Tax Residency Certificate & Tax Identification Number to claim relaxation from higher withholding tax

CBDT inserts new Rule 37BC providing for details to be submitted by a non-resident payee for relaxation from deduction of tax at higher rate u/s 206AA of the Income Tax Act.

New Rule provides that a non-resident deductee shall not be subject to higher tax u/s 206AA of the Act in respect of payments for INTEREST, ROYALTY, FEE FOR TECHNICAL SERVICES AND TRANSFER OF CAPITAL ASSETS, where the deductee furnishes the following details/documents to the deductor:-

1.  name, e-mail id, contact number;
2.  address in the country or specified territory outside India of which the deductee is a resident;
3.  a certificate of his being resident in any country or specified territory outside India from the Government of that        country or specified territory if the law of that country or specified territory provides for issuance of such certificate;
4.  Tax Identification Number of the deductee in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the deductee is identified by the Government of that country or the specified territory of which he claims to be a resident.

 Further, it has been specified that in case of deductee is covered under new rule 37BC, “PAN NOT AVAILABLE” should be mentioned in Form 27Q while filing the TDS return.

Subscribe to our newsletters