Non disclosure of pan - higher rates - DTAA applicability

[madhavvan n]

As per Section 206AA it is mandatory for Non residents to quote PAN does this cover all ( ie non resident indians, non resident companies and other non residents) If PAN is not quoted by Non resident then tds at higher of rates will have to be applied. If there is a DTAA with the country in which non resident is located and the rate as per DTAA is lower then which provision will prevail will DTAA prevail or rates as per Section 206AA will have to be applied. readers views are solicited

AI Summary

Debate on Section 206AA: Does it Override DTAA Benefits for Non-Residents Without PAN? Obtain PAN for TDS Clarity. A discussion on the applicability of Section 206AA of the Income Tax Act and its interaction with Double Taxation Avoidance Agreements (DTAA) raised concerns about whether non-residents must quote a Permanent Account Number (PAN) to avoid higher tax deduction at source (TDS) rates. Some contributors argued that DTAA rates should prevail if beneficial, while others highlighted Section 206AA's overriding nature, suggesting higher rates apply without a PAN. It was advised that obtaining a PAN is prudent for non-residents receiving income subject to TDS, and the taxability of income in India should be assessed under relevant sections.