TMI BlogAny payment to non-resident if taxable in India, TDS will be deducted @20% in absence of PANX X X X Extracts X X X X X X X X Extracts X X X X ..... Any payment to non-resident if taxable in India, TDS will be deducted @20% in absence of PAN - Commentaries / Editorials Dated:- 2-1-2016 - News - TDS u/s 195 - payment to non-resident - TDS either @ 10% or @ 20% - assessee in default - assessee has not produced the Permanent Account Number of the recipients for deducting tax @ 10% The ld. Representative submitted that the non-resident mean ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s a person who is not a resident in India. In this case, admittedly, the recipients are not residents in India, therefore, there is no obligation to obtain Permanent Account Number u/s 139A of the Act. Since there was no obligation to obtain Permanent Account Number, according to the ld. Representative, sec. 206AA of the Act is not applicable. Held that:- If the recipient has no taxable income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in India then the question of deduction of tax may not arise for the year under consideration. In that case, there is no question of deduction of tax either @ 10% or @ 20%. When the income received by a resident or non-resident, as the case may be, is taxable in India, tax has to be deducted under the provisions of Chapter XVII of the Act. Sec. 206AA of the Act also falls in Chapter XVII. In view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the specific provision in sec. 206AA which provides for deduction of tax @ 20% wherever the recipient failed to furnish the Permanent Account Number, this Tribunal is of the considered opinion that in view of the language used by the Parliament notwithstanding anything contained in any other provisions of this Act , sec.206AA would override the other provisions of the Income-tax Act, including ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sec.139A of the Act. Since admittedly the amount received by the recipient is taxable in India, this Tribunal is of the considered opinion that in the absence of any Permanent Account Number, tax has to be necessarily deducted @ 20%. Therefore, the CIT(A) has rightly confirmed the order of the Assessing Officer treating the assessee as an assessee in default See:- M/s Prashanth Fertili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty Research Centre Pvt. Ltd Versus The Income Tax Officer International taxation II (1) , Chennai - 2016 (1) TMI 73 - ITAT CHENNAI - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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