If a Russian company receives royalty or fees for technical services (FTS) from an Indian entity, it must submit Form 10F along with a Tax Residency Certificate (TRC) and a No Permanent Establishment (No PE) Declaration to claim the reduced 10% DTAA rate under the India-Russia Double Taxation Avoidance Agreement. Without these documents, the Indian payer is obligated to deduct TDS at 20% + surcharge + cess under Section 115A of the Income Tax Act. This guide applies to foreign companies, Indian businesses making cross-border royalty payments, and CFOs managing DTAA compliance.

What is the Russia-India DTAA and Why Does It Matter for Royalty?

India and Russia have a bilateral tax treaty — the Double Taxation Avoidance Agreement (DTAA) — that prevents the same income from being taxed in both countries. For royalty and FTS payments flowing from India to Russia, the DTAA caps withholding tax at 10%, significantly lower than the domestic rate.

Under Section 115A of the Income Tax Act, 1961, if a foreign company receives royalty or FTS from India without invoking DTAA protection, the TDS rate is 20% plus applicable surcharge and cess. Claiming the DTAA rate requires strict documentary compliance — and Form 10F sits at the centre of that compliance chain.

Scenario	Applicable TDS Rate	Legal Basis
Without DTAA benefit (default)	20% + Surcharge + Cess	Section 115A, Income Tax Act
With valid DTAA claim (Russia-India)	10%	Article on Royalties, India-Russia DTAA

What is Form 10F and Who Needs to File It?

Form 10F is a self-declaration form mandated under Section 90(5) of the Income Tax Act. It must be furnished by the foreign recipient of income — in this case, the Russian company — to the Indian payer before or at the time of payment. The form provides the Indian tax authorities and the deductor with verified residency and identification information about the foreign payee.

The Central Board of Direct Taxes (CBDT) has made it mandatory to file Form 10F electronically on the Indian Income Tax portal. This means the Russian company must:

• Obtain a Permanent Account Number (PAN) in India
• Create an Income Tax login on the Indian IT portal using that PAN
• Arrange a Digital Signature Certificate (DSC) of the authorised foreign signatory
• File Form 10F digitally on the portal

Note: A regular DSC of a director or partner does not work here. You will specifically need the organisational DSC of the authorised signatory of the Russian company, obtained via a valid verification process.

Complete Document Checklist: Russia-India DTAA Royalty Compliance

To claim the 10% DTAA rate and comply fully with Indian tax law, a Russian company receiving royalty from India must arrange the following documents:

1. Tax Residency Certificate (TRC)

The TRC must be issued by the Russian tax authority (Federal Tax Service of Russia) confirming the company's tax residency in Russia for the relevant financial year. This is the foundational document for any DTAA claim.

2. Form 10F (Electronic Filing)

Electronically filed on India's Income Tax portal. Requires PAN registration, IT portal login, and DSC of the foreign authorised signatory. The form captures details such as the company's tax identification number, nationality, period of tax residency, and address.

3. No Permanent Establishment (No PE) Declaration

A self-declaration by the Russian company confirming it does not have a Permanent Establishment (PE) in India. If a PE exists, royalty attributable to that PE would be taxable in India at standard rates regardless of DTAA.

4. PAN Card in India

Without a valid Indian PAN, TDS will be deducted at 20% under Section 206AA — overriding any DTAA benefit. PAN is also required to file ITR in India if needed in future.

5. Income Tax Portal Login

Mandatory for filing Form 10F electronically. The login is linked to the foreign company's PAN.

6. DSC of Authorised Foreign Signatory

Filing on the Income Tax portal requires a valid class-3 DSC. For a foreign signatory, obtaining this DSC requires:

• Email OTP and phone OTP verification of the foreign individual
• Video verification of the foreign individual
• Valid address proof (driving licence or equivalent)
• Photograph of the individual
• Copy of passport

Can a Russian Company Pay Tax Under Section 115A Without DTAA?

Yes. For royalty and FTS income, a Russian company has the option to pay tax at 20% + surcharge + cess under Section 115A without invoking DTAA. In this case, the company is not required to file an ITR in India.

However, if the Russian company chooses to claim the lower 10% rate under the India-Russia DTAA, it becomes mandatory to file an Income Tax Return (ITR) in India. The reduced treaty rate comes with the obligation of disclosure and compliance through the Indian tax system.

Tax Route	Rate Applicable	ITR Filing Required?	Form 10F Required?
Section 115A (domestic law)	20% + Surcharge + Cess	No	No
India-Russia DTAA (treaty route)	10%	Yes	Yes

Step-by-Step Process to Claim DTAA Benefit on Royalty Payments

Step 1: Apply for PAN in India

The Russian company must apply for a PAN using Form 49AA. This requires a copy of the certificate of incorporation and proof of address of the foreign entity.

Step 2: Register on the Income Tax Portal

Once PAN is allotted, register the company on the Income Tax e-filing portal as a foreign company.

Step 3: Obtain DSC of Foreign Authorised Signatory

Arrange a class-3 organisational DSC through a licensed Certifying Authority in India. The foreign signatory will need to go through email OTP, phone OTP, video verification, and submit identity and address proof (passport copy, photo, address proof such as a driving licence).

Step 4: Obtain TRC from Russian Tax Authorities

The Russian company applies to the Federal Tax Service for a Tax Residency Certificate for the relevant year. This document must be apostilled or notarised as required.

Step 5: Prepare No PE Declaration

Draft and sign a declaration confirming absence of a PE in India for the year in which royalty is received.

Step 6: File Form 10F Electronically

Log in to the Income Tax portal using the registered credentials, file Form 10F with all required details, and digitally sign using the DSC.

Step 7: Submit Documents to Indian Payer

Provide the Indian company making the royalty payment with copies of the TRC, Form 10F acknowledgement, No PE Declaration, and PAN. The Indian payer will then deduct TDS at 10% instead of 20%.

Step 8: File ITR in India (If DTAA Benefit Claimed)

If the treaty rate is applied, file the ITR in India for the relevant assessment year using the same portal login and DSC.

Key Takeaways

• The India-Russia DTAA provides a reduced royalty withholding rate of 10%, compared to 20% + surcharge + cess under Section 115A.
• Form 10F, TRC, and No PE Declaration are all mandatory documents to claim this DTAA benefit.
• Form 10F must be filed electronically on the Indian Income Tax portal — paper submissions are not accepted.
• The Russian company must obtain a PAN in India and create an IT portal login to file Form 10F.
• An organisational DSC of the foreign authorised signatory is required — a regular director's DSC will not suffice.
• If DTAA benefit is availed, filing an ITR in India is mandatory.
• If the Russian company opts for Section 115A (20% route), no ITR filing is needed.

How Taxocity Helps with Russia-India DTAA Compliance

Taxocity, trusted since 1975 with a 4.8/5 rating from over 5,000 reviews, offers end-to-end DTAA compliance support for both Indian companies making cross-border royalty payments and foreign companies receiving such income from India.

Our expert team handles the entire process: PAN application for foreign entities, Income Tax portal registration, procurement of the DSC for foreign signatories (including coordination of video verification and document collection), TRC verification, Form 10F electronic filing, No PE Declaration drafting, and ITR filing in India — all under one roof.

With Taxocity's 100% compliance guarantee and real human experts available for consultation, you can avoid the costly error of under-deducting TDS or missing critical filing obligations. Whether you are an Indian business paying royalties to a Russian software company or a Russian entity seeking to optimise your Indian tax liability, our team ensures you remain on the right side of the law.

Talk to a DTAA Compliance Expert Today and get your Form 10F and TRC documentation in order before your next royalty payment.

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Disclaimer: This article is for informational purposes only and does not constitute tax advice. Tax laws and treaty interpretations are subject to change. Please consult a qualified tax advisor or chartered accountant before making any decisions regarding DTAA compliance, TDS deductions, or cross-border payments.