Non disclosure of pan - higher rates - DTAA applicability

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..... Non disclosure of pan - higher rates - DTAA applicability
Query (Issue) Started By: - madhavvan n Dated:- 27-1-2010 Last Reply Date:- 1-5-2010 Income Tax
Got 5 Replies
Income Tax
As per Section 206AA it is mandatory for Non residents to quote PAN does this cover all ( ie non resident indians, non resident companies and other non residents) If PAN is not quoted by Non resident then tds .....

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..... at higher of rates will have to be applied. If there is a DTAA with the country in which non resident is located and the rate as per DTAA is lower then which provision will prevail will DTAA prevail or rates as per Section 206AA will have to be applied. readers views are solicited Reply By JAYUL DANECHA: The Reply: IF RATES OF DTAA IS BENEFICIAL THEN RATES AS PER DTAA WILL PREVAIL AGST. IT RATES .....

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..... . Reply By Rama Krishana: The Reply: Yes, if non-resident is not having PAN, the higher rate of withholding tax shall be levied. Reply By Surender Gupta: The Reply: See the provisions of section 206AA are overriding over all other provisions of the Act. DTAA provision are effective under the provisions of section 90. But the provisions of section 206AA is having overriding effect over section 90 .....

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..... also. Reply By CA UMA KOTHARI: The Reply: Please see section 139A which says about persons who need to apply and obtain PAN. In case a person is not required to obtain PAN under S. 139A, it is is still advisable for him to obtain PAN, particularly when he is to receive any sum of money which is subject to TDS. otherwise the person paying such sum will be justified to deduct tax at higher rate as .....

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..... specified in S. 206AA. Reply By Anuj Gupta: The Reply: As per sec 206AA TDS at higher rate is deductible only if the income is chargeable to tax in India. Hence kindly put the sum that you are paying to foreign party under the lens of sec. 4,5,6 and 9 then you will get the answer.
Discussion Forum - Knowledge Sharing .....

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