I. Introduction to Form 10F
Form 10F income tax , is an online Form, which is required to be filed by foreign companies, foreign companies, Limited Liability partnerships, LLC, individuals and other taxpayers. This Form is required to be filed online on the website of the Indian income tax office, after creating an account thereon.
This Article on Form 10F covers the following aspects : –
- Definition and Purpose of Form 10F
- Significance for International Transactions
- Compliance Requirements
- Advantages of Online Filing
- Accessing Form 10F Online
- Steps to File Form 10F Online
- Common Challenges and Solutions
- Documentation Requirements
- Consequences of Non-Compliance
- Case Studies and Examples
- Successful Implementation Stories
- Conclusion
- Contact Us
- FAQs for Online Form 10F
- Format of Online Form 10F
Key aspect covered in this Article are as under : –
| Who has to file Form 10F India? | Non-resident Tax payer with or without PAN |
| What is the purpose of filing Form 10F? | To claim lower rate of tax on Indian income under Indian Tax Treaties |
| Form 10F is to be e-filed from which date? | October 1, 2023 |
| Can Sorting Tax help us to file Form 10F online? | Yes |
| What other documents may be required for filing Form 10F online ? | Digital Signature, TRC |
A. Definition and Purpose
The purpose of Form 10F is to obtain benefit of lower taxes under Indian Tax Treaty. Foreign companies , Limited Liability partnerships, LLC, individuals and other taxpayers who earn income from India, and want to claim the benefit of reduced tax rates under Indian Double Taxation Avoidance with their country of residence are required to file Form 10F online. If a NR does not want to avail tax Treaty benefits, they need not file Form 10F. In some cases, the Indian customer may still insist on Form 10F.
B. Significance for International Transactions
International transaction, are generally liable to taxation in India and the country of residence of the recipient . Generally the tax rate under the Indian tax law are higher, while there may be certain lower tax rate under the Indian tax treaty . Form 10 F, substantiates the eligibility of the non resident recipient, to claim the benefit under such Tax Treaty . In addition to Form 10F, a foreign company may also be required to provide the following documents to the Indian customer
- Tax Residency Certificate (TRC) from the Government of his country of residence – We review your TRC.
- No PE Declaration / Certificate - (No PE Declaration) – This declaration is required to be provided by the foreign company . We regularly assist our clients to prepare a No PE Declaration, based nature of income , relevant Treaty clause and existence of PE, under the applicable Tax Treaty.
C. Compliance Requirements
Form 10F is required to be filed online and a copy of the online Form is required to be downloaded and provided to Indian customer online. There are two ways in which foreign taxpayers can file Form 10F online . These are as under : -
(i) Non-resident who has an Indian Permanent Account Number (commonly referred as PAN)
They can file Form 10F online on the income tax portal after creating an account and affixing Digital signature . Such Non-resident need to undertake the following process to file Form 10F online : -
- Obtain PAN from Indian Income Tax Office
- Obtain TRC from their local Government of country of residence ;
- Obtain Digital Signature in India;
- Create an account with Indian Income Tax Office; and
- E-file Form 10F.
(ii) Non-resident who do not have a PAN Number and who are not required to obtain a PAN Number.
NR who do not have a PAN fall under this category, provided they are not required to obtain a PAN Number .
There are various circumstances under which a Non-resident is required to obtain a PAN number in India, including case where they claim Treaty benefit . NR should carefully evaluate if they are required to obtain PAN.
Contact us to prepare and file Form 10 F Online or WhatsApp at +91-9667714335.
II. Overview of Form 10F Online
Form 10F is required to be filed online. In case where PAN is available, one can login into their account and file Form 10F online. In case where PAN is not available, one can file Form10F, by providing certain required KYC details, and there after completing Form10F.
A. Advantages of Online Filing
Filing Form10F online, has certain distinctive advantages. A taxpayer needs to file Form10F once, every financial year, and there after it can be provided to as many Indian customers, multiple times. This saves the hassle of providing form 10 F, TRC every time an invoice is paid to the foreign firm.
B. Accessing Form 10F Online
One can file Form10F online, from the website of the Indian income tax office at https://www.incometax.gov.in/iec/foportal/ .
For Filing Online Form 10F the following information is required to be provided :
- Whether the taxpayer is an individual, company, etc.;
- Nationality or country of incorporation;
- Tax Identification Number (TIN) in the country of residence;
- Address of the assessee outside India;
- Verification by the assessee as to the veracity of the facts mentioned in the Form; and
- Lastly, other information required.
Need Help with Form 10F online? Contact us Today.
III. Steps to File Form 10F Online
A. Registration Process
As discussed above, one can register themselves, after obtaining the PAN with the Indian income tax office at https://www.incometax.gov.in/iec/foportal/ . Once an account is created, a person can file Form 10 F online after logging in into their account.
In cases where a person does not have a PAN and is not required to obtain a PAN, they can go through the alternate procedure at thttps://www.incometax.gov.in/iec/foportal/ this link to file Form 10F.
For e-filing of the Form, taxpayer should satisfy the following conditions :
- Have an account with Indian Tax Office;
- Have an Indian Permanent Account Number (PAN);
- Have Digital signature of authorized signatory; and
- Tax Residency Certificate from Resident State.
B. Form Submission and Verification
Once the Form 10F, is completed, an authorised person on behalf of the non resident, is required to verify, that the content of the form are correct, and there are no misrepresentation or incorrect facts which have been stated in the form. Thereafter the form can be submitted, by affixing the digital signature in case of a person who has a PAN, and through e-verification in case of a person not having a PAN.
C. Acknowledgment and Confirmation
Once the Form 10F, is submitted, a person can download the form filed, which can be later provided to their Indian customer.
Sorting Tax helps client file Form 10 F online, obtain PAN from Indian Tax Office and securing a Digital signature? Chat with our Experts !
IV. Common Challenges and Solutions
A. Technical Issues and Troubleshooting
While filing Form 10F, following precaution are required to be taken : –
- The details provided should be correct in all aspects ;
- In case where a person has a PAN number, the digital signature should be registered ;
- The tax residency certificate, should be attached to the online Form 10F
B. Documentation Requirements
The following documents are required to be attached with the Form : –
- Tax Residency Certificate (TRC);
- No PE Certificate/ Declaration.
C. FAQs and Support Resources
You can also refer our FAQ Section for more details .
Need help with e-filing of Form 10F?
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V. Compliance and Legal Implications
A. Consequences of Non-Compliance
Form 10F enables a non-resident to claim benefits of lower rates under the Tax Treaty . For example, the rate of withholding tax, on income by way of Fee for technical services or royalty is 20% under the Indian Income Tax Act . In case a person does not provide Form 10F , he cannot claim the benefit of 0-15% tax rate applicable under the India U.S. Tax Treaty.
B. Legal Framework and Regulations
Section 90 and 90A of the Indian come Tax Act, 1961 talks about situations where India has entered into Double Taxation Avoidance Agreement (DTAA) with other Contracting States or specified associations. This section aims to prevent individuals from being subject to income tax in two jurisdictions, leading to double taxation of the same income.
The non-resident can claim the tax relief as per DTAA by furnishing Form 10F as per Rule 21AB of the Income Tax Rules, 1962. The rule enumerates the details that are to be enlisted in Form 10F.
Do you need to prepare Form 10F and No PE Certificate? Chat with our Experts !
VI. Case Studies and Examples
XYZ Inc., a US company, has provided certain management services to ABC India Private Limited for a sum of USD 200,000 . ABC India Private Limited asked XYZ Inc to provide Form 10F, amongst other documents. However, XYZ Inc. is unable to provide such documents.
In such a case, ABC India Private Limited would deduct TDS @ 20% (plus applicable surcharge and cess) as against 0% , that should have been withheld in this case.
Another customer of ABC India Private Limited , LMN INC USA, provided consultancy services that do not make available to ABC India Private Limited. However, it had obtained a PAN in India, had TRC and filed Form 10F.
In such a case, ABC India Private Limited would deduct TDS @ 0% , since LMN has provided all documents to substantiate its claim of Treaty benefit and such services do not make available any technical skills (Assuming LMN does not have a PE in India).
A. Successful Implementation Stories
At Sorting tax, we have successfully assisted various US, UK, Singapore, Italy, Malaysia and other jurisdiction company to File Form 10F and claim lower tax benefits.
VII. Conclusion
Thus it is essential that a foreign company should file Form 10F, do not only reduce the amount of taxes that are paid within India, but also to reduce their recurring compliance of providing Form 10F for every transaction in India, to different customers during the year. This is not only expedite the process of payment, but also reduces compliance burden for companies doing regular transaction with India.
THE NECESSARY DOCUMENTS CAN BE PREPARED BY AN INDIAN TAX CONSULTANT BASED ON YOUR SPECIFIC FACTS. THUS, IF YOU NEED OUR SERVICES FOR DOCUMENTATION ASSISTANCE:
We provide assistance in online filing for Form 10F and obtaining PAN from Indian Tax Office to help you reduce your India taxes.
Chat with our Experts !
Contact Us:
Email – contact@sortingtax.com
WhatsApp – +91-9667714335
Call – +91-9667714335
FAQs for Online Form 10F
- Is filing Form 10 F mandatory for all the non-residents?
Yes, it is mandatory for all the non-resident to file Form 10 F online. - Can a non-resident who does not have a PAN, and who is not required to obtain a PAN, under an obligation to file Form 10 F online?
Yes, they have to file Form 10 F online, although the procedure is relatively simpler compared to the non-resident who are required to obtain PAN .
- I am claiming the benefit of India-USA Tax Treaty and offering my income to Indian tax at a rate lower than Income Tax Act 1961. Am I required to obtain the PAN number?
Unless you fall in some exempt categories, like, investors in GIFT CITY etc, you are required to obtain the PAN number. - From where can I obtain a tax residency certificate or TRC?
A tax residency certificate or TRC, would be issued by your country of residence. For example, if you are a tax resident of USA, the US IRS would issue a TRC to you. - Can Sorting Tax help us to file Form 10 F online?
Yes, we can help you e-file Form 10F. Please chose the relevant category :-
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- If you are a Non-resident who has a PAN Number – Click here to know more;
- If you are a Non-resident who does not have a PAN Number and who is not required to obtain a PAN Number - Click here to know more;
- Further, if you are a Non-resident who does not have a PAN Number but are required to obtain a PAN Number - Click here to know more.
FORMAT OF ONLINE FORM 10F
