| COURT: | ITAT Bangalore |
| CORAM: | Abraham P. George (AM), Vijay Pal Rao (JM) |
| SECTION(S): | 200A, 206AA |
| GENRE: | Domestic Tax, International Tax |
| CATCH WORDS: | TDS deduction |
| COUNSEL: | B. K. Manjunatha |
| DATE: | February 12, 2016 (Date of pronouncement) |
| DATE: | February 28, 2016 (Date of publication) |
| AY: | 2011-12 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 206AA: S. 90(2) overrides s. 206AA and so the assessee is required to deduct TDS as per the DTAA and not as per s. 206AA. The issue is debatable and so cannot be rectified by the AO u/s 200A | |
Where the tax has been deducted on the strength of the beneficial provisions of section DTAAs, the provisions of section 206AA of the Act cannot be invoked by the Assessing Officer to insist on the tax deduction @ 20%, having regard to the overriding nature of the provisions of section 90(2) of the Act. Section 206AA of the Act does not override the provisions of section 90(2) of the Act and in the payments made to non-residents, the assessee correctly applied the rate of tax prescribed under the DTAAs and not as per section 206AA of the Act because the provisions of the DTAAs was more beneficial
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