tds deduction for non resident-reg

[Ramakrishnan Seshadri]

Dear Sir,

We want to pay to our non resident south korea payment relating design engineer support for a project. They do not have pan no in india. Whether we have to deduct 10.815% or 20.60%. Since there is a notification no.53/2016 dt.24/06/2016 says that if pan not available they can submit their Business registration number,email id etc if there is data.

Please experts give clarification in this issue. very urgent.

Thanks & Regards,

S.Ramakrishnan

[Ravi Kumar]

Cut flat 20% as per TDS rules.. where no pan card is provided ..... please remember this rule to all area of TDS & TCS

AI Summary

TDS deduction for nonresident payees in absence of PAN attracts higher withholding under tax rules; documentation alternatives may be considered. The payer asked whether reduced withholding or a higher rate applies where a nonresident South Korean design engineer lacks an Indian PAN and referenced government guidance on alternative identifiers; the reply advised that absence of PAN requires applying a higher flat TDS withholding under domestic rules and that this rule is to be remembered across TDS and TCS.