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

Vendors Supplying Agricultural Products Worth Rs 5 Lakhs Annually Not Required to Provide PAN Under Income Tax Act, 1961 A user inquired whether vendors supplying agricultural products worth Rs 5 lakhs annually need to provide a PAN number, given that VAT is not applicable and TDS is not deducted on purchases. A chartered accountant responded that there is no requirement for a PAN under the Income Tax Act, 1961 for such purchases, as they are not covered under specific sections. However, it is advised to obtain identification proof for deduction purposes and to recognize the person receiving the payment.