The earnings tax branch has allowed non-resident taxpayers not having PAN to file Form 10F manually till March 31, 2023, a circulate which would ease their compliance burden and permit them to say lower TDS rate.
The Central Board of Direct Taxes (CBDT) had in July made it mandatory for non-resident taxpayers to document Form 10F electronically to say advantage of decrease Tax Deducted at Source (TDS).
However, taxpayers faced problems in electronic submitting of the shape because the earnings tax portal did not permit a taxpayer who does no longer have a Permanent Account Number (PAN) to file Form 10F.
In a notification, the CBDT said to mitigate real complication to such taxpayers, it has been determined that such class of non-resident taxpayers who aren’t having PAN and now not required to have PAN as in line with relevant provisions of the I-T Act could be exempted from obligatory electronic submitting of Form 10F till March 31, 2023.
“It is reiterated that such class of taxpayers may also make statutory compliance of filing Form 10F till March 31, 2023 in guide form as become being done prior to issuance of the (July) notification,” the CBDT said in a notification dated December 12.
Nangia Andersen LLP M&A Tax Partner Sandeep Jhunjhunwala said sans the notified transactions requiring quoting of PAN, non-citizens can transact with Indian parties with out the aversion of a better 20 in line with cent withholding tax rate if prescribed info consisting of call, email identity, deal with, contact wide variety, TIN and a legitimate tax residency certificates (TRC) are supplied to resident Indian payer.
“The partial rest notified through the CBDT would honestly get rid of the compliance pinpricks across the requirement of acquiring PAN with the aid of non-citizens, best for the cause of acquiring digital 10F. The easing up, but, is simplest till March 31, 2023 and non-residents may additionally need to maintain their hands crossed on further developments associated with virtual shift of compliances in India,” Jhunjhunwala stated.