAN - Sec 195

Nandakumar K Konkar (Partner) (246 Points)

16 October 2009  

Friends,

As per Sec 206AA of IT Act, TDS is to be deducted @ 20% where no PAN is furnished by deductee.

 

Does this apply to cases u/s 195, where the foreign entity does not have PAN?

Sec 195 cases are governed by Sec 115A, Sec 90 & DTAA. Sec 90 gives the assessee the option of deducting TDS at rates beneficial to deductee between 115A & DTAA. But the provisions of Sec 206AA seem to contradict Sec 90.

Pls advise.

 

N K Konkar