News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Direct Tax »
 File your belated ITR this month or pay higher penalty from January
 Income Tax Refund Alert! Waiting for ITR money? Here is the latest update
 Notification No. 86/ Central Board of Indirect Taxes and Customs
 Processing Of Income Tax Refund Returns Witnessed 20% Increase, Says CBDT
 Tax dept issues 21 mn tax refunds till Nov; ?1.46 lakh cr refunded
 CBDT notifies PAN-Aadhaar interchangeability
 NSE commodities segment gets recognition from CBDT, traders to get tax benefita
 CBDT retires 21 more tax officers in fifth crackdown on corruption
 BPO firms left in the lurch over input tax refund
 CBDT notifies TDS certificate to be issued by individuals deducting tax on payments to contractors
 CBDT notifies TDS certificate to be issued by individuals deducting tax on payments to contractors

CBDT eases TDS claims rules for non-resident investors
June, 30th 2016

Non-resident companies will now be able to claim benefits of tax treaty, only by providing personal details like name, address and tax residency certificate; they would not have to provide their permanent account numbers (PAN).

The Central Board of Direct Taxes (CBDT) has brought Rule 37BC, relaxing non-residents from furnishing PAN number in India in order to claim TDS benefits. These 'non-resident' entities include foreign partnership, foreign body corporate and foreign companies.

Earlier, non-residents who didn't provide PAN details were subject to higher rate of withholding tax on payments that Indian companies made in form of interest, royalty, fees for technical services.

Now, non-residents will be able to claim the beneficial provisions of the tax treaty by providing some details like name, email-id, address, Tax Residency Certificate (TRC) and Tax Identification Number (TIN) or any similar Unique Identification number that they must have obtained from their country of residence.

As per Section 206AA of IT Act, in absence of PAN, the payer was liable to withhold taxes at the rate of 20% or the rate of tax as per the Act or that as per tax treaty (whichever is higher) while making payment to a non-resident. This made PAN mandatory for every non-resident, which was not an easy process. The new rule removes this need for PAN details.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting