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Documents for Indian PAN

Documents for Indian PAN

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I need to apply for a PAN from India in order to avoid the full weight of withholding tax.

Does anybody know what is the best supporting document to provide?

The guidance notes ask for a certificate of registration, but does this exist in the U.K?

We have the certificate of incorporation but that does not show the company's address which is required.

Amy help please

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Routemaster image
By tom123
22nd Dec 2015 11:07

I am trying the same

How funny, I was requested to provide the same yesterday.

I don't think we can get a PAN - as that seems to be an Indian identity card - which would surely not apply to a UK company supplying goods?

I am going to write to HMRC requesting a Certificate of Residency and see what happens - I will watch this thread with interest.

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By njpandya
22nd Dec 2015 11:38

Ashamed of Indian Tax Authorities

Taxability of technical, managerial or consulting services provided by foreign companies to Indian clients performed outside India

Another important amendment relates to the taxability of technical, managerial or consulting services provided by foreign companies to Indian clients when such services are performed outside of India.

However, foreign companies decided to take a stand against the issue, citing that such services should not be taxable in India since they were not actually physically performed in India. This culminated in the Indian Supreme Court case of Ishikawajima Harima Heavy Industries (288 ITR 408), where the apex court held that services that are both rendered and used in India are to be taxed in India. Simply put, the Supreme Court’s opinion was that if both of conditions were not fulfilled, then the fees for such services are not to be charged as a tax in India.

Source: http://www.india-briefing.com/news/withholding-taxes-india-6785.html/

 

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By chrischilds64
22nd Dec 2015 14:12

Sure PAN is needed

 

The company we are dealing with are a subsidiary of a worldwide consultancy. They insist that we get a PAN in addition to a certificate of residence. There is an online PAN application site which allows for applications by foreign companies for a small fee but I need to be sure that the documentation I send in support is what they want so as not to waste my time.

 

 

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Jennifer Adams
By Jennifer Adams
22nd Dec 2015 14:18

Certificate of residency...

I too am dealing with the Indian tax authorities for a client company that is doing some work actually in India. They have had to get a PAN number.

Their tax officials have specifically asked for:

confirmation of UK Tax residency in the form of a certificateCopy of the incorporation certificateLetter of authorisation – from the company issued in the name of the worker (in this case the director)

You can apply for the tax residency certificate online here:

https://online.hmrc.gov.uk/shortforms/form/PT_CertOfRes

I applied a month ago - it supposedly takes 2 weeks - nothing yet.

Thanks (1)
Routemaster image
By tom123
23rd Dec 2015 10:08

Fee payable?

I think I am correct that there is a fee payable?

We have decided to ask for payment net of the withholding tax.

Fortunately, we anticipated there could be issues such as this, and incorporated this in to our original prices.

Our work is probably a one off - and I also thought I saw something about incurring regular reporting to India if we do have a PAN.

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By Mr_Flibble2
23rd Dec 2015 10:41

Bear in mind...

Please bear in mind that you cannot claim credit for foreign tax suffered that could legally have been avoided.  If you choose not to apply for a PAN and suffer a higher rate of withholding as a result, you cannot claim tax credit relief for the excess tax suffered 

HMRC's manuals at INTM164140 explain the principle fairly well. 

As an earlier poster has pointed out - the whole scenario with PANs being required and withholding being applied to foreign entities providing services outside India to Indian customers is being tested in the courts as it is in breach of various tax treaties. 

 

 

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