Form 10F Is Now Form 41: TRC, PAN and Paying a Foreign Vendor
If your company pays a foreign vendor — software licence, consultancy, royalty, professional fee — you are required to deduct tax at source before the money leaves India. The rate depends on whether the vendor can claim relief under a tax treaty, and that claim rests on documents they have to give you.
Two things have changed. The form is now numbered differently, and most guidance online has not caught up.
Form 10F is now Form 41
Under the Income-tax Act, 2025, which replaced the Income-tax Act, 1961 with effect from 1 April 2026, the declaration formerly filed as Form 10F is carried forward as Form 41.
| Before (to 31 March 2026) | Now (from 1 April 2026) | |
|---|---|---|
| Form | Form 10F | Form 41 |
| Governing provision | Section 90 / 90A, Rule 21AB of the Income-tax Rules, 1962 | Section 159(8), Rule 75 of the Income-tax Rules, 2026 |
| Filing mode | E-filing on the portal | E-filing on the portal |
| PAN | Caused difficulty for vendors with no Indian PAN | Not mandatory where the non-resident is not required to hold one |
What has not changed is the substance. The form is still a self-declaration that supplies particulars the Indian rules require, it still has to be backed by a Tax Residency Certificate, and it is still filed once per tax year.
Practical note: the two numbers will circulate side by side for some time — vendors, their advisers and a lot of published guidance still say “Form 10F”. Treat them as the same requirement under a new number, and confirm the current form on the e-filing portal at the time you file rather than relying on any article, including this one.
The three documents, and why you need all of them
1. Tax Residency Certificate — the one that cannot be substituted
The TRC is issued by the tax authority of the vendor’s own country. It establishes that they are a resident there for treaty purposes. Without a valid TRC, treaty relief is not available at all — no declaration, undertaking or indemnity from the vendor replaces it.
Check three things when one arrives: that it covers the period in which you are paying, that the name matches the entity you are actually paying, and that it is issued by the tax authority rather than self-certified. TRCs are commonly produced for the wrong financial year, because the vendor’s tax year may not be April to March.
2. Form 41 — the claim itself
The TRC says where the vendor is resident. Form 41 is where the treaty claim is actually made in India, with the particulars Indian rules require — status, nationality, tax identification number, address, and the period for which residence is claimed.
It is filed electronically by the non-resident on the Indian income tax e-filing portal. A non-resident without a PAN can register on the portal for this purpose, but must e-sign using a Digital Signature Certificate — the OTP-based verification route is not available without a PAN.
3. PAN — useful, not always mandatory
Where the non-resident holds a PAN, use it. Where they genuinely are not required to hold one, the form can still be filed. What you should not do is assume the absence of a PAN means Section 206AA’s higher rate automatically applies — the treaty position and the documentation govern that, and this is worth getting a view on rather than defaulting to the highest number.
How this fits the payment you are actually making
The documents above establish the rate. Getting the money out involves a separate set of filings:
- Form 15CB — a chartered accountant’s certificate on the taxability of the remittance and the rate applied
- Form 15CA — your declaration, filed on the e-filing portal, referencing the 15CB where one is required
- Your bank will not process the outward remittance without these
We cover the mechanics on the Form 15CA and 15CB service page, and you can test whether a particular remittance needs a 15CB at all using the 15CA/15CB checker — a meaningful number of payments do not.
The sequence that works: collect TRC and Form 41 before raising the 15CB, not during. A CA cannot certify a treaty rate on documents that do not exist yet, and the most common cause of a stuck remittance is a vendor who has not filed the form.
Put it in the contract, not in the payment run
The single change that removes most of this friction costs nothing: make the documents a condition of payment in the vendor agreement.
A workable clause requires the vendor to furnish a valid TRC for the relevant period and to file Form 41 before the first invoice falls due, to refresh both each tax year, and to accept that in the absence of either, tax will be withheld at the rate applicable without treaty relief.
That last part matters. Without it, the conversation happens after the invoice, with a vendor who expected a net amount and an accounts team holding a payment the bank will not release. With it, the vendor’s own finance function produces the documents as a matter of course.
What goes wrong most often
- TRC for the wrong period. The vendor’s tax year is frequently a calendar year. A TRC for 2025 does not cover a payment in November 2026.
- Entity mismatch. The invoice comes from a group subsidiary; the TRC is in the parent’s name. Treaty relief follows the entity actually receiving the income.
- Form filed once and forgotten. It is annual. A form filed for the previous tax year does not cover this one.
- No DSC. A vendor without a PAN discovers at filing time that they need a Digital Signature Certificate, which takes days to obtain. Raise this early.
- Treaty article misread. Whether a payment is royalty, fees for technical services or business profits changes the rate and sometimes removes the liability entirely. This is the part worth a professional view, not a template.
Frequently asked questions
Is Form 10F still valid, or must I use Form 41?
For periods from 1 April 2026 the declaration is Form 41 under the Income-tax Act, 2025. Much published guidance still refers to Form 10F. Confirm the current form on the e-filing portal when you file — the substance of the requirement is unchanged either way.
Can a non-resident file without an Indian PAN?
Yes, where they are not required to hold one. They register on the e-filing portal and sign with a Digital Signature Certificate, since OTP verification is not available without a PAN.
Do we still need the TRC if Form 41 has been filed?
Yes. They are not alternatives. The TRC proves residence; Form 41 makes the claim. Treaty relief is unavailable without a valid TRC.
How often does it have to be filed?
Once per tax year. Collect a fresh TRC and a fresh Form 41 each year for any vendor you pay regularly.
What if the vendor simply will not provide them?
Then treaty relief is not available and tax is withheld at the rate applicable without it. That is a commercial conversation, and it is much easier to have before the contract is signed than after the invoice is raised.
Does this apply to payments to individuals as well as companies?
Yes. Treaty relief for a non-resident individual — a foreign consultant, for instance — rests on the same TRC and declaration.
Where TAXAJ fits
We issue Form 15CB certificates and file 15CA for outward remittances, advise on the treaty position before the rate is fixed, and help foreign vendors through Form 41 registration and filing when the Indian payer is the one under pressure to get the payment out.
Related: tax residency certificate where an Indian resident needs one for the other direction, DTAA agreements with India, and NRI tax filing.
Further reading on this site: RBI purpose codes for foreign remittance, DTAA withholding tax and tax on foreign inward remittance.
Schedule a call if a remittance is stuck, or reach us on WhatsApp at 8802912345.
Position stated as at September 2026, reflecting the Income-tax Act, 2025 effective 1 April 2026 and Section 159(8) read with Rule 75 of the Income-tax Rules, 2026. Form numbering during the transition from the 1961 Act is being applied in practice and in published guidance inconsistently — verify the current form on the income tax e-filing portal before filing. Treaty treatment depends on the specific treaty, the nature of the payment and the facts; this is general information, not advice on a particular remittance.
