09 September 2022
While filing form 10F for a foreign company, how to verify the form? is it mandatory to get PAN & DSC of director who is non resident? or is there any alternative to verify the form?
09 July 2024
Form 10F is a form that non-resident taxpayers use to declare certain details to claim benefits under the Double Taxation Avoidance Agreement (DTAA). Here's how you can verify Form 10F for a foreign company and what alternatives are available:
### Verification of Form 10F
1. **PAN Requirement**: - According to the Income Tax Act, non-residents must obtain a PAN (Permanent Account Number) if they wish to claim benefits under the DTAA. This applies to the foreign company or the non-resident director signing the form. - If the non-resident does not have a PAN, they should apply for one to ensure compliance and smooth processing.
2. **DSC (Digital Signature Certificate)**: - The form needs to be digitally signed if filed electronically. For a non-resident, obtaining a DSC might be challenging but is required for digital filing. - Ensure the DSC is registered with the Income Tax Department's e-filing portal.
### Alternatives to Verify the Form:
1. **Manual Submission**: - If obtaining a PAN or DSC for the non-resident director is impractical, the form can be manually signed and submitted to the tax authorities. However, this may involve additional steps such as attestation by an Indian consulate or notary in the foreign country.
2. **Authorized Signatory**: - The foreign company can appoint an authorized representative in India who has a PAN and DSC to file and verify Form 10F on their behalf. This authorized signatory should have a valid power of attorney or authorization letter from the foreign company.
3. **Tax Professional Assistance**: - Engage a tax professional or consultant who can guide you through the process and ensure that all requirements are met correctly. They can assist in obtaining a PAN and DSC, if necessary, or suggest other compliant methods.
### Detailed Steps for Verification:
1. **Obtain PAN**: - Apply for a PAN for the foreign company or the director through the NSDL or UTIITSL websites. This process involves submitting Form 49AA along with the necessary documents.
2. **Get a DSC**: - Apply for a DSC through certifying authorities like eMudhra, Sify, or others recognized by the Income Tax Department. Register the DSC on the e-filing portal.
3. **File Form 10F**: - Log in to the Income Tax e-filing portal using the credentials. - Navigate to the “e-File” section and select “Income Tax Forms.” - Choose Form 10F, fill in the required details, and sign it using the DSC.
4. **Manual Submission (if needed)**: - If opting for manual submission, fill in Form 10F, get it signed by the non-resident director, and then get it notarized or consularized. Submit the notarized form to the Indian tax authorities.
### Example of Authorization Letter for Authorized Signatory:
```plaintext [Company Letterhead]
[Date]
To, The Income Tax Department, [Address]
Subject: Authorization for Filing Form 10F
Dear Sir/Madam,
We, [Company Name], hereby authorize Mr./Ms. [Name of Authorized Signatory], holding PAN [PAN Number], to sign and file Form 10F on behalf of [Company Name].
Mr./Ms. [Name of Authorized Signatory] is hereby authorized to complete all formalities related to the filing and verification of Form 10F.
Thank you for your understanding and cooperation.
Sincerely,
[Signature of Non-resident Director] [Name of Non-resident Director] [Designation] [Company Name] ```
Ensure all documents are correctly prepared and authenticated to avoid any issues during submission. Consulting a tax professional for assistance in this process is highly advisable.
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