Ø
Non- furnish PAN number under TCS (Tax collection at source) by
collectee to collector will attract a higher rate of tax at the twice the rate
mentioned in the relevant section or at the rate of five percent whichever is
higher.
Ø
Mandatory quoting of PAN number in declaration filed under section
206C(1A)(Section 206: Profits and gains from the business of trading in
alcoholic liquor, forest produce, scrap, etc) (Declaration filed by resident of
india that the specified goods are to be utilized for purposes of
manufacturing, processing or producing articles or things or for the purposes
of generation of power and not for trading purposes, for exemption from tax
collected at source ). In case of invalid declaration, the collector shall
collect the tax at source at higher rate at the twice the rate mentioned in the
relevant section or at the rate of five percent whichever is higher.
Ø
Certificate for collection of tax at lower at (Section 206C(9))
shall not be granted unless it contains the permanent Account number of the
applicant.
Ø
the collector knows about the correct PAN of the collectee it is
also proposed to provide for mandatory quoting of PAN of the collectee by both
the collector and the collectee in all correspondence, bills and vouchers
exchanged between them.
Ø
that the collectee shall furnish his Permanent Account Number to
the collector who shall indicate the same in all its correspondence, bills,
vouchers and other documents which are sent to collectee.
Ø
where the Permanent Account Number provided by the collectee is
invalid or it does not belong to the collectee, then it shall be deemed that
Permanent Account Number has not been furnished to the collector.
Ø
to exempt the non-resident who does not have permanent
establishment in India from the provisions of this proposed section 206CC of
the Act.
It will be
applicable form 1st April,2017.
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