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

AI Summary

Company Queries TDS Certificate Issuance for Foreign Payments; Advised to Use Form 16A in INR. A private limited company inquired about issuing TDS certificates for payments made to foreign companies for managerial and technical services. They deducted TDS at 20% for a recipient without a PAN and at 10% under a DTAA rate. The company sought advice on whether to issue the TDS certificate in INR or the remittance currency and how foreign recipients can claim tax credits. Respondents advised issuing Form 16A in INR, with one suggesting the non-resident should apply for a PAN in India to claim any refund, while another stated that claiming credit is not the issuer's concern.