Friday, 19 February 2016

PAN Mandatory for transaction above 200,000

With effect from 1 January 2016, you would have to furnish your Permanent Account Number (PAN) for all transactions above Rs 2 lakhs, irrespective of the mode of payment adopted. This decision by the Indian Finance Ministry is a relaxation from the initial proposal made by Arun Jaitley during the 2015-16 Budget, wherein he motioned to make PAN details compulsory for sale or purchase of any item above Rs 1 lakh.

The Central Board of Direct Taxes (CBDT) asserted on Tuesday, "The government has received numerous representations from various quarters regarding the burden of compliance this proposal will entail. Considering the representations, PAN will be required for transactions of an amount exceeding Rs 2 lakh regardless of the mode of payment."

Besides, the Finance Ministry has rationalised monetary limits for specific transactions that require mandatory quoting of PAN. Quoting PAN details is a requisite to open all bank accounts except the Jan Dhan. Landline and mobile connections will also not require quotation of PAN anymore.

Nature of transaction                Existing requirement                          

Immovable property                 Transactions worth Rs. 5 lakh or more    

Time deposit                            Exceeding Rs. 50,000/-with any bank                                                                                                                                                                                        
Opening of new bank account     All new accounts                                  
Installation of cellphone             All instances                                         
/telephone connections

Hotel/restaurant bills                Payments exceeding Rs. 25,000/-              
Foreign travel                         Cash payment in connection with foreign travel of an amount exceeding Rs.                                                        25,000/-including forex purchase                                                                                                                                                                                                                                                                                                           
Share of companies                 Share purchases worth Rs. 50,000/-\and more                                                                                                                                                                  

Purchase or sale of                  No requirement                                                   
goods and services                                                                                                                                                                                                         
Cash cards/pre-paid                 No requirement                                                                                                and Settlement Act

Nature of transaction                   New requirement

Immovable property                 Sale/purchase exceeding Rs. 10 lakhs    

Time deposit                           Deposits with co-operative banks,post office, Nidhi, NBFC will also need PAN,                                                  deposits aggregating  Rs. 5 lakh or more per year will need PAN

Opening of new bank account    Jan Dhan excluded

Installation of cellphone            Discontinued
/telephone connections

Hotel/restaurant bills                Payments exceeding Rs. 50,000/

Foreign travel                         Cash payment in connection with travel of an amount exceeding Rs. 25,000/-                                                       Foreign travel of an amount including forex purchase exceeding Rs. 50,000/-                                                      including forex purchase                                                                                                                                                                    
Share of companies                 Buying or selling shares worth Rs. 1 lacs \and more lakh of unlisted companies.  v                                                Opening demat account.

Purchase or sale of                 Purchase or sale of any good or service exceeding Rs. 2 lakh per transaction       
goods and services                                                                                                                                                                                                         
Cash cards/pre-paid                 Cash payment aggregating to more than Rs. 50,000/- a year                           instruments under Payment                                                                   

and Settlement Act

Service tax registration procedure

The application for Service Tax registration has to be filed via  ST-1 FORM  which can be  submitted online.
1.    First of all assessee has to login on ACES website. Assessee has to fill the ST-1 FORM which he will get under REGtab.
2.    On applying for Service Tax Registration online , an assessee is required to take a print of the ST-1 FORM and relevant document to the Commissionerate with whom you are registering yourself.
3.    The Superintendent  shall after verification of ST-1 FORM either grant the service tax registration certificate  (ST-2) to the assessee or send intimation for non acceptance of Service Tax Registration.
4.    If either of the above 2 option is not exercised within 2 days  by the Superintendent the Service Tax Registration shall be deemed to have been granted.
How TaxOrigin Can Help you in Registration of Service Tax ?
  • TaxOrigin can help you to register your business with Service Tax authorities within 6 to 12 days subject to Government processing time.
  • Experts from TaxOrigin shall understand the specific requirements regarding your business and based on various inputs shall fill up and submit Form ST 1 online.
  • On getting the signature on Form ST 1 and collection of supporting documents, our team shall assist you for verification of documents and Form ST 1 with the Service Tax Department who shall in turn allot the Service Tax Registration number in form ST 2.
Click here to view service tax registration :-

Whether cenvat credit on Swach bharat cess is allowed ?

SBC is not integrated in the Cenvat Credit Chain. Therefore, credit of SBC cannot be availed. Further, SBC cannot be paid by utilizing credit of any other duty or tax.

Click here to see the full FAQ regarding SBC:-