Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Cbdt vide notification no. 53/2016 dated 24th june, 2016,

shiv shankar rawat student CMA (Manager) (263 Points)

29 June 2016

Want to clarification on above notification

Reply
Follow
Share

14 Replies

Harshit Kabra (INVESTOR) (Student CA final) (1113 Points)
Replied 29 June 2016

https://www.incometaxindia.gov.in/communications/notification/notification532016.pdf

u need to read this carefully.

Upgrade to CAclubindia Pro. Subscribe Now!

shiv shankar rawat student CMA (Manager) (263 Points)
Replied 29 June 2016

need you views

Harshit Kabra (INVESTOR) (Student CA final) (1113 Points)
Replied 29 June 2016

As per 206(AA) - ITS 206(AA) - As per Section 206AA, TDS is required to be deducted @ 30% if the deductee does not possess OR fails to furnish PAN (Permanent Account Number) on Sections 192/A , 194B/BB otherwise it will be 20%.

So, if the Deductee fails to furnish pan card but furnished -

(i) name, e-mail id, contact number;

(ii) address in the country or specified territory outside India of which the deductee is a resident;

(iii) a certificate of his being resident in any country or specified territory outside India from the Government of that country or specified territory if the law of that country or specified territory provides for issuance of such certificate;

(iv) Tax Identification Number of the deductee in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the deductee is identified by the Government of that country or the specified territory of which he claims to be a resident.

then no such higher rate is applicable for payments in the nature of interest, royalty, fees for technical services and payments on transfer of any capital asset,

shiv shankar rawat student CMA (Manager) (263 Points)
Replied 29 June 2016

Dear Harshit

In case of Non resident

Harshit Kabra (INVESTOR) (Student CA final) (1113 Points)
Replied 29 June 2016

dear frnd

sec 206(AA) is specifically for non resident not being a company or foreign company.

Upgrade to CAclubindia Pro. Subscribe Now!

Rakesh Gupta (Manager) (134 Points)
Replied 29 June 2016

Harshit,

So as per Notification, if Deductee provides required information i.e. Name, Email ID, Contact Number, TRC and Tax IdentificationNumber then rate of TDS will be 20% or 10% ?

shiv shankar rawat student CMA (Manager) (263 Points)
Replied 30 June 2016

Dear Freinds

Now is ok ., this notification is only for non resident , above requirement is only for avail tax benefits

Rakesh Gupta (Manager) (134 Points)
Replied 30 June 2016

This is only for Non-resident but my query was :

when non-resident provides all the information as mentioned in the Notification, then TDS Rate will be 10% or 20% ?

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 30 June 2016

Hello @ Rakesh

Provisions of Sec 206AA (TDS Rate 20%) shall not apply if the non-resident furnishes the above information...

Therefore it is a Relaxation to Non-residents TDS at higher rate of 20% will not be deducted....

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 30 June 2016

Hello Harshit
TDS rate is 30% in below case..
R u sure ???

Originally posted by : Harshit Kabra
	As per 206(AA) - ITS 206(AA) - As per Section 206AA, TDS is required to be deducted @ 30% if the deductee does not possess OR fails to furnish PAN (Permanent Account Number) on Sections 192/A , 194B/BB otherwise it will be 20%.

Upgrade to CAclubindia Pro. Subscribe Now!

Harshit Kabra (INVESTOR) (Student CA final) (1113 Points)
Replied 30 June 2016

Not 30% actually it will ,

at the higher of the following rates, namely:—

(i ) at the rate specified in the relevant provision of this Act; or

(ii ) at the rate or rates in force; or

(iii ) at the rate of twenty per cent.

Rakesh Gupta (Manager) (134 Points)
Replied 30 June 2016

Originally posted by : Vishal Goel
	Hello @ Rakesh Provisions of Sec 206AA (TDS Rate 20%) shall not apply if the non-resident furnishes the above information... Therefore it is a Relaxation to Non-residents TDS at higher rate of 20% will not be deducted....

Vishal,

Still confused. so as per the notification Section 206AA will not apply if Non-resident furnish the required information but what will be the rate ?

10% or something else ?

Further from which date it will be applicable ? From 1st April i.e. Q1 or from Q2 ?

shiv shankar rawat student CMA (Manager) (263 Points)
Replied 02 July 2016

Hi, Good evening to all

First I want to clear , Sec-206 AA is related NRI,

As per amendment and vide notification dt. 24th Jun_16, PAN is not require for NRI (individual)
TDS to be deduct @ 10% on above Sr no-1
TRC is required for NRI and it should be submit before submission any Invoice/payment untill TDS to consider @ 20 %

The above relaxtion is given by MOF under rule 37 BC.

Hope now all is clear .

Rakesh Gupta (Manager) (134 Points)
Replied 03 July 2016

Originally posted by : shiv shankar rawat student CMA
	Hi, Good evening to all First I want to clear , Sec-206 AA is related NRI, As per amendment and vide notification dt. 24th Jun_16, PAN is not require for NRI (individual) TDS to be deduct @ 10% on above Sr no-1 TRC is required for NRI and it should be submit before submission any Invoice/payment untill TDS to consider @ 20 % The above relaxtion is given by MOF under rule 37 BC. Hope now all is clear .

Please clarify on following point :

TRC is required for NRI and it should be submit before submission any Invoice/payment untill TDS to consider @ 20 %
In case NRI has provided TRC and all other relevant documents/information then it will be 10%.