WE HAVE PAID TECHNICAL FEES TO A SRILASNKAN COMANY. TAX WAS DEDUCT @ 10% BY US ON THE BASIS OF RATES AS MENTIONED IN ADT AGREEMENT WITH RESPECTIVE CONTRY. NOW THEY ARE DEMANDING TDS CERTIFICATE . BUT THEY DON'T HAVE PAN NO IN INDIA . SO ACCORDING TO MY KNOWLEDGE TDS CERTIFICATE WILL NOT SERVE THEIR ANY PURPOSE ?
PLS GIVE YOUR RESPECTIVE VIEWS ON THE SAME
prepare TDS certificate manullay with TDS acknowledgennt no
but first of all whether you file form 27Q under sec 195
THANK U SIR
BUT MY QUESTION TO U IS THIS CERTIFICATE GO TO SERVE THERE PURPOSE AT ALL.
tnx vajli, but let me know how can they deduct tax without pan no, and on which pan no they will pay amount to the IT dept,
I think they are demanding TDS Certificate for proof.
It is also possible that, Srilankan Taxation rules on this type of receipts may require TDS certificate to get some tax exemptions....
@ Siva Prasad
Foreign companies, who engages in financial tranasactions & liable for tax, should also get a PAN irrespective of fact whether they have permanent establishment or not in India.
Please read this article for more clarity
https://taxguru.in/income-tax/tds-rate-us-206aa-if-no-pan-on-payment-to-non-residents.html
Dear Suman
Since the Sri Lankan Company does not have a PAN is India, Section 206AA of the Income Tax Act, 1961 is applicable (Introduced with effect from April 01, 2004) according to which TDS is to be deducted at the higher of the following rates: -
1. at the rate specified in the relevant provision of this Act; or
2. at the rate or rates in force; or
3. at the rate of twenty per cent.
In your case, TDS was supposed to be deducted at 20.6% (including surcharge) under Section 195 and Return is to be filed wherein it is mentioned that PAN is not available.
Once the return is filed with the NSDL after 15 days you can issue Form 16A from the NSDL website itself.
The Sri Lankan Company will utilise the credit available as per the tax laws of Sri Lanka. Indian Company need not bother.
CAclubindia
