Friday, 23 December 2022

Is Form 10F is mandatory?

While there has been a recent buzz in the industry over the government's move of mandating the furnishing of Form 10F electronically, many people are unaware of the basic fact that the aforesaid form [as per section 90(5)] is only required to be furnished if the Tax Residency Certificate (TRC) furnished by the Non-Resident payee in accordance with section 90(4), does not contain certain information as prescribed in Rule 21AB(1). This is also stated in rule 21AB(2).


The prescribed list of information has been delineated below:

(i)                   Status (individual, company, firm etc.) of the assessee;

(ii)                 Nationality (in case of an individual) or country or specified territory of incorporation or registration (in case of others);

(iii)                Assessee's tax identification number in the country or specified territory of residence and in case there is no such number, then, a unique number on the basis of which the person is identified by the Government of the country or the specified territory of which the asseessee claims to be a resident;

(iv)                Period for which the residential status, as mentioned in the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A, is applicable; and

(v)                 Address of the assessee in the country or specified territory outside India, during the period for which the certificate, as mentioned in (iv) above, is applicable.

(vi)                Thus, if your TRC contains the aforesaid information, you need not furnish Form 10F. The CBDT on 12th December 2022, provided relief to the NR taxpayers not having PAN in India to furnish Form 10F electronically, till 31st March 2023. The NR taxpayers now need to ensure that the aforesaid information is a part of the TRC and they shall remain exempt from the need of getting a PAN in India for the purpose of availing tax benefits

No comments:

CBDT issues second round of frequently asked questions in relation to Direct Tax Vivad Se Vishwas Scheme, 2024

  This Tax Alert summarizes Circular No. 19/2024 dated 16 December 2024 (VSV 2- December Circular) issued by the Central Board of Direct Tax...