PAN Requirements for payments made to Non Resident

[CA Rachit Agarwal]

Comapany assessee is making payments to non-resident for sea freight in relation to export of goods for which TDS is NIL as per the DTA. Seafreight being from India to the country outside India.

Whether we have to obtain PAN of the non-resident to whom the payments are made for overseas freight?

[CAGOPALJI AGRAWAL]

If the payment is not liable for withholding tax, section 206AA is not applicable.

AI Summary

PAN requirement for non-resident payments: no PAN needed where payment attracts no withholding tax under section 206AA. Where payments to a non-resident for sea freight in connection with exports are not liable to withholding tax under the applicable Double Taxation Avoidance Agreement, the statutory provision invoked to require PAN details does not apply, and there is no obligation to obtain the non-resident's PAN in such circumstances.