What is the penalty for non fulfillment of Requirements of quoting PAN under rule 114B of Income Tax Act?? and who is liable to pay the same i.e. the buyer or seller ?? For example if i purchase goods worth more than Rs. 2 Lacs and seller does not mention my PAN in the document pertaining to the transaction then what will be the penalty and who will be liable in it??
14 February 2016
Rule 114, A, B, C, of Income Tax Rule 1962 all arise on account of Section 139 A of the Income Tax Act which deals with Permanent Account Number (PAN) , its requirement and usage. The Penalty for violation of Section 139 A is provided in Section 272 B of the Income Tax Act 1961.
The provisions read that where a person fails to quote the PAN where required or quotes a wrong PAN he will punished with a penalty of Rs.10,000/- for each violation.
Coming to Rule 114B it say both for purchase and sale above the threshold the PAN should be quoted, therefore both the buyer AND seller are liable to quote their Pans and failure to do so will attract the penalty to the defaulter.
15 February 2016
If as the purchaser or seler you have disclosed your PAN and you have evidence to prove it, then no liability will arise on you. However, if there is no evidence you have to prove that you have not defaulted.
16 February 2016
If E.C.C number is mentioned in the invoice which includes the PAN of the client, than in such circumstances will Rule 114B be attracted ? Is PAN to be seperately disclosed in the invoice ?
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