Please Help: Representative Assessee
Posted Date : 13-Sep-2011 , 05:05:25 pm | Posted By aakash
I have deducted TDS u/s 195 by grossing up. i'm i liable to file return and if yes weather i have to obtain PAN No. as parties do not have it and what ITR i have to file.
Category : Income Tax | Answers : 2 | Comments : 2 | Hits : 742
Answers
Answer By: Ashish Karundia
Dear Akash,
Here, the Non resident is liable to get a PAN number in India as per Section 139A(5A) of Income Tax Act. However, in case he has not applied for the same then the person from whom he is receiving the money will be treated as his agent u/s 163(1)(c) of the Income Tax Act. Further, as per Section 160 (1)(i) he will be treated as representative assessee of the Non resident and will have to comply with all the provisions as if he is the assessee. Therefore, in the instant case, you will be required to file his ITR also. It may be noted that if you are not having the PAN of the Non Resident then you have to make deduction at the rate of as high as 20% as per the provisions of Section 206AA (1).
Should you require any other clarification, please feel free to revert.
Here, the Non resident is liable to get a PAN number in India as per Section 139A(5A) of Income Tax Act. However, in case he has not applied for the same then the person from whom he is receiving the money will be treated as his agent u/s 163(1)(c) of the Income Tax Act. Further, as per Section 160 (1)(i) he will be treated as representative assessee of the Non resident and will have to comply with all the provisions as if he is the assessee. Therefore, in the instant case, you will be required to file his ITR also. It may be noted that if you are not having the PAN of the Non Resident then you have to make deduction at the rate of as high as 20% as per the provisions of Section 206AA (1).
Should you require any other clarification, please feel free to revert.
Answer By: Ashish Karundia
Dear Akash,
You are required to file return only in respect of the income which he is earning from you as you cannot have the knowledge about his income from other person in India. However, if you have the knowledge, then you are liable to file the return in respect of the whole income.
Further, the documents which are required can be known by clicking the following link http://www.utitsl.co.in/pan/pan_nri.html.
Further, if the non resident is not providing the doc then in such case you have to deduct the TDS at the rate of 20%.
You are required to file return only in respect of the income which he is earning from you as you cannot have the knowledge about his income from other person in India. However, if you have the knowledge, then you are liable to file the return in respect of the whole income.
Further, the documents which are required can be known by clicking the following link http://www.utitsl.co.in/pan/pan_nri.html.
Further, if the non resident is not providing the doc then in such case you have to deduct the TDS at the rate of 20%.
Comments
aakash
16-Sep-2011 , 01:40:38 pmon what income i'll be liable to file return.:- the income which he earned from me. or his total income in india. Now as i'm liable to file return on his behalf and as i do not carry his PAN no., i have to apply for the same and if yes then what are the doc i required from that foreign party. and what if they refused to provide the doc.
aakash
21-Sep-2011 , 06:05:04 pmThanx for the info but i already deduct and deposited the TDS @ higer rate. but the view about the PAN no. is not cleared yet.