Quotation of PAN transactions exceeding ₹ 2 lacs as per Rule 114B

[jai prakash]

Dear Experts

Please advise whether vendor will ensure his PAN or purchaser’s PAN in the bill at the time raising invoice.

Rule 114C of IT Act is given below for your kind refernce

Verification of PAN (Rule-114C)

2) Any person, being a person raising bills referred to at Sl. No. 5 or 6 or 18 of rule 114B, who, in relation to a transaction specified in the said Sl. No., has issued any document shall ensure after verification that permanent account number has been correctly furnished and the same shall be mentioned in such document, or as the case may be, a declaration in Form 60 has been duly furnished with complete particulars.]

Reference of section, rule case law will be helpful.

Regards

Jai Prakash

AI Summary

Vendors and purchasers must exchange PANs for transactions over 2 lakh rupees under Rule 114B of the Income Tax Act. A query was raised regarding whether a vendor should ensure their own PAN or the purchaser's PAN is included in the invoice for transactions exceeding 2 lakh rupees, as per Rule 114B of the Income Tax Act. Rule 114C mandates that any person issuing a document for specified transactions must verify and include the correct PAN or a Form 60 declaration. The response advised that both parties involved in the transaction should exchange their PANs to comply with the rule, a practice already adopted by companies following the amendment.