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Ask your queries or reply to others' queries => Discussion => Topic started by: pawansingla on February 07, 2014, 11:24:09 PM

Title: whether section 206AA will override DTAA?
Post by: pawansingla on February 07, 2014, 11:24:09 PM
.Our client a company has paid Royalty to a company in singapore.Singapore company does not have pan no in india.

2.Our client had deducted tax at 10% as per DTAA agreement.

3.Ao TDS circle has issued notice that TDS should be 20%.

4.Kindly advice.
Title: Re: whether section 206AA will override DTAA?
Post by: Pankaj on February 14, 2014, 01:31:45 PM
I fear he is correct.
Title: Re: whether section 206AA will override DTAA?
Post by: sagartilak on February 14, 2014, 06:02:01 PM
I think section 206AA contains the words "notwithstanding anything contained in any other provisions of this Act". Hence it has got the overriding effect on section 90 as well..

Further please refer the following case law:

Bosch Limited [TS-904-ITAT-2012(Bangalore)].

Title: Re: whether section 206AA will override DTAA?
Post by: chirag2454 on February 20, 2014, 10:32:32 AM
Dear All,

First we need to check if the recipient was liable to tax in India and is he required to take a PAN in India? Eventhough sec. 206AA starts with a Non-obstante clause, it does refer to only those transactions on which tax is deductible as per chapter XVII-B.
Title: Re: whether section 206AA will override DTAA?
Post by: chirag2454 on February 20, 2014, 10:34:31 AM
Moreover, Income-tax Act, 1961 cannot override DTAA. Its essential to have Tax Residency Certificate in place. You may find the attached writeup useful in this case.
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