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

AI Summary

Deduct 20% TDS for payments to non-resident without PAN, per TDS rules; alternatives like business registration not applicable. A user inquired about the appropriate tax deduction rate for payments to a non-resident design engineer from South Korea, who lacks a PAN in India. The concern was whether to deduct 10.815% or 20.60%, referencing a notification that allows submission of alternative identification like a business registration number. An expert responded, advising to deduct a flat rate of 20% as per TDS rules when no PAN is provided, emphasizing this rule applies across all TDS and TCS areas.