




A No PE (Permanent Establishment) Declaration is a document submitted by foreign companies to confirm they do not have a fixed place of business in India. It helps in claiming benefits under the India–DTAA and avoiding higher withholding tax rates on income from India.
Yes, a Tax Residency Certificate (TRC) from the home country is required along with the No PE Declaration. These documents work together to confirm treaty eligibility and non-taxable status in India.
Yes, but the Indian payer, in certain cases, may deduct tax at a higher rate (20%) if PAN is not furnished.
It typically includes the foreign entity’s name, country of residence, nature of income, affirmation of no PE under Article 5 of the DTAA, and the relevant treaty clause. It must be signed by an authorized representative of the company.
The declaration is submitted to the Indian customer along with the TRC and Form 10F before or at the time of invoicing/payment to enable reduced withholding tax rates. We can also assist in preparation of No PE Certificate
Failure to submit may result in the Indian payer deducting TDS at a higher rate (up to 30%). It can also delay payment processing and prevent the application of tax treaty relief.