Dear freinds,
As per the recent ammendments in 114B (r) of the Income tax act, PAN must be quoted for all the bullion purchases exceeding Rs.5,00,000/-. If a foreigner (Assumed that he does not have PAN) came to India and purchased gold or diamond excedding Rs.5,00,000/-, then what are the remedies.
or If a person does not have PAN, how can he comply the situation like above?
(For your information, Form 60 declaration is applicable for 114B(a) to (h) tranasactions)
intention of department for seeking pan details is to go in depth of the tax status of such person who has paid such amount.
if a foreigner has made transaction of such value, he has to submit the "forex encashment certificate" alongiwth his passport details and copy, or to pay in forex, also he can not carry more than 5000 dollers in cash, but he has to use Forex TC or remittence from his bank, so the transaction is established at source. (pan details furnishing is required only when payment is made in indian rupees)
in a nutshell department will get ensure that such sale is made to genuine person who is honest taxpayer otherwise the seller has to face the music as this transaction may be claimed bogus by department.
for the foreiner also ,FEMA will be applicable..
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