New Delhi, March 31: The Finance Ministry extended the validity of all lower withholding tax orders by three months till June 30 in view of hardships caused due to COVID-19 pandemic.
The Central Board of Direct Taxes in its order gave a major relief to taxpayers whose application for lower or nil deduction of TDS/TCS is pending for disposal, saying that cases where the application is pending and where such certificates were issued for fiscal 2019-20, the validity of the certificates would get extended to June 30, 2020.
In cases where assessees have not been able to apply for such lower/nil deduction certificate for fiscal 2020-21 but were issued such certificates for 2019-20, such certificates will be valid till June 30, 2020.
In cases where the assessee has not applied for lower or nil deduction of TDS/TCS and does not have any certificate for 2019-20, the CBDT has prescribed a modified procedure for application and consequent handling by the assessing officer. The order also prescribes a 10 per cent withholding tax rate on payments to non-residents (including foreign companies) having permanent establishment in India and not covered by the above scenarios till June 30 or disposal of application, whichever is earlier.
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