CBDT relaxes rules for TDS claims by non-resident firms

New Delhi, June 29 

Non-resident companies can now claim benefits of tax treaty by just providing personal details including, name, address and tax residency certificate, even without providing PAN.

The Central Board of Direct Taxes (CBDT) has come out with Rule 37BC, which gives relaxation to non-residents from furnishing PAN number in India while claiming TDS benefits.

Non-residents include foreign partnership, foreign body corporates, besides foreign companies.

It said in the absence of PAN, a non-resident can now provide the prescribed information and will not be subject to higher rate of withholding tax on payments made by Indian companies for interest, royalty, fees for technical services.

Non-residents can now claim the beneficial provisions of the tax treaty by providing personal details — name, email-id, address etc; Tax Residency Certificate (TRC) and Tax Identification Number (TIN) or any other Unique Identification number obtained in the country of residence.

“Non-residents can now take a sigh of relief, since the beneficial provision of the amended Section 206AA has become operational and treaty benefits shall not be denied by the tax authorities in the absence of PAN. Now a non-resident can claim the beneficial provisions of the tax treaty by providing his personal details,” said Rakesh Nangia, Managing partner, Nangia & Co. — PTI