Rate for DTA

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..... Rate for DTA
Query (Issue) Started By: - KRISHNAMURTHY S P Dated:- 10-9-2009 Last Reply Date:- 1-5-2010 Income Tax
Got 2 Replies
Income Tax
Newly inserted Section 206AA requires every payee of sum which attract TDS, furnish PAN. Is it applicable to Non Resident Payee also. Suppose DTA rates is less than 20%, whether DTA rate Prevails or 20%? Reply By Surender Gupta: The Reply: Sect .....

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..... ion 90 of the Income Tax Act, 1961 provides provision relating to DTAA and sub-section (2) says that assessee is entitled to avail the most beneficial provisions from Income Tax Act or DTAA. But, the provisions of section 90 is not an overriding section like section 206AA. Since section 206AA is an overriding section and conditional one. The provisions of section 206AA are applicable only if the r .....

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..... eceipient fails to provide the PAN number. However, I think that it is matter of discussion that what is the scope of section 206AA. Once interpretation is that the rates prescribed in the Income Tax or Finance Act for the purpose of TDS shall be increased to 20% if the rate of TDS is lower than 20%. After deciding such rate as per the provisions of Income Tax and application of section 206AA, the .....

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..... provisions of Section 90 would be applied and the minimum of two rates i.e. DTAA rate and 20% rate would be applied. Reply By Anuj Gupta: The Reply: Yes provisions of section 206AA are applicable to non resident payees also. The rates in respect of INTEREST,ROYALTY,Fee for Technical Services (as per provisions of Income Tax Act) shall be taxable at the rate of 21.115%. Also the chargeability und .....

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..... er the provisions of Income Tax Act or DTAA shall be needed to be checked before coming to question of 206AA
Discussion Forum - Knowledge Sharing .....

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