Business Standard

Overseas firms see compliance burden increasing to get tax treaty benefits

Chartered accountants' group asks CBDT to do away with PAN requirement for filing form electronically


Indivjal Dhasmana New Delhi
Overseas companies without a permanent establishment in India are wary of increased compliance burden this financial year, as they have to file forms electronically to claim benefits under double taxation avoidance agreements (DTAA).

The forms are needed for taxes paid on payments from Indian vendors for the services given by overseas firms with no PE. Indian vendors deduct withholding tax or tax deducted at source (TDS) on these payments. In case, treaty benefits are not given, higher tax burden will fall on such transactions.

The Finance Act, 2012 inserted section 90(4) under the Income Tax Act, 1961 to provide that

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First Published: Sep 19 2022 | 12:24 PM IST

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