Follow Us :

Article explains Consequence on non-furnishing of PAN by non-resident to Deductor who is required to deduct or withhold tax on income of non-resident. Article explains in such cases Rate of Tax Deduction, Rate in case of interest, royalty, fees for technical services, dividend and payments on transfer of any capital assets, TDS rate if Payment is subject to TDS u/s 194LC (interest on long-term bonds). If further explains its impact on application for lower withholding certificate.

Particulars PAN furnished by non-resident Non-furnishing of PAN by non-resident
Rate of TDS Tax shall be deducted at the rate in force. TDS rate should be higher of following:

1.  at the rate or rates in force; or

2. at the rate of 20%

Rate in case of interest, royalty, fees for technical services, dividend and payments on transfer of any capital assets Rate in force.

a. Royalty–10% / 15%

b. FTS – 10%/ 15%

c. Dividend – 10%

d. Capital Gain – 10%/ 20%

Rate in force, subject to furnishing of following details/ documents:

  • Name, e-mail id, contact number;
  • Address in the country of which the Deductee is a resident;
  • Tax residency certificate;
  • Tax Identification Number of the Deductee in the country of his residence.
Payment is subject to TDS u/s 194LC (interest on long-term bonds) Rate as per section 194LC. Rate as per section 194LC (No adverse consequences in such case).
Lower withholding certificate Deductee can apply by quoting the PAN. Cannot obtain lower TDS certificate without quoting PAN.
Consequence of Non filling of ITR for 2 consecutive years Not applicable in case of non-resident. Not applicable in case of non-resident.

Author Bio

Ocean Tax Square is a consulting firm that provides a wide range of services to its clients, including direct taxation, GST, compliances, providing exemplary legal solutions, regulatory, financial and business advisory, accounting, payroll and more. Our goal is to provide our clients with custom- View Full Profile

My Published Posts

Summary of TDS under section 194R and FAQ’s by CBDT View More Published Posts

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Post by Date
April 2024
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930