Foreign Co. PAN Card Vs. Tax higher tax rate

This query is : Resolved

Suman Anand (Querist)
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05 May 2010 Dear Friends

I have two queries

1. If PAN card is not available for a foreign co with which we have DTA and under DTA only 10% TDS is required to be deducted whether tds will be payale at higher rate of 20% as per the new notification will asks for higher tds if PAN card is not available.

2. If a foreign Co. get PAN do it need to compulsariy file ITR in India.

3. If TDS is deducted from the income (royalty)earned by a foreign CO. in India with which we have DTA , do we need to file ITR in India.

Regards

Suman Anand

taxindiaconnect

taxindiaconnect (Expert)
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11 May 2010 The Provisions of section 206AA which has brought this change in the IT Act relating to PAN starts with a non obstente clause as following -

Nothwithstanding anything contained in any other provision of this Act ………..,

This mean the provision of section 206AA override all the provisions of the income tax Act 1961 including section 90 which provides that in case of a non resident the tax rates as per DTAA or IT Act which are more beneficial shall apply is also overridden. This in your query tax rate @ 20% shall apply.