https://www.taxtmi.com/caselaws?id=359161 For payments to non-residents, the DTAA rate prevails where it is more beneficial under section 90(2), and section 206AA cannot override that treaty entitlement by forcing deduction at 20%. The withholding obligation under section 195 applies only to sums chargeable to tax, so the rate of deduction must follow the applicable treaty provisions when they are more favourable than domestic law. On that basis, the PAN-related default rate under section 206AA was held inapplicable, and tax could be deducted at the DTAA rate. en-us Mon, 02 Apr 2018 00:00:00 +0530 Wed, 25 Apr 2018 06:17:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=359161 For payments to non-residents, the DTAA rate prevails where it is more beneficial under section 90(2), and section 206AA cannot override that treaty entitlement by forcing deduction at 20%. The withholding obligation under section 195 applies only to sums chargeable to tax, so the rate of deduction must follow the applicable treaty provisions when they are more favourable than domestic law. On that basis, the PAN-related default rate under section 206AA was held inapplicable, and tax could be deducted at the DTAA rate. Case-Laws Income Tax Mon, 02 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=359161