{"id":16611,"date":"2025-01-16T08:27:47","date_gmt":"2025-01-16T02:57:47","guid":{"rendered":"https:\/\/dev.sunpharma.com\/?page_id=16611"},"modified":"2025-05-28T11:54:24","modified_gmt":"2025-05-28T06:24:24","slug":"non-resident-shareholders","status":"publish","type":"page","link":"https:\/\/dev.sunpharma.com\/he\/non-resident-shareholders\/","title":{"rendered":"Non-resident Shareholders"},"content":{"rendered":"

[et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4.16″ background_image=”https:\/\/dev.sunpharma.com\/wp-content\/uploads\/2020\/12\/BUSINESS-DEVELOPMENT-1.jpg” parallax=”on” animation_style=”fade” da_disable_devices=”off|off|off” saved_tabs=”all” locked=”off” collapsed=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_fullwidth_header title=”TDS on Dividends” header_fullscreen=”on” button_one_url=”https:\/\/sun.stagingservice.net\/quality\/” button_two_url=”https:\/\/sun.stagingservice.net\/innovation\/” _builder_version=”4.16″ title_font=”|700|||||||” title_text_color=”#f7941e” title_font_size=”40px” title_line_height=”1.2em” content_font=”||||||||” content_text_color=”#000000″ content_font_size=”18px” content_line_height=”1.8em” subhead_font=”||||||||” subhead_text_color=”rgba(0,0,0,0.6)” subhead_font_size=”22px” background_color=”rgba(255,255,255,0.8)” custom_button_one=”on” button_one_text_size=”20px” button_one_text_color=”#ffffff” button_one_bg_color=”#f7941e” button_one_border_width=”0px” button_one_font=”|||on|||||” button_one_use_icon=”off” custom_button_two=”on” button_two_text_size=”20px” button_two_text_color=”rgba(0,0,0,0.7)” button_two_bg_color=”#ffffff” button_two_border_width=”0px” button_two_font=”|||on|||||” button_two_use_icon=”off” button_two_custom_margin=”||||false|false” button_two_custom_margin_tablet=”” button_two_custom_margin_phone=”|||1px|false|false” button_two_custom_margin_last_edited=”on|desktop” button_two_custom_padding=”||||false|false” background_layout=”light” width=”50%” width_tablet=”” width_phone=”100%” width_last_edited=”on|phone” animation_style=”fade” animation_duration=”500ms” animation_delay=”300ms” title_font_tablet=”” title_font_phone=”” title_font_last_edited=”on|phone” content_font_tablet=”” content_font_phone=”” content_font_last_edited=”on|phone” global_colors_info=”{}”][\/et_pb_fullwidth_header][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.16″ _module_preset=”default” da_disable_devices=”off|off|off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″][et_pb_column type=”4_4″ _builder_version=”4.16″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.27.4″ _module_preset=”default” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n

NON-RESIDENT SHAREHOLDERS<\/strong><\/h2>\n

Tax is deducted at the source of dividend payment to non-resident shareholders if the non-resident shareholders submit and register the following documents with the Company\/Company\u2019s RTA \u2013 MUFG Intime India Private Limited (previously known as Link Intime India Private Limited).<\/p>\n\n\n\n\n\n\n\n\n\n
Sr. No.<\/th>\nParticulars<\/th>\nRate of Deduction of Tax at Source<\/th>\nDocuments Required (if any)<\/th>\n<\/tr>\n<\/thead>\n
1<\/td>\nForeign Institutional Investors (FIIs) \/ Foreign Portfolio Investors (FPIs)<\/td>\n20% (plus applicable surcharge and cess)<\/td>\nFPI registration number\/certificate.<\/td>\n<\/tr>\n
2<\/td>\nOther Non-resident shareholders<\/td>\n20% (plus applicable surcharge and cess) or tax treaty rate, whichever is beneficial<\/p>\n

35% (plus applicable surcharge and cess) in case of non-residents declaring that they have a permanent establishment in India.<\/span><\/td>\n

To avail of a beneficial rate of tax as per applicable tax treaty, the following documents would be required:<\/p>\n
    \n
  1. Copy of the \u2018Tax Residence Certificate’ of the shareholder\u2019s country of residence valid for the relevant financial year. In case the TRC is furnished in a language other than English, it must be translated from such other language to English, and thereafter, a duly notarised and apostilled copy must be provided.<\/li>\n
  2. Copy of the PAN Card allotted by the Indian Income Tax authorities duly self-attested.<\/li>\n
  3. Copy of electronically filed Form No. 10F<\/a> in the income tax portal for the relevant financial year, along with acknowledgement in the format as attached.<\/li>\n
  4. Copy of self-declaration by the shareholder for non-existence of permanent establishment\/ fixed base in India<\/li>\n
  5. Self-declaration<\/a> by the shareholder regarding the satisfaction of the place of effective management (POEM), principal purpose test, General Anti Avoidance Rule (GAAR), Simplified Limitation of Benefit test (wherever applicable), as regards the eligibility to claim recourse to concerned Double Taxation Avoidance Agreements.<\/li>\n
  6. Declaration under section 199 of Income Tax Act 1961 read with Rule 37BA of Income Tax Rules, 1962, where the credit of TDS deducted by the company is to be reported in the name of the beneficial owner of the Dividend Income, which is other than the person whose name is in the shareholder details as per RTA<\/li>\n<\/ol>\n

    (Note: Application of beneficial tax treaty rate shall depend upon the completeness of the documents submitted by the non-resident shareholder and review to the satisfaction of the Company)<\/p>\n

    In case of shareholder being tax resident of Singapore, proof of satisfying requirement of Article 24 \u2013 Limitation of Relief, should be provided.<\/p>\n<\/td>\n<\/tr>\n

3<\/td>\nIndian Branch of a Foreign Bank<\/td>\nNIL<\/td>\nLower\/nil tax deduction certificate u\/s 195(3) obtained from Income Tax Authority. Self-declaration confirming that the income is received on its account and not on behalf of the Foreign Bank.<\/td>\n<\/tr>\n
4<\/td>\nOverseas Trust<\/td>\n20% (plus applicable surcharge and cess)<\/td>\nThe overseas trust can also be given the tax treaty rate. However, this can be litigated; hence, on a conservative basis, withholding on dividends paid to overseas trusts should be as per the Income Tax Act of 1961 only.<\/td>\n<\/tr>\n
5<\/td>\nAvailability of Lower\/Nil tax deduction certificate issued by Income Tax Department u\/s 197 of Income Tax Act, 1961<\/td>\nThe rate specified in the Certificate<\/td>\nLower\/Nil tax deduction certificate obtained from Income Tax Authority<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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