Respected Sirs,
We have to make a royalty payment to our Korean Company . On the Royalty payment there is liability to deduct TDS @ 20.6%.
Our Auditors suggested to get that PAN from the India Tax Authority to avail the beneficial tax rate.
Is it possible to obtain PAN for a Korean Company. If Yes, please let me know the procedure. After getting the PAN what section of TDS will be applicable on that Korean Company, how we issue the TDS Certificate and how that Korean Company will get the benefit of the TDS certificate.
Please clarify in details.
Best Regards.
Pradeep Kaushik
Korean Company Can Obtain PAN in India for Lower Withholding Tax Rate on Royalties Under Section 195 A query was raised regarding the withholding tax on a royalty payment to a Korean company, specifically about obtaining a Permanent Account Number (PAN) in India to benefit from a lower tax rate. An advisor confirmed that a Korean company can obtain a PAN by providing specific documentation, including registration certificates and approvals from competent authorities. Once the PAN is acquired, Tax Deducted at Source (TDS) will be deducted under section 195, and TDS certificates will be issued using Form 16A. The applicability of benefits depends on the Indo-Korean Double Taxation Avoidance Agreement (DTAA). (AI Summary)
TaxTMI 
TaxTMI 
