Form 16A to Non Resident

[Dipak Rajpara]

Dear All,

We are a Private limited Company and We have few transactions of Payment of Fees for Managerial & Technical Services to Companies out side india.

1. In One case we Deducted 20% TDS for Payment to person having no PAN in India.

2. In another case we deducted TDS of 10% (DTAA rate)

Now the Question is ISSUANCE of TDS Certificate to them.

Wehether this should be in INR or in the currency in which we remitted the funds?

If in INR  - How they in their country are eligible ot avail the credit of Tax Deducted in India?

Should the form be in the form of 16A itself and mentioning the Actual Tax in INR we deducted and deposited to the Government OR of the amount in INR arrieved at some other Exchange Rate on TDS in Foreign Currency?

Thanks i advance for help in this matter.

Regards,

Dipak

[Anil Mehta]

you have to issue Form 16A for this and non resident has to file the return by appling pan  here in india to claim the refund( if any) on this income.

[Anuj Gupta]

Claiming of credit is not your problem, issue Form 16A. in Rs. only.

AI Summary

TDS certificate issuance: Issue Form 16A in INR; non resident must obtain PAN to claim foreign tax credit. Payers must issue Form 16A to non residents for TDS on managerial and technical service fees, recording tax deducted and deposited in Indian rupees. The payer's obligation is to issue the certificate and report the INR amount; the non resident is responsible for obtaining a PAN, filing an Indian return if needed, and claiming any refund or foreign tax credit abroad.