9911796707
TMI Blog2016 (9) TMI 1264X X X X Extracts X X X X X X X X Extracts X X X X ..... permanent account number (PAN) from the Indian tax authorities - Indo German DTAA - Held that:- The provisions of the applicable tax treaty, in the present case, prescribe the tax rate @ 10%. This rate of 10% is applicable on the related income whether or not the assessee has obtained the permanent account number. In effect, therefore, even when a foreign entity does not obtain PAN in India, the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urian for the respondent O R D E R Per Pramod Kumar, AM: [1] By way of this appeal, the assessee appellant has challenged correctness of the order dated 28.05.2015 passed by the learned CIT(A) in the matter of rectification of mistake under section 154 r.w.s 200A of the Income Tax Act, 1961, for the assessment year 2014-15, on the following grounds: 1. On the facts and in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing the beneficial provisions contained in section 90(2) of the Act 2.2 In not appreciating the fact that section 206AA of the Act is not a charging section and provisions of Chapter XVII-B governing TDS are not subordinate to section 90(2) of the Act. [2] To adjudicate on this appeal, only a few material facts need to be taken note of. The assessee has made a remittance to a German ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rried the matter in appeal before the CIT(A) but without any success. Learned CIT(A), relying upon the press release dated 20th January 2010 issued by the Central Board of Direct Taxes, held that, in terms of the provisions of Section 206AA, in a case in which the recipient foreign entity has not obtained PAN from the Indian tax authorities, the tax will be deducted at a higher rate of 20%. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n PAN in India, the applicable tax rate is 10% in this case. Section 206AA, which provides a higher tax burden- i.e. taxability @ 20% in the event of foreign entity not obtaining the permanent account number in India, therefore, cannot be pressed into service, as has been done in the course of processing of return under section 200A. To that extent, short deduction of tax at source demand, raised ..... X X X X Extracts X X X X X X X X Extracts X X X X
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