To avail DTAA benefits, TRC is compulsory, PAN is not a requirement.

However, as per section 206AA, if deductee does not have PAN TDS should be higher of applicable rate or 20% whichever is higher.


If Deductee have TRC but not PAN:

      Tds should be Rate applicable as per DTAA or section 206AA(20%), whichever is higher.


If deductee has TRC and PAN:

     TDS should be deducted as per rates in DTAA agreement


Does not have TRC or PAN:

    TDS should be deducted at the highest of:

-          Rate applicable as per IT act, 1961

-          Rate as per section 206AA

-          40%, if deductee is in NJA

-          Rate in Force

Whichever is higher

Posted 3 years, 3 months ago by CA Pulkit Sharma

No response yet, be first to reply.

Your Reply:

You need to be logged in to reply.