TIme to submit Tax Residency Certificate

There is no such time limit prescribed to submit TRC

The TRC obtained under section 90(4)/ 90A(4) and the form 10F as per the section 90(5)/90A(5) are required to be kept with the assessee and not required to submit to the department unless the AO ask to submit the document in the assessment proceedings or any other proceedings or when it is asked by the AO as per clause 2A of the rule 21AB.

There is no specific time limit provided for submission of tax residency certificate. However, you cannot receive payment from India, unless you submit the tax residency certificate and also a CA certificate for such transfer.

Section 90 and 90A, and rule 21 AB does not specify any time limit for filing application in form 10 FA before Income tax Officer, but to claim relief under section 90 you should have this certificate before making claim.

Therefore before filing return you should obtain certificate of residence.

Dear Tax Payer,

As you know, it is a pre-condition that a non-resident shall submit the Tax Residency Certificate as per section 90(4) and Form 10F as per section 90(5) of the Income-tax Act, 1961 to avail the benefit of Double Taxation Avoidance Agreement (DTAA). While making the payment to a non-resident, if the assessee use DTAA provision without obtaining the TRC & Form 10F, then such assessee will be treated as assessee in default.

Nowhere in Section 90 it is explicitly tells when does TRC and Form 10F to be submitted to the IT Authorities. However, whenever there is a scrutiny assessment u/s 143(2), you may have to submit these documents to the Assessing Officer to substantiate that you have complied with the relevant provisions of the Income-tax Act, 1961 and relevant Articles of the DTAA.

Regards,

CA. Rajeev P T

Partner

Rajan Chakravarthy & Associates, Chennai

Email: ca.rajeevpt@gmail.com

*****This Opinion is based on stated facts and the legal position as on date. The views expressed may not be relevant where there is any change in facts or law. This Opinion is not in the nature of an assurance that an alternative view or interpretation cannot emerge.