Q. Applicability of DTAA on FTS and how to avail benefit of DTAA

Question

Hello Friends,

One of my client remitted the amount to a US National as FTS (Fees for Technical Services) agreeing the fact that They are eligible for DTAA Relief as per Article 12 of Indo-US Treaty on DTAA. But the US National did not had TRC (Tax Reisdency Certificate). Nor Form 10F was filed by them. My Question is ,

1. Is TRC Mandatory to be taken by the NRI in this case ?

2. If TRC is taken now, will this act as a shield on all the previous payments done or all of them will be disallowed ?

3. Is TRC sufficient OR TRC along with Form 10F filed will be considered in this case ?

Please guide me in this respect.

Answer 1

1. TRC is mandatory to avail the DTAA benefits.

2. TRC is required for each year.

3. Form 10F is required if TRC does not contain all required information. It is advisable to get the form 10F as well.