PAN No Requirement for Vendors

[JOHN SHANNEL]

We have vendors supplying agricultural products to a tune of Rs 5 lakhs an annum.

There dont have TIN number since VAT is not applicable.

We also dont deduct TDS since it is a purchase.

My query is whether the Vendor should give me his PAN Number. If he doesnt have a PAN number is there any problem for my company.

John 

 

[CA Rachit Agarwal]

There is no requirement for PAN as per the Income Tax Act, 1961 as purchase is not covered under Section 192B,  194C, 194E, 194I...........

However for the purpose of taking deduction and recognition of the person to whom the payment is made, identification proof to be ensured.

AI Summary

PAN requirement for vendors absent where purchases fall outside withholding rules; obtain identification proof for payee recognition. No statutory obligation exists to collect a vendor's PAN when purchasing agricultural products that are not subject to VAT/TIN and are outside the Act's withholding provisions; nevertheless obtain reliable identification proof of the payee for recognition and recordkeeping.