A Permanent Account Number known as PAN is a vital document for any taxpayer. It is a unique 10-character string of letters and digits. PAN card requirements are detailed in the Income Tax Act of 1961. A PAN card is a mandatory requirement for all tax-paying individuals, partnerships, companies, etc. It also serves as an identity proof for a number of purposes.
How to get a PAN card for a company?
Applying for a PAN card for a company can be done in a few quick steps, as outlined below:
Step 1: Fill in the application form on the NSDL website. Select Form 49A from the drop-down menu.
Step 2:Select 'Firm' from the 'Application Type' and fill in details such as company name, date of incorporation etc.
Step 3: Fill in the company registration number and income details, as well as the communication address.
Step 4: Fill in the Assessing Officer (AO) Code (you can find the code on the 'AO Code Search for PAN' page on the NSDL website).
Step 5: Upload copies of the required documentation and pay the requisite fee.
Step 6: You will receive an acknowledgment number, which can be used to track the status of your PAN application.
Step 7: Send the signed acknowledgement form within 15 days of filling in the online application to the NSDL office mentioned below:
Income Tax PAN Services Unit,
NSDL e-Governance Infrastructure Limited,
5th Floor, Mantri Sterling,
Plot No.341, Survey No.997,8,
Model Colony, Near Deep Bungalow Chowk.
Documents Requires for PAN Card for Indian Company
Indian companies applying for a PAN card have to submit the following documents along with the application form:
Proof of identity/proof of address:
- Copy of Certificate of Incorporation
- Copy of No Objection Certificate issued by Ministry of Corporate Affairs.
Documents Required for PAN Card for Foreign Company
In the case of foreign companies applying for a PAN card, the following supporting documents are to be submitted.
Submit any one of the following as ID and address proof:
- Copy of Certificate of Registration issued in the country where the applicant is located, duly attested by “Apostille” or by the Indian Embassy or High Commission or Consulate in the country where the applicant is located or authorised officials of overseas branches of Scheduled Banks registered in India
- Copy of registration certificate issued in India of approval to set up office in India by Indian authorities.
As an applicant, you will need a bank draft which is used to pay the Income Tax Department the fee for the issuance of the PAN card. The fee is to be paid in INR (Indian Rupees). For this reason, you can acquire a foreign currency draft drawn in favour of NSDL - PAN or UTITSL. This draft will be payable in Mumbai.
How to get Apostilles for the documents?
As a foreign company applying for a PAN card, all documents submitted have to be apostilled. An apostille validates documents and is accepted in any country that participated in the 1961 Hague Convention Abolishing the Requirement of Legalization for Foreign Public Documents. If your country has participated in this treaty and has signed this pact, no authorization will be needed as India is also a party to this convention.
For apostille, the copies of your documents can be sent to the following offices:
The Legalization Office
The Foreign and Commonwealth office
Secretary of State Office
For other countries, you will need to contact your broker or agent for more information on the process.
Tips on PAN Card for Companies
- Read the instructions on the form and ensure all supporting documents are included when the application is sent.
- The form should be filled in block letters with a black pen in case of offline forms.
- The form should be signed by the CEO only, or the authorized signatory of the firm.
- The PAN Department has a customer care service which can be reached for information and queries.
- Depending on whether the company is Indian or a foreign one, the method of paying the fee would differ.
Does your company need a PAN card?
Any corporate body doing business in India requires a PAN card whether it is registered in India or abroad. Any individual or entity involved in business with an Indian firm requires a PAN card. It is also required for anybody who is involved in generating money out of India whether the company is registered, or has a permanent establishment, or an office in India. Given below is a representative list of bodies that require PAN cards in India.
- Partnership firm
- Association of persons
- Limited Liability Partnership (LLP)
- Body of Individuals
- Limited companies
- Private firms
- Foreign institutional investors
- Hedge funds
Why does your company need a PAN card?
Some of the reasons why getting a PAN Card is important are listed below.
- It serves as a reference number for the Income Tax Department to track your financial transactions. You will be required to quote your PAN on your transactions and your income tax document.
- Even if you are not eligible to pay taxes, it is mandatory to have one if you are earning money.
- Companies, regardless of whether they are registered abroad or in India, are required to pay tax for businesses carried out in the country. Without the PAN, the government will deduct tax at the highest possible rate.
- Your PAN will help you get invoices paid, remittances, and during income tax returns.
- Just like individuals, companies are required to provide their Tax Registration Number (TRN) to whomever is paying them. A TRN can be obtained only when the company has a PAN.
- In the case of foreign companies, it was made mandatory under Section 206AA, amended in 2009 in the Finance Act. Under this amendment, all foreign parties that provide or generate payment to a counterpart in India will have to provide their PAN. This includes not only individuals but also incorporations, companies, limited companies or any other form of entities.
- In the absence of the PAN, the government will charge withholding tax which can be at the rate of more than 30% of the total invoiced payment.
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List Of Pan Card Office in India 2019