Tds return - without PAN

[Gopal Kumar]

We have TDS on a consultancy bil, but the deductee is in out of india and does not have a PAN, further he does not wish to avail of any tax benefit. In this case how we file the TDS return and what is the cosequence if we do not file the TDS return after deposting of tax.

[Mukesh Kumar]

If you vish that foreign party should get the credit of TDS and claim the benefit into their income tax assessment of that country (and you may negotiate the price of service on that basis), you may advise that party to obtain a PAN in India. But, if is not willing to obtain PAN, you should fill the column blank and upload the Form 17 and TDS returns. System should accept the same.

[Gopal Kumar]

Systen does not accept the return without quoting a valid PAN no. What to do?

AI Summary

TDS return without PAN: advise foreign deductee to obtain PAN for credit, otherwise file returns and declaration. If the foreign deductee lacks PAN and will not obtain one, the payer may leave the PAN field blank and submit the TDS return together with the required declaration form so withholding is reported and deposited; alternatively, advise the deductee to obtain a PAN if they should receive credit for the tax. Note that filing systems may validate PAN and reject returns with a blank or invalid PAN despite guidance that the system should accept them.