E TDS Return

[Tax DEPTT]

Our company is importing services from a company from singapore which is covered under DTAA. The rate of tds under DTAA is 10%. We are making payment of TDS on their behalf. As the company is a foreign company, No PAN is available. However form 27Q is not supporting the same. Even our company PAN is not being taken in the online form as the PAN of the company and deductee cannot be the same.

[Rama Krishana]

Why you are trying to put your own PAN instead of deductee? It will be amount to offence and you may face consequences. You should take the particulars of the foreign company and authorization letter and apply for PAN on behalf of such company.

AI Summary

TDS on cross-border services requires the deductee's PAN; the payer must not use its own PAN and should obtain the deductee PAN. Where a DTAA covered foreign supplier lacks a PAN, the withholding agent must not use its own PAN in deductee fields; Form 27Q requires the deductee's PAN. The withholding agent should collect the foreign company's particulars and an authorization letter and apply for the foreign entity's PAN before filing, because substituting the payer's PAN may amount to an offence.