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PAN not required in case of non-resident/foreign company

arvind mathur_article

PAN not required in case
of non-resident/foreign company

 
Dated: 13-1-2017
 

By CA. Arvind Mathur

 

Section 206AA, interalia, provides that any person (who is entitled to receive any sum on which tax is deductible at source) shall furnish his PAN to the deductor, failing which tax shall be deducted at the rate mentioned in the relevant provision or at @20% whichever is higher.

With effect from June 1, 2016, sub section (7) of the said section has been substituted to provide that above provision shall not apply to a non resident/foreign company (who does not have PAN) subject to such conditions as may be prescribed.

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