What is a NO PE Certificate?
A No PE Certificate India (also known as No PE declaration Form India ) is required to be furnished by a Non – Resident, who obtains any income from India . The income can be in the nature of following : –
- Business profits
- Fee for Technical Services
- Royalties
- Interest
- Dividend
- Any other income
Under the Indian laws, a foreign company is generally taxable at the rate of 40% , if it has a Permanent Establishment in India, and the relevant income is attributable to such Permanent Establishment.
Benefits of obtaining No PE Certificate India or No PE declaration Form India
However in respect of various incomes, the tax can be reduced to 10-20 %, if the foreign company does not have a Permanent Establishment in India . In view of this, the Indian tax laws provide that if a non resident self certifies, that it does not have a permanent establishment in India, the tax benefit of the reduced rate can be obtained, provided certain other conditions of being eligible for the Treaty benefit, and documents are provided.
Information contained in No PE Certificate
No PE certificate India would generally contain the following information at the minimum : –
Whether the recipient is a tax resident of the foreign country ?
Reference to the relevant Article of the Tax Treaty entered into by India with that country ;
The place of business of the non resident in the foreign country ;
The tax identification number of the non resident in the foreign country
Other relevant information, on a case specific basis
Obtain the certificate specific to your country
If you are looking at help in obtaining a No PE certificate India or No PE declaration Form India, you can reach us through this link https://pages.razorpay.com/pl_MHbC3vFqHVgbGW/view or https://pages.razorpay.com/pl_MHbDxjkudukzoJ/view for you case specific query.
For any queries, please write them in the Comment Section or Talk to our tax expert
