No PAN Mandatory for Lower TDS under DTAA: Gujarat HC rules in favour of Adani Wilmar Ltd

The Gujarat High Court has ruled in favor of Adani Wilmar Ltd., stating that a Permanent Account Number (PAN) is not mandatory for claiming a lower tax deduction at source (TDS) under a Double Taxation Avoidance Agreement (DTAA). This significant decision clarifies a long-standing point of contention for foreign entities and non-residents receiving income from India. DTAAs aim to prevent double taxation by providing beneficial rates or exemptions. The ruling indicates that even if a foreign entity does not have a PAN, it can still avail the benefits of a DTAA for lower TDS, provided other conditions of the agreement are met. This will streamline transactions and reduce compliance burdens for foreign investors and entities.