PAN NO REQT FOR HIGH VALUE SALES

[Deepak Whorra]

Dear Experts,

 

We are often told that it is a requirement to obtain the PAN No details for all high value sales.

 

We are iin retail and would like some enlightenment on this : What is the thresh hold limit for retail sales above which it is mandatory/adviseable to obtain the Pan Number of the customer ?

 

I would be thankful for a reply which quotes the relevant section or rule no of the Income Tax or any other law .

 

Deepak

[CAGOPALJI AGRAWAL]

Deepakji

Pl. clarify in which business you are as the limit in some cases are as under i.e.PAN is must:

1. Sale of  motor vehicle (not 2 wheeler) - no limit

2. sale of immovable property - no limit

3. sale of securities (Rs 1.00 lac)

4.Billing in hotel or restaurants  Rs. 25000/-

Otherwise no such requirement in other sales except the name and address of the buyer to prove your transaction.

 

 

[Deepak Whorra]

Dear Mr.Agrawal,

 

Thank You for your reply.

 

I am in the business of retail/wholesale of Silverware/ silver jewellery and Handicrafts.

 

Besides the Income Tax law, I believe there is a recent addition where precious metal like Gold/Platinum/Silver/Palladium, and of precious Stones like diamonds, etc have been put in the Money Laundering Act . So there must be some rules in this regard for obtaining Pan Card/ other identity details above a certain thresh hold limit.

If you could enlighten me on this aspect, I would be gratewful

AI Summary

Retailer Seeks Clarification on PAN Requirements for High-Value Sales and Money Laundering Act Obligations for Precious Metals A retail business owner inquires about the requirement to obtain PAN numbers for high-value sales, specifically seeking the threshold limits applicable to retail sales. A tax expert responds, listing instances where PAN is mandatory, such as motor vehicle sales, immovable property, securities, and high-value hotel bills. The business owner, dealing in silverware and handicrafts, mentions potential obligations under the Money Laundering Act for precious metals and stones, seeking further clarification on these rules.