| COURT: | ITAT Hyderabad |
| CORAM: | D. Manmohan VP, Dev Darshan Sud J, P.M.Jagtap (AM) |
| SECTION(S): | 195, 206AA |
| GENRE: | Domestic Tax, International Tax |
| CATCH WORDS: | TDS deduction |
| COUNSEL: | C. Subrahmanyam, K. R. Sekar, Padamchand Khincha, Rajan Vora, Siva Kumar |
| DATE: | February 13, 2017 (Date of pronouncement) |
| DATE: | February 22, 2017 (Date of publication) |
| AY: | 2011-12 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 206AA does not have an overriding effect over the other provisions of the Act. By virtue of s. 90(2), the provisions of the Treaty override s. 206AA to the extent they are beneficial to the assessee. Consequently, the payer cannot be held liable to deduct tax at higher of the rates prescribed in s. 206AA in case of payments made to non-resident persons in spite of their failure to furnish the PAN | |
In view of the above discussion, we are of the view that the provisions of section 206AA of the Act will not have a overriding effect for all other provisions of the Act and the provisions of the Treaty to the extent they are beneficial to the assessee will override sect ion 206AA by virtue of section 90(2). In our opinion, the assessee therefore cannot be held liable to deduct tax at higher of the rates prescribed in section 206AA in case of payments made to non-resident persons having taxable income in India in spite of their failure to furnish the Permanent Account Numbers
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