PAN card number is unique to each cardholder and helps identify the income tax payer. It is required for individuals, partnerships, companies. It also serves as an identity proof from a number of purposes.
Given below is a list of bodies that require PAN cards in India.
- Corporates
- Companies
- Firms
- LLC
- LLP
- Partnerships
- Sole proprietorship
- Trusts
- Incorporations
- Limited companies
- Private firms
- Associations
- 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 was made mandatory by the Government of India under the Income Tax Act, 1961 in recent years and came into effect in April 2010. The Act was amended and Section 206AA was inserted in 2009 by 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 in corporations, 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.
- 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 whoever is paying them. A TRN can be obtained only when the company has a PAN.
How to get a PAN card for a company?
- Download the application form 49A from the internet on any of the reliable PAN Websites.
- Read the instructions for filling the form carefully. All details of the process will be mentioned on the form.
- Fill in the application and provide all the required information.
- You need to acquire a bank draft for the payment of the PAN Card fees. Bank charges for the draft will have to be borne by the applicant.
- Enter the details of bank draft which includes issuing bank, date of issue, and the demand draft number.
- The name and details of the Assessing Officer can be left blank.
- Once you have filled out the form, you can download and print the form.
- Sign the form and send it along with supporting documents to the PAN agent or broker you have selected.
- The supporting documents need to be apostilled.
- You can also send it directly to NSDL or any NSDL processing centers in India.
- Note down the PAN card application number which will help you track the status of your application.
- The government will then issue your firm a PAN number and the card will be dispatched to your registered address.
- It can take around 5 weeks to receive your PAN card.
Documents Required for PAN Card for Company
You require the following supporting documents.
- Submit any one of the following as ID proof:
- An apostilled copy of the Certificate of Incorporation.
- An apostilled copy of the Business Registration Certificate
- An apostilled copy of the Articles of incorporation.
- Submit the following as Address proof:
- An apostilled copy of the company bank statement bearing the company name and full current address for communication. The PAN card will be delivered to this address.
- You require a bank draft which is used to pay the Income Tax Department the fee for the issuance of the PAN card. Currently, the fee is around Rs. 1,000. The fee needs to be paid in INR (Indian Rupees). For this reason, you can acquire a foreign currency draft drawn in favor of NSDL – PAN or UTITSL. This draft will be payable in Mumbai.
