How to avail benefits of Double Taxation Agreements-DTA - Professionals - Taxation - TIK Share
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How to avail benefits of Double Taxation Agreements-DTA

Rahul Rai


Assessee can pay the tax which favours him- Either taxes as per Income Tax Act or Double Taxation agreements.

The DTAA agreements are entered between two countries to make the tax rates favourable for residents of both the countries.

However Government of India have prescribed some documents to avail the DTA benefits.

My questions are:

  1. Which documents should be provided to avail the benefits?
  2. What is TRC (Tax Residency Certificate)? What is the format of TRC?
  3. What if payee does not have PAN?

My doubts are specifically related to TDS issues. I need to report to client on TDS to be deducted.

Incase documents are not provided by payee, how much TDS should be deducted?

If documents are provided how much tax should be deducted at source?

CA Pulkit Sharma


Section 90 and 90(A) were amended from Assessment year 2012-13. The amended sections require that TRC is a necessary document along with other prescribed documents to claim benefits under Double Taxation Avoidance Agreements.

TRC should contain:

Informations should be contained in TRC

Incase TRC is not made available than Tax will be deducted at the rates prescribed in Income Tax Act. Benefits of DTAA will not be available.