NEW DELHI: The source of revenue tax division has allowed non-resident taxpayers no longer having PAN to report Form 10F manually until March 31, 2023, a transfer which might ease their compliance burden and permit them to assert decrease TDS charges.
The Central Board of Direct Taxes (CBDT) had in July made it obligatory for non-resident taxpayers to report Form 10F electronically to assert advantage of decrease Tax Deducted at Source (TDS).
However, taxpayers confronted issues in digital submitting of the shape because the source of revenue tax portal didn’t permit a taxpayer who does no longer have a Permanent Account Number (PAN) to report Form 10F.
In a notification, the CBDT mentioned to mitigate authentic hardship to such taxpayers, it’s been determined that such class of non-resident taxpayers who aren’t having PAN and no longer required to have PAN as according to related provisions of the IT Act can be exempted from obligatory digital submitting of Form 10F until March 31, 2023.
“It is reiterated that such category of taxpayers may make statutory compliance of filing Form 10F till March 31, 2023 in manual form as was being done prior to issue of the (July) notification,” the CBDT mentioned in a notification dated December 12.
Nangia Andersen LLP M&A Tax Partner Sandeep Jhunjhunwala mentioned sans the notified transactions requiring quoting of PAN, non-residents can transact with Indian events with out the aversion of a better 20 according to cent withholding tax fee if prescribed main points reminiscent of title, email identity, Address, touch quantity, TIN and a legitimate tax residency certificates (TRC) are furnished to resident Indian payer.
“The partial relaxation notified by the CBDT would definitely eliminate the compliance pinpricks around the requirement of obtaining PAN by non-residents, only for the purpose of obtaining electronic 10F. The easing up, however, is only till March 31, 2023 and non- Residents may want to keep their fingers crossed on further developments related to digital shift of compliances in India,” Jhunjhunwala mentioned.
The Central Board of Direct Taxes (CBDT) had in July made it obligatory for non-resident taxpayers to report Form 10F electronically to assert advantage of decrease Tax Deducted at Source (TDS).
However, taxpayers confronted issues in digital submitting of the shape because the source of revenue tax portal didn’t permit a taxpayer who does no longer have a Permanent Account Number (PAN) to report Form 10F.
In a notification, the CBDT mentioned to mitigate authentic hardship to such taxpayers, it’s been determined that such class of non-resident taxpayers who aren’t having PAN and no longer required to have PAN as according to related provisions of the IT Act can be exempted from obligatory digital submitting of Form 10F until March 31, 2023.
“It is reiterated that such category of taxpayers may make statutory compliance of filing Form 10F till March 31, 2023 in manual form as was being done prior to issue of the (July) notification,” the CBDT mentioned in a notification dated December 12.
Nangia Andersen LLP M&A Tax Partner Sandeep Jhunjhunwala mentioned sans the notified transactions requiring quoting of PAN, non-residents can transact with Indian events with out the aversion of a better 20 according to cent withholding tax fee if prescribed main points reminiscent of title, email identity, Address, touch quantity, TIN and a legitimate tax residency certificates (TRC) are furnished to resident Indian payer.
“The partial relaxation notified by the CBDT would definitely eliminate the compliance pinpricks around the requirement of obtaining PAN by non-residents, only for the purpose of obtaining electronic 10F. The easing up, however, is only till March 31, 2023 and non- Residents may want to keep their fingers crossed on further developments related to digital shift of compliances in India,” Jhunjhunwala mentioned.