CBDT amends Rule 31AA and Form 27 EQ required for furnishing TCS statements under Income Tax Rules, 1961

Central Board of Direct Taxes (CBDT) has issued Notification No. 54/2020 to further amend Income Tax Rules, 1961 which shall come into effect from 1st day of October, 2020.

Key points of the amendments are:

1. After Clause (v) of sub-rule 4 of Rule 31AA relating to Statement of collection of tax, a new sub rule has been inserted where the collector of tax are required to provide the particulars of the amount received or debited on which tax was not collected –
a) by the authorised dealer from the buyer in case the amount or aggregate of the amounts being remitted out of India under the Liberalised Remittance Scheme of the Reserve Bank of India is less than seven lakh rupees in a financial year;
b) by the authorised dealer in case the tax has been collected by the seller; and
c) by the authorised dealer or seller of an overseas tour program from the buyer under clause (i) or clause (ii) of the fifth proviso of sub-section (1G) of section 206C or in view of any notification issued under clause (ii) of the fifth proviso of sub-section (1G) of section 206C;
d) from the buyer under second proviso to sub-section (1H) of section 206C i.e. in case of sale of goods exceeds Rs 50 lakhs.

2. In sub-rule (1) of principal Rule 37BC relating to Relaxation from deduction of tax at higher rate, it has been provided that in case of a non-resident, not being a company or a foreign company (hereafter referred to as ‘deductee’) and not having permanent account number, then the requirement to furnish Permanent Account Number shall not apply in respect of payments also made in the nature of dividend , if the deductee furnishes the details and the specified documents to the deductor that are as follows:
i. name, e-mail id, contact number;
ii. address in the country or specified territory outside India of which the deductee is a resident;
iii. a certificate of his being resident in any country or specified territory outside India from the Government of that country or specified territory if the law of that country or specified territory provides for issuance of such certificate;
iv. Tax Identification Number of the deductee in the country or specified territory of his residence and in case no such number is available, then a unique number on the basis of which the deductee is identified by the Government of that country or the specified territory of which he claims to be a resident.

3. Annexure of the said Form 27EQ i.e party wise breakup of TCS has been substituted to give effect to the mentioned changes.

For further details and substituted Annexure of Form 27EQ please refer the attached document

 

Source: Central Board of Direct Taxes (CBDT)

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