Permanent Account Number
Permanent Account Number (PAN) is a ten-digit alphanumeric number allotted by Income Tax Department under the supervision of the Central Board for Direct Taxes (CBDT) and it also serves as an important proof of identification. The primary purpose of the PAN is to bring a universal identification to all financial transactions and to prevent tax evasion by keeping track of monetary transactions. The PAN is unique to each individual and is valid for the life time of the holder, throughout India.
The PAN is mandatory for a majority of financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits, high-value transactions, etc. Obtaining a PAN does not imply that it is mandatory for you to pay income tax. Income Tax is required to be paid only if there is taxable income.
ICS can help you obtain your PAN Card quickly and hassle-fee.
What is PAN?
Permanent Account Number (PAN) is a ten-digit alphanumeric number allotted by Income Tax Department. PAN is issued in the form of a laminated plastic card as given below (commonly known as PAN card).
What to do if you have two PAN cards?
A person cannot have two PAN. If a person has been allotted more than one PAN then he should immediately surrender the additional PAN card(s).
Who can obtain PAN?
PAN can be obtained by any person (including Indian or Foreign Nationals) or artificial persona like Companies, LLP, Trust, Society, etc.
Who must have PAN?
- All existing assesses or taxpayers or persons who are required to furnish a return of income, even on behalf of others, must obtain PAN.
- Any person, who intends to enter into financial transaction where quoting PAN is mandatory, must also obtain PAN.
- The Assessing Officer may allot PAN to any person either on his own or on a specific request from such person.
When to apply for PAN?
There is no minimum age requirement for obtaining PAN. Any person can apply and obtain a PAN.
When does a PAN expire?
PAN does not have an expiry date. It is valid for lifetime of the person.
How to Obtain PAN?
PAN be obtained by submitting application in prescribed form along with the related documents and prescribed fees at the PAN application center of UTIITSL or NSDL. An online application can also be made from the website of UTIITSL or NSDL.
How long does it take to obtain PAN?
PAN Card can be obtained in 15-20 working days from the date of submission of application along with the required documents.
Where to apply for PAN?
Income Tax Department has authorised UTIITSL and NSDL to set-up and manage PAN Service Centers at various places in major cities of India.
Why obtain PAN?
A penalty of INR 10,000 is attracted in case of default by the taxpayer in complying with the provisions relating to PAN.
Why to surrender a double PAN card?
A penalty of INR 10,000 is attracted for having more than one PAN.
Tax Deduction and Collection Account Number
Tax Deduction and Collection Account Number (TAN) is a 10 digit alphanumeric number issued to persons who are required to deduct or collect tax on payments made by them under the applicable provisions of Indian Income Tax law. Each tax deductor is uniquely identified by a TAN.
TAN should never be quoted in the field where PAN is required to be quoted. The purposes for which PAN and TAN are allotted are different. TAN is a unique identification number which is allotted to persons who are deducting or collecting tax at source on behalf of the Income Tax Department. PAN is a unique number allotted to assessees like individuals, companies etc.
TAN is used by Income tax authorities to track all payments and filings by persons required to deduct tax at source and pay it to the Government. Assessee has to quote TAN in all his TDS payment, TDS return or any other communication with Income Tax Department in regard to Tax deduction/collection provision of Income Tax Act.
ICS can help you obtain your TAN quickly and hassle-fee.
What is TAN?
Tax Deduction and Collection Account Number (TAN) is a 10 digit alphanumeric number issued to persons who are required to deduct or collect tax on payments made by them under the applicable provisions of Indian Income Tax law.
What is Duplicate TAN?
Duplicate TAN is a TAN which has been inadvertently obtained by a same person who is responsible for deducting/collecting tax and who already has a TAN allotted to him earlier. It is illegal to possess or use more than one TAN. Different branches/divisions of an entity may, however, have separate TAN.
Who can obtain TAN?
Every person who is liable to deduct/collect tax as per Income Tax law is required to obtain TAN.
When should I file TDS returns?
TDS Return should be filed quarterly by the 15th day of the month following the relevant quarter.
How to Obtain TAN?
TAN be obtained by submitting application in prescribed form along with the related documents and prescribed fees at the TAN application center of UTIITSL or NSDL. An online application can also be made from the website of UTIITSL or NSDL.
How long does it take to obtain TAN?
TAN can be obtained within 10-15 working days from the date of submission of application along with the required documents
Where to apply for TAN?
Income Tax Department has authorised UTIITSL and NSDL to set-up and manage TAN. Service Centers at various places in major cities of India.
Why obtain TAN?
A penalty of INR 10,000 is attracted in case of default by the taxpayer in complying with the provisions relating to TAN. Also, non-compliances with respect to TDS attract many penal implications.
Service tax is levied under the Finance Act, 1994. Service tax is a consumption based indirect tax levied on provision of services (subject to prescribed exclusions and exemptions) in taxable territory. Service tax is not applicable on ‘export of services’, however, import of services are subject to service tax on reverse charge basis.
The Finance Act 2012 introduced a paradigm shift in the manner in which services are taxed in India. The transition involved shift from taxation of certain identified services (approximately 119 specific services) to a negative list regime whereby all services provided in the taxable territory are taxed unless they are covered by any of the entries in the negative list or are otherwise exempted.
The current peak rate of service tax is 14% (w.e.f 1 June 2015). However, the effective rate of service tax may vary depending on the nature of services, abatements and valuations prescribed under the applicable law. Service tax is payable on accrual basis, subject to certain exclusions.
ICS can help you obtain your service tax registration quickly and hassle-fee.
What is Service?
Service has been defined under the law to mean any activity carried out by a person for another for consideration. It also includes certain activities which have been specifically declared as service.
What is Taxable territory?
Broadly, India plus 200 nautical miles inside the sea minus Jammu and Kashmir is ‘taxable territory’.
What is reverse charge mechanism?
It refers to shift of responsibility to pay service tax on certain specified services (such as import of services, goods transport service, supply of manpower provided by specific persons etc.) from the service provider to the service recipient.
What are declared services?
nder service tax law, certain activities have been specifically deemed to be services and are known as declared services.
Who is responsible to pay Service tax?
Service tax being an indirect tax is collected by the service provider from the recipient of the service and subsequently deposited to the government treasury by the service provider. In case of services for which reverse charge mechanism has been prescribed the responsibility of depositing service tax has been shifted on the service recipient.
Who must obtain Service Tax Registration?
Service Tax registration is required in following cases:
- Service providers with value of taxable service more than 9 Lakhs in previous financial year
- Service recipient under reverse charge mechanism (without any threshold exemption limit)
- Service provider engaged in provision of exempted services/ export of services, who seek refund of unutilised input tax credit.
When to obtain registration?
Application for registration is required to be submitted electronically within:
- 30 days from the commencement of business or
- On crossing turnover of INR 9 lakhs or
- On receipt of services under reverse charge.
How to obtain registration?
Application for registration is required to be submitted electronically. Subsequently, signed and stamped hard copy of prescribed documents is required to be sent to jurisdictional officer by speed post.
How to pay service tax?
E-payment has been made mandatory for payment of service tax. However, input tax credit can also be used for payment of service tax except in cases of reverse charge.
Where should one obtain service tax registration?
There are two types of registrations one can obtain. A Single premise registration can be obtained where provision of services is from a single premise or each premise is managed separately for provision of services. Alternatively, a Centralised Registration can be sought where services are provided or received at multiple premises but are managed centrally. The same is relevant in deciding the concerned jurisdictional authorities.
Why should one obtain service tax registration?
Failure of registration may attract a penalty upto a maximum of INR 10,000.
Importer Exporter Code
Importer Exporter Code (in short IEC) is a ten digit number granted by Directorate General of Foreign Trade (‘DGFT’) under Ministry of Commerce and Industry, to any bonafide person/ company for carrying out import/export.
IEC forms the primary document for recognition by Government of India as an Exporter/Importer. On the basis of IEC, companies can obtain various benefits on their exports/imports from DGFT, Customs, Export Promotion Council etc. All importers and exporters must mention their IEC while clearing goods thorough customs. In addition to above, RBI has now requested persons engaged in import or export of services to mention IEC for foreign remittances in bank accounts.
IEC is not a tax registration and hence does not require any returns to be filed.
ICS can help you obtain your IEC quickly and hassle-fee.
What is IEC?
IEC number granted by DGFT to any bonafide person/ company for carrying out import/export transactions.
What to the pre-requisite for IEC?
PAN is a pre-requisite for grant of an IEC and only one IEC can be issued against a single PAN.
Who does not require IEC?
IEC is not required under the following circumstances:
- Import/export of goods for personal use, which is not connected with trade, manufacture or agriculture.
- Import/export by government ministries and departments, and certain notified charitable organizations.
When should one obtain IEC?
IEC should be obtained before carrying out any export or import of goods or services.
How to apply for IEC?
An application for IEC is required to be made in Aayaat Niryaat Form – ANF2A along with supporting documents and Banker’s certificate.
Where to apply for IEC?
An application for grant of IEC number shall be made by the Registered/Head Office of the applicant to the nearest Regional Authority of DGFT.
Why obtain IEC?
Eventhough IEC is not mandatory registration, the same is a must for importers and exporters of goods and services.