TDS on Foreign payment under DTAA if no PAN

[deepak gulati]

In case of Payments out of India, the Payee not having PAN. what will be the rate of TDS, 20.60% ( u/s 206 ) or DTAA rates.

[Reshma kochar]

Tax will be deducted as per Section 206AA,  as this section has an overriding effect on any other provisions of Income Tax Act, 1961.

Regards,

Reshma

[deepak gulati]

As per provision of Section 206AA the rate of TDS is @20%

[Reshma kochar]

Rate will be only 20% as no cess and surcharge will imposed u/s 206AA

 

Regards,

Reshma 

[Ramamohan achar]

But in my opinion the rates precribed in the DTAA cannot be overriden by other sections of the Income TAx act, since DTA overrides any provisions of the Income Tax Act and the rates to be applied is whichever is beneficial to the assessee. The DTA is an agreement signed with the other country and thus it will override the other sections.

Regards,

B.Prasanna

[Annappa Naik]

Hi,

I would request you to guys, could pls help me, we have received $17000 bill from data base compan, My request is is TDS will applicable On forign payment? if Yes with out PAN what is the percentage, with PAN number what is the percentage..

Annappa

[Reshma kochar]

your question is not clear... what is the exact transaction for $17000.

 

Regards,

Reshma

AI Summary

Debate on TDS Rate for Foreign Payments Without PAN: Section 206AA vs. DTAA Benefits A discussion on a tax forum addresses the rate of Tax Deducted at Source (TDS) on foreign payments when the payee does not have a Permanent Account Number (PAN). One participant asserts that under Section 206AA of the Income Tax Act, a 20% TDS rate applies, overriding other provisions. Another participant argues that Double Taxation Avoidance Agreements (DTAA) take precedence, suggesting the most beneficial rate to the assessee should apply. A query about the applicability of TDS on a $17,000 foreign payment is raised, with clarification sought on the exact transaction details.