https://www.taxtmi.com/caselaws?id=343571 Section 206AA does not require deduction of tax at 20% from payments to non-residents where the applicable DTAA provides a lower rate and section 90(2) makes the treaty more beneficial. The Tribunal applied the Special Bench view that tax deducted under section 195 must follow the treaty rate for non-resident recipients, and that section 206AA is only a machinery provision that cannot override the beneficial treaty framework. It also noted that non-residents are not required to furnish PAN in the same manner as residents, and later PAN furnishing by some deductees supported reduction of the demand to that extent. The demand based on the higher rate was therefore not sustainable. en-us Fri, 26 May 2017 00:00:00 +0530 Sun, 28 May 2017 18:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=343571 Section 206AA does not require deduction of tax at 20% from payments to non-residents where the applicable DTAA provides a lower rate and section 90(2) makes the treaty more beneficial. The Tribunal applied the Special Bench view that tax deducted under section 195 must follow the treaty rate for non-resident recipients, and that section 206AA is only a machinery provision that cannot override the beneficial treaty framework. It also noted that non-residents are not required to furnish PAN in the same manner as residents, and later PAN furnishing by some deductees supported reduction of the demand to that extent. The demand based on the higher rate was therefore not sustainable. Case-Laws Income Tax Fri, 26 May 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=343571