PAN is basically a 10 digit alphanumeric number which is allotted to a company who applied for it. Such cards are allotted under the supervision of Central board of direct taxes (CBDT). It is similar to the social security number used in USA. The primary objective of a Permanent Account Number is to use it as an identification number for tracking all financial transactions that has a taxable component. Such process may also result in to prevention of tax evasion.
A company after its registration should apply for a PAN card to income tax department. Now a day’s its required for a foreign company to obtain a permanent account number if they are generating any income in India or receiving any payments from Indian companies.
In absence of Permanent Account Number the paying company will be forced to deduct TDS at a higher rate (i.e. 20%) than the normal applicable rate. So after getting PAN card from IT department it is the responsibility of the tax payers to provide PAN to the payer or deductor.
To apply for a pan card the company need to use form 49A. Such form (i.e. 49A) has to be signed by any of the authorized director with the company’s seal. You have places to put photos in the form, but for companies such photos are not required as it is not an individual. The authorized director need to sign in three places, one in the top left hand corner, one on the top right hand corner and the third one is in declaration section at the end of the form (You can see places their mentioned to put your signature).
In addition to the form 49A, you need to provide a photo copy of your certificate of incorporation duly signed by the authorized director.
Such forms can be handed over in any TIN FC nearer to your locality with Rs. 96 (Rs. 85+12.36% service tax) as processing fee for PAN application. Sun TIN FC cannot charge you more than this amount as it has been fixed as the processing fee for PAN card.
You can use online facility of NSDL for applying a PAN card for your company. Online facilities are provided by NSDL in India. You can avail this service and pay your processing fee of Rs. 96 through net banking or credit card. You can also make the payment by cheque or bank draft. You can make correction to your permanent account number details by either applying online through NSDL site or through any of the TIN FC.
