TaxTMI 
TaxTMI 
TaxTMI 
Clarification Required - Timing of TRC, Form 10F, No PE Declaration and Form 15CA/15CB for TDS on Non-Resident Payments
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....larification Required - Timing of TRC, Form 10F, No PE Declaration and Form 15CA/15CB for TDS on Non-Resident Payments<br> Query (Issue) Started By: - Lalitha Krishnamurthy Dated:- 27-2-2026 Income Tax<br>Income Tax<br>We seek clarification regarding the requirement and timing of obtaining tax documents from a foreign vendor while making payment for services and issuing Form 15CA/15CB. In our u....
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....nderstanding, under Section 195 of the Income Tax Act, TDS on payments to non-residents is required to be deducted at the time of credit or payment, whichever is earlier. If the non-resident is eligible for DTAA benefits, a lower TDS rate may be applied upon receipt of the following documents: Tax Residency Certificate (TRC) Form 10F No Permanent Establishment (No PE) Declaration Our q....
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....uery concerns the stage at which these documents must be obtained - whether at the time of booking the expense (credit), at the time of payment and issuance of Form 15CA/15CB, or both. Illustration: A foreign vendor issued an invoice in FY 2023-24. At that time, TRC, Form 10F, and No PE Declaration were provided. Based on these documents, DTAA benefit was applied and TDS was deducted at the ....
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....concessional rate at the time of booking the expense (credit) in FY 2023-24. The TDS was deposited and the return filed accordingly. However, actual payment is being made in FY 2025-26. In FY 2025-26, the vendor has not provided updated TRC, Form 10F, or No PE Declaration. Our specific questions are: • Are fresh tax documents required at the time of payment in FY 2025-26, eve....
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....n though TDS was already deducted at the time of credit in FY 2023-24? • If updated documents are not provided, is additional TDS required at domestic rates? • Does the TDS rate change at the time of payment? • Is revision of the earlier TDS return required? • Are TRC, Form 10F, and No PE declarations financial year-specific and requi....
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....red separately for each year of payment and Form 15CA/15CB issuance? We request your detailed clarification on the above to ensure proper compliance and avoid any future tax exposure, interest, or disallowance. Looking forward to your guidance.<br> Discussion Forum - Knowledge Sharing ....