PAN Mandatory Transactions (Applicable from 1 Jan 2016)

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Various Situations

Situation1 
TRANSACTION OF SALE/PURCHASE OF ANY GOODS/SERVICES EXCEEDING ₹ 2.00 LAC PER TRANSACTION AND BUYER HAS PAN


Action Required
PAN of seller and buyer to be written on the invoice itself

Verify the pan of buyer by taking copy of PAN card

No other compliance/filing of returns required



<!--[if !supportLineBreakNewLine]-->Situation 2 (W.E.F January 1, 2016 Onwards)
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TRANSACTION OF SALE or PURCHASE OF ANY GOODS/SERVICES EXCEEDING ₹ 2.00 LAC PER TRNSACTION BUT BUYER HAS NO PAN


- Action Required


One time registration as reporting entity from Income Tax Department

PAN of seller to be written on the invoice itself

Form no 60 to be taken from buyer at the time of transaction with Id and address proof -KYC

A return in form no. 61 to be filed Half Yearly for such transactions (last date being 31st October for the half year ending September 30 and 30th April for the half year ending March 31. (since rules are applicable from January 1, 2016 hence first report in form 61 will be for the period January , 2016 to March 31, 2016.
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- Cash TRansaction of sale or purchase


TO BE REPORTED W.E.F. 01/04/2016


Situation 3


TRANSACTION OF SALE or PURCHASE OF ANY GOODS/SERVICES EXCEEDING ₹ 2.00 LAC PER TRANSACTION ON CASH BASIS EVEN THOUGH BUYER HAS PAN
- Action Required


One time registration to be obtained by seller as reporting entity from IT Department

PAN of seller and buyer to be written on the invoice itself

Verify the PAN of buyer by taking copy of PAN card

Annual Return in Form no. 61A to be filed latest by 31st May for the complete financial year 2016-17 onwards with Director/Joint Director of Income-tax (Intelligence and Criminal Investigation).
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Situation 4


TRANSACTION OF SALE OR PURCHASE OF ANY GOODS/SERVICES EXCEEDING ₹ 2.00 LAC PER TRANSACTION ON CASH BASIS AND BUYER HAS NO PAN

Action Required


One time registeration has to be obtained by seller as reporting entity from IT Department


PAN of the seller to be written on the invoice itself


Form NO 60 to be taken from buyer at the time of transaction with ID and Address proof 


A return in form 61 to be filed half yearly for such transactions( last date being 31st October for the half year ending September 30 and 30th April for the half year ending March 31. (since rules are applicable from January 1, 2016 hence first report in form 61 will be for the period January , 2016 to March 31, 2016


Annual Return in form 61A to be filed  latest by 31st May for the complete financial year 2016-17 onwards with Director/Joint Director of Income Tax (Intelligence  and Criminal Investigation)


BY Sheetal ( Member of Make Knowledge Free site)


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