ca hiren d shah ahmedabad email: [email protected]
TRANSCRIPT
It is noticed that in many instances the taxpayers
who are not tax resident of a contracting country
do claim benefit under the DTAA entered into by
the Government with that country. Thereby, even
third party residents claim unintended treaty
benefits. Therefore, it is proposed to amend
Section 90 and Section 90A of the Act to make
submission of Tax Residency Certificate containing
prescribed particulars, as a necessary but not
sufficient condition for availing benefits of the
agreements referred to in these Sections. These
amendments accordingly, apply in relation to the
assessment year 2013- 14 and subsequent
years
Why Certificate of Residency?
A certificate issued by the Government of foreign Country or the specified territory which shall contain the following particulars namely◦ (i). Name of the assessee◦ (ii). Status ( Individual, company, firm etc..) of
the assessee◦ (iii). Nationality (in case of Individual)◦ (iv). Country or specified territory of
incorporation or registration ( in case of others)◦ (v). Assessee’s tax identification number or in
case no such number, then a unique number on the basis of which the person is identified
◦ (vi). Residential status for the purpose of tax◦ (vii). Period for which the certificate is applicable◦ (viii). Address of the applicant for the period for
which the certificate is applicable
What is Tax Residency Certificate?
There has to be an international transaction An Assessee has to make an application to
the AO An application to AO has to be made in the
prescribed Form i.e. Form 10FA On receipt of the form, AO shall issue a
certificate of residence of the assessee in Form 10FB
What are the steps involved?
Shall an assesse file Form 10FA for each payee individually?
Will it require to file every year or only once?
Shall it be file also by PE in India for making remittance to HO?
Would an assesse require separate certificate for Holding Company and its subsidiary Company separately?
Questions…