Rule – 37CA, Time and mode of payment to Government account of tax collected at source under section 206C
March 21, 2018
Rule – 37C, Declaration by a buyer for no collection of tax at source under section 206C(1A)
March 21, 2018

Rule – 37BC, Relaxation from deduction of tax at higher rate under section 206AA

37BC. (1) In the case of a non-resident, not being a company, or a foreign company (hereafter referred to as ‘deductee’) and not having permanent account number the provisions of section 206AA shall not apply in respect of payments in the nature of interest, royalty, fees for technical services and payments on transfer of any capital asset, if the deductee furnishes the details and the documents specified in sub-rule (2) to the deductor.

(2) The deductee referred to in sub-rule (1), shall in respect of payments specified therein, furnish the following details and documents to the deductor, namely:—

(i) name, e-mail id, contact number;
(ii) address in the country or specified territory outside India of which the deductee is a resident;
(iii) a certificate of his being resident in any country or specified territory outside India from the Government of that country or specified territory if the law of that country or specified territory provides for issuance of such certificate;
(iv) Tax Identification Number of the deductee in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the deductee is identified by the Government of that country or the specified territory of which he claims to be a resident.

2 Comments

  1. Vipin says:

    How can we file 27Q with Tax Identification Number (without PAN & Tax deducted @ normal rate) in RPU Version 3.4

    • Sunil Dutt says:

      Section 206AA read with Rule 37BC : Rule 37BC is applied if recipient is a non-resident, he does not have PAN and the payment is subject to TDS which is related to Interest, Royalty, Technical Services or Transfer of capital asset. Tax will be deducted at normal rate if such non – resident recipient submit the following information to the payer-

      – Name, Email ID and Contact Number
      – Address in home country
      – Tax Residency Certificate for that home country (If applicable)
      – Tax Identification Number (TIN) in the home country

      We can file 27Q with Tax Identification Number (without PAN & Tax deducted @ normal rate) in RPU Version 3.4 if the below conditions are satisfied..

      a. if rate of deduction is less than 20%
      b. remark value as ‘C’
      c. PAN of the deductee is not available (i.e. ‘PANNOTAVBL’, ‘PANAPPLIED’ or ‘PANINVALID’).
      d. Value under field Nature of remittances is Interest Payment, Royalty, Fees for Technical Services/

      Fees for Included Services, Short Term Capital Gains Or Long Term Capital Gains.

      – Value in this field is applicable for statements pertaining to FY 2016-17 onwards.
      – No value to be provided for statements pertaining prior to FY 2016-17.
      – Tax Identification Number of the deductee in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the deductee is identified by the Government of that country or the specified territory of which he claims to be a resident.

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