In Recent Budget FM announced that in case of Withholding Tax under section 195, Tax deductions should be as per DTAA or Income Tax whichever is lower and further it was mentioned that Tax @ 10% (I.T. Tax Rate) wll be applicable on such DEductions in case Non Resident entity provides certain documents but no where it is mentioned what are the valid documents to deduct TDS @ 10% instead of 20% if Supplier is not having PAN, which in most of the Non Resident Entities where vendor is not having PAN isued by I.T. Department.
Please advise on what are the valid document for such rate of TDS.
As month end is approaching, we need to deduct tax accordingly and do not want to deduct wrong tax.
CAclubindia
