TAX RESIDENCY CERTIFICATE, Income Tax

[PANKAJ GUPTA]

Dear Sir,

We (company) have made foreign payment for consultancy fees for market development in foreign to non resident company USA without deducting TDS (withholding tax) on the basis certificate taken from Chartered accountant in form no. 15 CB which was issued on the basis of declaration taken from non resident company that they have no PE in India and their profits are part of their business profit (under article 7 of USA DTAA).

As per new amendment in Income tax rules w.e.f. 01.04.2013, TRC is required to take advantage of DTAA.

In that case what will be for non deduction of TDS/ non deposit of tds without obtaining  TRC from non resident company, even we have taken undertaking and Form 15 CB.

I am awaiting for your reply.

Thanks & Regards

Pankaj Gupta

14/7 Mathura Road, Faridabad

​M-09212401641

Posts / Replies

[Gaurav Jain]

The same should be considered as an short deduction. Either arrange the TRC for that period where or pay tax  at the rate of the rate of 25 percent + SC+CESS as applicable.