Tds to non recident with out pan card

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2013 Hi every one,
I have small doubt relating we paid to expenses to nonrecident he did'nt have any pan card.So what is the treatement and what is the percentage of deduction of tds and which section to be applicable to previous year 2012-13.
So please reply any one some urgent.

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

10 October 2013 Tax at higher of the prescribed rate or 20 per cent will be deducted on all transactions liable to TDS, where the Permanent Account Number (PAN) of the deductee is not available. The law will also apply to all non-residents in respect of payments / remittances liable to TDS.

In such cases, in order to claim refund of excess TDS deposited, the non-residents will have to file their return of income in India. This will be a cumbersome procedure.

The procedure for obtaining PAN is simple, inexpensive and quick.

Non-residents are advised to obtain Permanent Account Number (PAN) before receiving any income from India.

regards,