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TDS on payment to foreign company

Lila (Job) (491 Points)

28 February 2021

We are deducting TDS on payment made to a foreign company. How do we file TDS return as company does not have PAN in India. What PAN is to be mentioned in TDS return?

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CA. Sourav Sarkar (Chartered Accountant ) (24583 Points)
Replied 28 February 2021

Section 206AA was introduced from FY 2010-11. Section 206AA requires every taxpayer who receives taxable income to furnish their PAN to the payer of such income. This applies to both the resident as well as non-resident recipients. The payments in case of residents would include salary, rent, professional receipts, contractual receipts and so on. In the case of non-resident, these would include all receipts that are taxable in India.

If PAN is not available then 20% tds will be deducted

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