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Is PAN mendatory on invoice/bills?

A/c entries 10892 views 2 replies

jitender

Article

29 Points Joined August 2010

hiiiii,

I want to know whether PAN mendatory on Invoice or Bills?

and

What is the "Penalty" if we deduct TDS at normal rate instead of 20%.(if not mention PAN on bill)

Replies (2)

darpan chheda

Accounts Manager

90 Points Joined February 2009

According to the newly inserted sec 206AA , quoting of PAN is mandatory in all vouchers/bills/invoices & all other correspondence/communication between the deducter & the deductee. So, yes PAN is mandatorily have to be mentioned on the invoices/bills. To be on the safer side, it is better have the copy of PAN in your records from your vendors

If PAN copy is not available, penal rate of 20% is applicable on the transactions entered into with that party. Incase the same is not complied, we are liable to deposit short deposit of TDS along with interest @ 1.00% p.m for the default period.