Doing Business Across Borders? Here’s Why Form 10F Should Be on Your Radar

Created By : Vikas Sharma

Avoid Double Taxation. Maximize Treaty Benefits. Stay Compliant.

Cross-border trade and international business transactions have grown more prevalent in today's interconnected global economy. It is more crucial than ever to comprehend and handle the complexities of international taxation since people and businesses now generate income in multiple countries.

Ever heard of “double taxation”?

If you're a non-resident (NR) earning income from India, this is a reality you can’t ignore. Double taxation, which occurs when the same income is taxed in both the country where it is generated and the taxpayer's home country, is one of the main issues in this field. The good news? India has signed Double Taxation Avoidance Agreements (DTAAs) with specified nations to address this problem, enabling foreign entities and NRs to seek relief and avoid paying taxes twice on the same income.

But there’s a catch: to claim DTAA benefits, there’s a small but powerful form you must file—Form 10F.

What is Form 10F?

Form 10F is a self-declaration filed by NRIs (individuals or entities) earning income in India, to avoid being taxed on the same income in both India and their country of residence. This form acts as a supporting document when a non-resident seeks to claim lower or nil tax deduction at source (TDS) under the provisions of a DTAA.

To claim the benefits of a tax treaty, NRIs need to furnish a valid Tax Residency Certificate (TRC) issued by the government of their home country and Form 10F as per Section 90 of the Income-tax Act.

Who Needs to File Form 10F?

Form 10F applies to all non-resident taxpayers, including:

• Individuals: This includes foreign citizens working in India, freelancers or consultants providing services remotely, or individuals receiving income from Indian entities.
• Companies: Any foreign company operating in India, even without a permanent establishment, on income earned in India.
• Other Entities: This can encompass any non-resident entities like trusts, partnerships, or associations that derive income from India and seek tax treaty benefit.

Key Information Required in Form 10F

To submit Form 10F, NRs need to give details like their name, address, country of residence, TRC, and Tax Identification Number (TIN).

In case of an entity, required details include certificate of incorporation, key personnel information, complete postal address and the latest TRC.

No PAN? No problem. Even if you don’t have a PAN in India, Form 10F can still be submitted using a foreign TIN or a similar ID number from the resident country. 

Why is Form 10F So Important?

Form 10F plays a critical role in ensuring that NR taxpayers are not unfairly taxed when dealing with Indian clients or earning income from Indian sources. Its importance lies in both financial and regulatory aspects:

• Avoid double taxation by supporting claims under DTAAs, allowing income to be taxed in only one jurisdiction.
• Ensures reduced tax rates, as many DTAAs provide for lower TDS rates on income such as royalties, interest, or technical services.
• Mandatory for foreign vendors working with Indian businesses, especially those providing digital services, consulting, or offshore support.
• Without Form 10F, the Indian payer may deduct TDS at the standard domestic rates, which can lead to unnecessary cash flow constraints or complicated refund claims for the NR.

Filing Requirements & Updates

Form 10F must be submitted electronically via the Income Tax e-Filing portal. The NR needs to create e-filing login credentials, log in, and then furnish the required details in the designated form section.

• PAN Requirement: Form 10F can also be filed in case such non-resident does not have PAN in India.
• Validity and Renewal: While there’s no official expiration date mentioned for Form 10F, it is generally submitted annually or for each financial year while claiming DTAA benefits. The accompanying TRC should also be valid for the relevant period to support the claim.

Common Challenges in Filing

Despite its importance, NRs often face several hurdles while dealing with Form 10F compliance:

• Regulatory Compliance: Understanding and complying with Indian tax regulations, online portals, obtaining a Digital Signature Certificate (DSC) for the purpose of signing the form (i.e. in case the entity has a PAN in India) and documentation standards can be daunting, especially for small businesses or freelancers unfamiliar with Indian tax norms.
• Lack of Awareness: Many eligible taxpayers are either unaware of DTAA benefits or misunderstand their eligibility, resulting in unnecessary tax deductions or missed compliance opportunities.

How AKM Global Can Help You

At AKM Global, we specialize in simplifying cross-border tax matters. Here’s how we can help:

End-to-End Filing Support of Form 10F & Expert Guidance on DTAA Eligibility

• We handle the full process—documentation, portal submission, and compliance checks.
• We assess your eligibility and explain treaty benefits in simple terms.

PAN-Related Assistance

• Help with filing Form 10F without a PAN where applicable
• Support in PAN application for foreign entities, if required

TDS Management & Compliance Support

• Advisory on reduced TDS rates under DTAA
• Ensuring proper documentation to claim exemptions

Documentation & Validation

• Assistance with obtaining and validating Tax Residency Certificates (TRCs)
• Cross-checking of all supporting documents for accuracy

Ongoing Compliance Monitoring

• Monitoring updates from CBDT and tax authorities
• Annual or renewal filing reminders and updates

Let’s Get You Compliant (and Saving!). Get in touch with us.

With modern cross border trade growing rapidly, it is essential to pay all pertinent taxes in full. For NRs doing business in India, Form 10F is essential to achieve fairness and efficiency in taxation. Understanding the nuances and advantages of Form 10F can help you prevent double taxation, lower your TDS obligations, and allow you to conduct business with Indian counterparts without any problems, regardless of whether you're an overseas service provider, an international consultant, or a foreign vendor.

To avoid compliance problems and maximize treaty benefits, it is advised that you speak with a tax advisor or legal specialist knowledgeable about Indian international taxation if you have any questions about your eligibility or how to submit form 10F.

FAQs

Is Form 10F mandatory for all non-residents?

Yes, Form 10F is mandatory for all non-residents earning income subject to Income-tax in India, and who intends to claim DTAA benefit on such income.  

Can I file Form 10F without a PAN?

Yes, NRIs can now electronically file Form 10F without a PAN by registering under the new option ‘Non-Residents not holding and not required to have PAN’ on the Income Tax portal.

How often does Form 10F need to be filed?

There is no specific deadline for filing Form 10F; however, it must be filed annually, typically whenever there's a risk of double taxation. The form remains valid for one year, in line with the validity period of the accompanying Tax Residency Certificate (TRC).

What happens if I don’t submit Form 10F?

If NRIs fail to submit Form 10F and the Tax Residency Certificate (TRC), they may lose the DTAA benefits, and withholding could be at higher tax rates in India.