Declaration with reference to Section 206AA / 206AB of the Income

Tax Act 1961.

Section 206AA.: Requirement to furnish Permanent Account Number. —

(1) Notwithstanding anything contained in any other provisions of this Act, any person
entitled to receive any sum or income or amount, on which tax is deductible under
Chapter XVIIB (hereafter referred to as deductee) shall furnish his Permanent Account
Number to the person responsible for deducting such tax (hereafter referred to as
deductor), failing which tax shall be deducted at the higher of the following rates,
namely:—
(i ) at the rate specified in the relevant provision of this Act; or
(ii ) at the rate or rates in force; or
(iii ) at the rate of twenty per cent.
(2) No declaration under sub-section (1) or sub-section (1A) or sub-section (1C) of section
197A shall be valid unless the person furnishes his Permanent Account Number in such
declaration.
(3) In case any declaration becomes invalid under sub-section (2), the deductor shall
deduct the tax at source in accordance with the provisions of sub-section (1).
(4) No certificate under section 197 shall be granted unless the application made under
that section contains the Permanent Account Number of the applicant.
(5) The deductee shall furnish his Permanent Account Number to the deductor and both
shall indicate the same in all the correspondence, bills, vouchers and other documents
which are sent to each other.
(6) Where the Permanent Account Number provided to the deductor is invalid or does not
belong to the deductee, it shall be deemed that the deductee has not furnished his
Permanent Account Number to the deductor and the provisions of sub-section (1) shall
apply accordingly.".

Section : 206AB. Special provision for deduction of tax at source for non-filers
of income-tax return.—
(1) Notwithstanding anything contained in any other provisions of this Act, where tax is
required to be deducted at source under the provisions of Chapter XVIIB, other than
section 192, 192A, 194B, 194BB, 194LBC or 194N on any sum or income or amount paid,
or payable or credited, by a person (hereafter referred to as deductee) to a specified
person, the tax shall be deducted at the higher of the following rates, namely: —

(i) at twice the rate specified in the relevant provision of the Act; or
(ii) at twice the rate or rates in force; or
(iii) at the rate of five per cent.
 (2) If the provisions of section 206AA is applicable to a specified person, in addition to the
provision of this section, the tax shall be deducted at higher of the two rates provided in
this section and in section 206AA.
(3) For the purposes of this section "specified person" means a person who has not filed the
returns of income for both of the two assessment years relevant to the two previous
years immediately prior to the previous year in which tax is required to be deducted, for
which the time limit of filing return of income under sub-section (1) of section 139 has
expired; and the aggregate of tax deducted at source and tax collected at source in his
case is rupees fifty thousand or more in each of these two previous years:
Provided that the specified person shall not include a non-resident who does not have a
permanent establishment in India.
Explanation.—For the purposes of this sub-section, the expression "permanent
establishment" includes a fixed place of business through which the business of the
enterprise is wholly or partly carried on.'.

Declaration by the Vendor

- I declare that I have read the provisions of Section 206AA / 206AB (as applicable)
and submitted my declaration (compliance/ non-compliance :: Yes / No) against
the Invoice in the POWERGRID Vendor Portal, https://vendor.powergrid.in.

- In case of wrong declaration and resultant lower deduction of TDS/TCS,

recovery/demand on account of Interest and Penalty if any from the tax
department then the same will be recovered from all the future payments to be
made to the me (vendor). In case the amount is insufficient then legal action will
be taken for recovering the same from me. (vendor).