Learn how a foreign company can apply for a Indian PAN number online and reduce or claim withholding tax on their invoice payments.
We all know that PAN numbers are necessary for each and every citizen of India. In fact, they are mandatory as has been declared by the Government, but how many of us know that even foreign companies which want to do business in India need a Pan number? Just last year – in January, the Indian tax Authorities had made it compulsory for foreign remittances need to be revealed before their payment.
Apply PAN for a Company Online: http://www.pancardnri.com/
Not just that, everyone who is making an income – including companies- is required to provide a PAN number or a TAN (Tax Registration Number) to the people paying them. So it follows that it is necessary for companies to get PAN numbers too. What exactly is a PAN number?
A PAN number is basically a ten digit alphanumeric code which is assigned by the Indian Government and it is basically similar to the Social Security Number assigned to the citizens of the United States by their government. This number is basically a tool for the Indian Government to calculate the amount of taxes being generated in the country. Moreover, it is used to find out who is paying up on time and who isn’t. Now, it is a document which MUST BE OBTAINED by any foreign company which is interested in entering the Indian business world.
Is PAN Number required if the company is not registered Or incorporated in India (outside India)?
Simply put, if you don’t have a PAN number, you would have to pay higher rates of tax. The newest amendment to the Indian Income Tax Act formulated in 1961 states that all companies, LLCs, Limited Companies, LLPs and others which generate income in India or receive payment from any Indian companies need to have a Pan number.
If this number is not provided, the Indian government, as per the latest laws will deduct tax at the highest possible rates! Now that can turn out to be quite a costly affair. This PAN number should be present in all your correspondence, bills, vouchers and any other relevant documents that are exchanged between the payer and the recipient.
Company PAN Application Form Process
So it is best to apply for a PAN number immediately. But how does one go about it? Simple, you contact a broker. There are many such agents who provide services for obtaining a PAN number to foreign companies and entities whether they do or don’t have offices in India. Private brokers are extremely useful because they take all the hassle of standing in line and applying for a PAN number form out of your hands. Their services include:
- Provision of all the forms required, as well as all the instructions needed to fill them up.
- Instructions regarding all documents that needs to be provided during the time of application. These documents are required by the PAN department for verification purposes.
- Double checking of the filled in forms and sending them off to the relevant departments.
- Working in collaboration with the department to ensure that the documents get processed as fast and as smoothly as possible.
- Delivery of the document – PAN card- to the foreign office safely.
Private broker companies are recommended because they have contacts and sources who can make the entire process of obtaining a PAN number a relatively easy one.
Of course, you can definitely try getting this done on your own by obtaining the form online but the processing might take long and it may turn out to be quite an expensive affair. Moreover, you would be at a disadvantage, being a foreigner. So in order to get your PAN number, it is best to approach a private broker.