FIEO/PUB/PR /41/15 – September 15, 2015
Waiver of TDS in the course of export related payments made to non-residents in view of contradictory decisions of Tribunals could add to the ease of doing business for exporters: S C Ralhan, President, FIEO
Shri SC Ralhan, President, FIEO while commenting on the world bank and DIPP reports on Ease of doing business both at the country level and state level respectively, stated that facilitating measures have been introduced for creating a more proactive and congenial environment for businesses within and outside and for the exports and imports in particular in the recent past such as reduction/merging of exports/imports documents besides advance rulings which although started in 2002 now includes all resident firms w.e.f. 1.3.2015 and others within the ambit of e-connectivity of stakeholders such as e-Registration, e- filing of documents, and even e-appeals where the Customs Excise and Service Tax Appellate Tribunal (CESTAT), risk management systems(ACP); including self assessment etc.
However issues like the inclusion of section 206 AA by Finance Act 2009 w.e.f 1.4.2010, which includes non obstante clause where payments made to non residents in course of exports need TDS deductions compelling non-residents to acquire PAN numbers for the same need to be re-considered in view of the judgement of Pune Bench of Tribunals in the Serum Institute Case which states that section 206AA does not have an overriding effect and therefore rates as per DTAA is applicable.
FIEO chief stated that FIEO on its part has represented the matter to the CBDT appealed for exempting TDS from export related payments and a notification on the same is still awaited.