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

The Gujarat High Court has reaffirmed that Permanent Account Number (PAN) is not mandatory for non-residents to avail a lower Tax Deducted at Source (TDS) rate under a Double Taxation Avoidance Agreement (DTAA). This ruling, in favor of Adani Wilmar Ltd., clarifies that DTAA provisions override Section 206AA of the Income Tax Act, which otherwise mandates higher TDS for non-PAN cases. This decision significantly benefits foreign entities and individuals without an Indian PAN, enabling them to claim beneficial treaty rates. It streamlines cross-border transactions and investments by reducing compliance hurdles, reinforcing the supremacy of international tax treaties over domestic tax laws in specific contexts.