CBDT has issued notification no. 53/2016 dated 24 June 2016 giving relaxation to Non-residents from furnishing PAN no. in India. TDS at higher rate of 20% will not be deducted if following conditions are satisfied by non-resident:-

Provisions of Sec 206AA shall not apply in respect of payments in the nature of

-  Interest,

-  Royalty,

-  Fees for technical services and

-  Payments on transfer of any capital asset,

if the non-resident furnishes the following details/ documents

(i)   name, e-mail id, contact number;

(ii)  address in the country of which the non-resident is a resident;

(iii) Tax Residency Certificate (TRC) from the Government of that country if the law of that country provides for issuance of such certificate;

(iv) Tax Identification Number (TIN) or any other Unique Identification Number of the non-resident of his residence country.

All the above information needs to be furnished in TDS returns as well.

For example:-  ABC Pvt Ltd is making payment of Interest to X Inc, a US Company who do not have  who do have PAN in India. Higher rate of 20% u/s 206AA will not be applicable if US Company provides Name, E-mail, Contact no, Address of USA, TRC, TIN or SSN of USA.