Categories: Companies Act / ROCIncome Tax

pan requirement for International Taxation

www.carajput.com; Strategy

APPLICABILITY OF PAN REQUIREMENT FOR FOREIGN NATIONALS AT THE TIME OF COMPANY INCORPORATION

Ministry of Corporate Affairs (MCA) has reconciled with the fact that not all Fireign Nationals are required to have PAN.
MCA has recently issued a Circular stating that Foreign Nationals, who are not required to mandatorily possess PAN, shall not be mandatorily required to furnish PAN details of intending Directors at the time of filing the application for Incorporation (e-form INC-7).

Where the intending Director who is a Foreign National is not required to compulsorily possess PAN, it will be sufficient for such a person to furnish his/her passport number, along with undertaking stating that provisions of mandatory applicability of PAN are not applicable to the person concerned.

However, PAN details shall be mandatory only for those foreign nationals who are required to possess “PAN” in terms of provisions of the Income Tax Act, 1961 on the date of application for incorporation.

Requirement of PAN as per current Income Tax Rules: As per the current Income Tax Rules and regulations read with Income Tax Act, it is mandatory to quote one’s PAN in almost all the types of transactions.
Take for example Opening a bank account, apply for Credit Card, making an application for installation of a telephone connection including a cellular phone, Demat account opening, getting Loan, any contract for sale or purchase of securities of a value of exceeding Rs.1 lakh, making an application to any mutual fund for purchase of its units for an amount of Rs.50,000 or more, sale or purchase of any immovable property valued at Rs.5 lakhs or more, purchase of motor vehicle, etc.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: singh@carajput.com or call at 9555555480

More read for related blogs are:

Tags: Foreign NationalsPAN provisions of income tax act 1961

9 years ago

Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.