It facilitates the coordination of various documents involved in payment, assessment and demand of taxes as well as retrieval of information on the same. It is now mandatory for companies and individuals to quote their PAN number for most financial transactions in India.
The objective is collection of information and strengthening of database. In the absence of PAN, withholding tax rate of 20 percent would be applied. This is a routine business compliance with no strings attached. It may be noted that obtaining PAN is a procedural requirement merely for the purpose of tax withholding, without bearing on the final tax liability of the payee.
The non-resident payee retains an option to file tax return in India and claim excess taxes withheld by the payer of income. In that sense, the requirement to withhold higher taxes, at best, operates as 'retain and refund' mechanism. The applicants must use Form 49AA and should enclose the following documents along with the application, apart from the statutory fee as prescribed.
Copy of registration certificate of their country or Bank account signed by the issuing bank duly attested by Indian Embassy in the country where applicant is located. Copy of passport, duly attested by Indian Embassy in the country where applicant is located or copy of bank account statement in country of residence, duly attested by Indian Embassy in the country where applicant is located. Copy of registration certificate of their country duly attested by Indian Embassy in the country where applicant is located.
The copies of the documents mentioned above have first to be attested by the following authorities before submission for attestation to the High Commission Please click here to apply for a PAN online. Skip to main content Screen Reader Access. Particulars Indian citizen who at the time of application for PAN is located. Foreign citizen who at the time of application for PAN is located. Proof of Address Copy of passport or copy of bank account statement in country of residence.
