PAN TO BE THE SINGLE IDENTITY FOR THE BUSINESS IN INDIA
As the every human has its own identity with the different identification just with that for doing business in India, PAN (permanent account number) should be stated the identity for the business spectrum. PAN is a code that acts as identification, especially for those who pay income tax, which is issued by Income Tax Department.
Within the year the central government intends to make the PAN as the business identification number for the companies and firms. PAN is mandatory for financial transaction such as receiving taxable salary or professional fees, sale or purchase of assets above specified limits, buy mutual funds and more.
With this, various intermediary processes will be nullified as the separate registration to the various departments (import, export, labours etc.). The proposal to make the PAN as the single identity is a strong move to provide flexibility and dynamic for new companies to emerge and for the hustle free works on the various new levels.
The single identity concept will help to each and every person who is being involved in business. Companies, regardless of whether they are registered abroad or in India, are required to pay the tax for the businesses carried out in the country. Without the PAN, government will deduct tax at the highest possible rate.
The level of business has risen that much now, with that the secure system should also be there. With the private company, if the company need to be registered, firstly they need to be registered with the Registrar of the companies, with that the CIN is to be allotted to them. Based on this,it applies for the PAN from the income tax department.
With it, that would be easy to obtain a common registration. It is a step toward a single-window clearance mechanism at the central level. The accomplished aim is doing away with the need for separate registration with the various departments for the companies in the business. The essence and the beneficial factor of PAN as the single identity for the business in India, the ease of doing business in improvised and clear manner which would facilitatesto free business spectrum.
Government is committed to making things easy for doing business, it means not only minimising or quickening the industry interface with the government and its agencies, but unveiling policy measures to create more business opportunities and an environment that makes investments less risky and more attractive. PAN to be the single identity for the business in India is termed with the ease of doing business.
Author: This blog is written by Ms. Deepshikha Dabi, a passionate blogger & intern at Aapka Consultant.
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