No PE Declaration is a certificate provided by a non-resident who earns income from India, such as interest, fees for technical services, or business income. This certificate allows the Indian payer to withhold taxes at a reduced rate specific to that type of income, provided that there is no permanent establishment or physical presence of the non-resident in India. This helps facilitate smoother and more tax-efficient cross-border transactions.
Format of No Permanent Establishment Declaration
Subject: Declaration of No Permanent Establishment (PE) in India
Dear Sir/Madam,
I, [Your Name], [Your Title] of [Non-Resident Company Name], declare that:
[Non-Resident Company Name] is a non-resident entity incorporated/registered in [Country of Incorporation/Registration].
[Non-Resident Company Name] derives income from India as [Specify the type of income, e.g., Interest, Fees for Technical Services, Business Income, etc.].
[Non-Resident Company Name] does not have a permanent establishment in India as per the Income Tax Act.
I/We undertake to [Non-Resident Company Name] in case of any alteration in the aforesaid declaration including change in tax status, etc.
I/We hereby certify that the declarations made above are correct, complete, and truly stated.
Sincerely,
[Your Name]
[Your Title]
[Non-Resident Company Name]
About Form 10F
Form 10F is an essential document used by non-resident taxpayers to claim tax benefits under an applicable Tax Treaty with India. Availability of Form 10F is a must to claim Tax Treaty benefit, that is designed to prevent double taxation of the same income by the two countries.
Format of Form 10F
FORM NO. 10F
[See sub-rule (1) of rule 21AB]
Information to be provided under sub-section (5) of section 90 or sub-section (5) of section 90A of the Income-tax Act, 1961
I____________*son/daughter of Shri ____________ in the capacity of ____________ (designation) do provide the following information, relevant to the previous year____________ *in my case/in the case of for the purposes of sub-section (5) of *section 90/section 90A:—
| Sl.No | Nature of information | : | Details # |
| (i) | Status (individual, company, firm etc.) of the assessee | : | |
| (ii) | Permanent Account Number or Aadhaar Number of the assessee if allotted | : | |
| (iii) | Nationality (in the case of an individual) or Country or specified territory of incorporation or registration (in the case of others) | : | |
| (iv) | Assessee’s tax identification number in the country or specified territory of residence and if 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 assessee claims to be a resident | : | |
| (v) | 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 | : | |
| (vi) | Address of the assessee in the country or territory outside India during the period for which the certificate, mentioned in (v) above, is applicable | : |
2. I have obtained a certificate referred to in sub-section (4) of section 90 or sub-section (4) ofsection90A from the Government of ____________ (name of country or specified territory outside India)
Signature: ____________
Name: ____________
Address: ____________
Permanent Account Number or Aadhaar Number ____________
Verification
I ____________________________ do hereby declare that to the best of my knowledge and belief what is stated above is correct, complete and is truly stated. Verified today the ______________________________ day of __________________________________________________
_____________________
Signature of the person providing the information
Place: ____________
Notes :
1. *Delete whichever is not
2. #WriteA. if the relevant information forms part of the certificate referred to in sub-section (4) of section 90 or sub-section (4) of section 90A.
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