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India:rules notified for relaxation from higher deduction of 20% on payments to non-residents not having PAN

Global Tax Update:July 2016/India

The existing provisions of Income Tax Act of India provide that where a recipient does not furnish PAN in India to the payer, then tax shall be deducted at 20% or a higher rate. Treaty rates are disregarded in this situation.(Global Tax Update:July 2016/India)

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1. Rules notified for relaxation from higher deduction of 20% on payments to non-residents not having PAN

The existing provisions of Income Tax Act of India provide that where a recipient does not furnish PAN (Permanent Account Number) in India to the payer, then tax shall be deducted at 20% or a higher rate. Treaty rates are disregarded in this situation.

2. CBDT amends Income-tax Rules clarifying the applicability of GAAR

As per the CBDT (Central Board of Direct Taxes) notification, investments made prior to 1 April 2017 have been protected from the application of GAAR (General Anti Avoidance Rules) provisions.

3. Changes in the FDI Policy 2016

The DIPP (Department of Industrial Policy and Promotion, Ministry of Commerce & Industry, Government of India) recently issued FDI (Foreign Direct Investment) Policy 2016. The Circular has been effective from 7.06.2016.

4. Changes in FDI Policy 2016

With the objective of providing major impetus to employment and job creation in India, the Government of India on 20.06.2016 announced several amendments in the FDI Policy 2016.

 

 

>> Click for Japanese [PAN のないインド非居住者への支払:源泉税率20%の課税要件を緩和 ほか]

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