Today we are talking about Documents Required for a Business Pan Card in India. Each business in india needs a business pan card. A PAN short for Permanent Account Number is a very crucial document for any taxpayer residing in India. It is a 10-character number consisting of alphabets and digits. PAN card fundamentals are particularized in the Income Tax Act of 1961. This number is exclusive to each cardholder and helps recognize the income tax payer. It is needed for individuals, partnerships, companies. It also used as an identity proof for a number of purposes in India.
Any corporate body performing business in India need to get a PAN card whether it is registered in India or abroad. Any individual person or Business entity participating 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.
Below, we have given a list of Business entities that are required to get a PAN card in India :
- Micro, Small Scale, and Large Companies
- Start-Up Business
- One Person Company
- Limited Liability Partnership
- Sole proprietorship
- Trusts or Society or Section 8 Company
- Private Limited Companies
- Foreign institutional investors
- Cooperative Societies
Why does your company need a PAN card?
The reasons as to why a Business should get a PAN Card are listed below as follows:
- It was made compulsory by the Indian Government under the Income Tax Act, 1961 that individuals, companies, Partnership or any other form of entities need to get a Pan Card.
- If the PAN Card is not made by the company or any other business entity then the government will impose withholding tax which can be at the rate of more than 30% of the total invoiced payment.
- Pan Card serves as a reference number for the Income Tax Department to track and record your financial transactions. It is required by the Business to quote its PAN Card Number on transactions and income tax document.
- Even if you are not eligible to pay taxes, it is compulsory to have Pan card.
- Business entities whether registered abroad or in India are needed to pay tax for businesses carried out by them and without the PAN, the government will deduct tax at the highest rate.
- Your Pan will help you during filing of income tax returns.
- Tax Registration Number (TRN) can be obtained only when the Business entity has a Pan Card.
How to get a PAN card for a company?
- You need to download the application form 49A from NSDL or any other supported Websites, Read and follow all the instructions for filling the form carefully, Fill in the application and provide all the required information, For the payment of the PAN Card fees you need to get a Demand Draft which needs to be drawn in favour of ‘NSDL – PAN’, Enter the details of bank draft which includes issuing bank, date of issue, and the demand draft number and The name and details of the Assessing Officer can be left blank.
- Once you finish filling the form, you need to download and print the form.
- Sign the form and along with it send all supporting documents to the PAN agent or broker you have selected.
- You can also send it directly to NSDL or any NSDL processing centers in India or you can make an online application for the Pan Card on NSDL Website.
- Note down the PAN card application number which will help you track the status of your application.The government can take around 5 weeks to issue and Dispatch you Pan Card to your registered address.
Documents Required for Getting a Business Pan Card in India are as Follows:
- School leaving certificate
- Matriculation certificate
- Degree of a recognized educational institution
- Depository account
- Credit card
- Bank account
- Water bill
- Property tax assessment order
- Driving license
- Electricity bill
- Telephone bill
- Depository account
- Credit card
- Ration card
- Employer certificate
- Voter identity card
- Rent receipt
- Copy of Certificate of Incorporation issued by the Registrar of Companies or ROC In India.
- Copy of Partnership Deed.
- In case of Limited Liability Liability Partnerships, Certificate of Registration issued by the Registrar of Firms will serve as a Legal Document.
- Copy of trust deed.
- Certificate of registration issued by Charity Commissioner.
- Copy of Certificate of Registration Number issued by Charity Commissioner or any other Competent or local Authority.
- any other document originating from any Central Government or State Government helpful in establishing Identity.
In carrying out a Business activity and formality in India, A Pan Card is needed so It becomes an important must-have for a Business owner and Owner must make all arrangements to get Pan card for itself and the business firm as soon as possible.