Finance Act 2016 had amended Section 206AA(7) to provide that higher rate of TDS u/s 206AA shall not apply to payments made to non residents not having PAN subject to certain conditions
The Conditions have now been specified by incorporating Rule 37BC which provides as under:
- Relaxation u/s 206AA(7) to apply to payments in the nature of interest, royalty, fees for technical services and payments on transfer of any capital asset
- Deductee to file following details/documents
- a) Name, Email id, Contact No.
- b) address in the country or specified territory outside India of which the deductee is a resident
- c) Tax Residency Certificate from foreign government, if the laws of that government provide for issuance of such certificate
- d) Tax Identificaton Number (TIN)of resident foreign country or if TIN is not available, Unique ID No. of resident foreign country