TaxTMI 
TaxTMI 
Please confirm the rate of TDS in case of foreign payment.
Rate as per Income Tax 10%
Rate as per DTAA 25%
Deductee has no PAN, so as per Section 206AA higher rate i.e. 20%
Thanks
Naveen Jain
TDS on foreign payment+ section 206AA
11 Feb 2013 
1 Reply 
4451 Views Asked by
Withholding tax: failure to furnish PAN triggers higher statutory withholding, overriding treaty benefit in practice.
Failure to furnish PAN triggers the higher withholding obligation under Section 206AA, so the deductor must apply the statutory higher rate for tax deduction at source even where a lower rate would otherwise be available under Section 90(2) as the beneficial rate. (AI Summary)
Failure to furnish PAN triggers the higher withholding obligation under Section 206AA, so the deductor must apply the statutory higher rate for tax deduction at source even where a lower rate would otherwise be available under Section 90(2) as the beneficial rate. (AI Summary)