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Tax Residency Certificate

Posted @ March 6, 2013, 11:01 pm under (International Taxation Services)

Tax Residency Certificate (TRC)

As per the amendment to the Indian Income Tax Act, Non Residents who wish to avail DTAA benefit have to mandatorily provide 'Tax Residency Certificate (TRC).
 

TRC is issued by the tax/government authority of the country where the NR resides. The Tax Department or Finance Ministry or Chartered Accountant abroad may guide as to procedure to obtain TRC. No other document in lieu of TRC shall be considered for availing the DTAA rate. 
 

 

The requirement for Certificate for claiming relief under an agreement referred to in sections 90 and 90A of the Income Tax Act and Income Tax Rule 21AB.

 

(1) According to the Rule 21AB the certificate referred to in sub-section (4) of section 90 and sub-section (4) of

section 90A to be obtained by an assessee, not being a resident in India, from the Government of

the country or the specified territory 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 in the country or specified territory of residence or in

case 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;

(vi) Residential status for the purposes of tax;

(vii) Period for which the certificate is applicable; and

(viii) Address of the applicant for the period for which the certificate is applicable.

 

(2) The certificate referred to in sub-rule (1) shall be duly verified by the Government of the

country or the specified territory of which the assessee, referred to in sub-rule (1), claims to be a

resident for the purposes of tax.

 

(3) An assessee, being a resident in India, shall, for obtaining a certificate of residence for the

purposes of an agreement referred to in section 90 and section 90A, make an application in

Form No. 10FA to the Assessing Officer.

 

(4) The Assessing Officer on receipt of an application referred to in sub-rule (3) and being

satisfied in this behalf, shall issue a certificate of residence in respect of the assessee in Form

No. 10FB.

 

 

 

Format of a request letter that can be used by you to submit to your tax/government authority to obtain a TRC

 

Date: DD/MM/YY

 

To

_________

_________

_________

 

Subject: Request for issuance of Tax Residency Certificate

 

Dear Sir / Madam,

 

I am a resident of _________(country name)and details of my residence are given below:

 

Full Name :

Nationality :

*Tax Payer’s Identification Number :

Mailing Address :

Contact Number :

Email :

 

(* In case no such number, then, a unique number on the basis of which the person is identified by the Government of the country)

 

My overseas income details areas under:

 

Period :

 

No. of Days presentin ________ during above period :

 

Nature of Overseas income :

 

Estimate of Overseas income :

 

Under the Double Taxation Avoidance Agreement (Treaty) between ______ (country name)and India I wish to

apply for lower withholding tax rate on my income earned in India. In order to avail the same Indian

regulations require me to furnish a Tax Residency Certificate containing the below mentioned information:

 

  • Name of the tax payer
  • Status (individual, company, firm etc.) of the tax payer
  • Nationality (in case of individual)
  • Country or specified territory of incorporation or registration (in case of others);
  • Tax Payer’s tax identification number in the country or specified territory of residence or in case 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
  • Residential status for the purposes of tax
  • Period for which the certificate is applicable
  • Address of the tax payer for the period for which the certificate is applicable

 

Hence I request you to issue me a Tax Residency Certificate with the above mentioned details at the earliest

in order to be able to avail the benefit of lower withholding rate under the above mentioned Treaty.

 

Thanking you.

Yours sincerely.

 

(X) _________________________

Signature of the tax payer

 

 

 

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