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

PAN requirement for high-value sales: mandatory for vehicle and immovable transfers, securities, hospitality bills; identity checks for precious metals. PAN is mandatory for certain categories: sale of motor vehicles (excluding two wheelers) and immovable property regardless of amount; securities transactions and hotel/restaurant bills require PAN or identity details when statutory thresholds are met; anti money laundering rules extend identity and record keeping obligations to dealers in precious metals and precious stones. Ordinary retail sales generally require only the buyer's name and address to document the transaction.