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Section - 206CC - Strengthening of PAN quoting mechanism in the TCS regime -

 

Under section 206AA tax is to be deducted at higher rate of 20% in case the deductee fails to give his PAN. In order to strengthen the PAN mechanism this section is inserted to provide-

 

a)    The person paying any amount on which tax is collectible shall furnish his PAN to the person responsible for collecting such tax.

 

b)   In case he does not, tax will be collected at twice the rate or at 5% whichever is higher.

 

c)    The declaration filed by him under sub section (1A) of section 206C shall not be valid unless the PAN is quoted.

 

d)   In case the declaration is invalid, the collector shall collect the tax in accordance with the provision of section 206C.

 

e)    No certificate under section 206C(9) shall be granted unless PAN is furnished.

 

f)     Where the PAN is invalid it shall be deemed that it has not been furnished.

 

The provision will not apply to non-resident who does not have PE in India.

 

The amendment will take effective from 1st April 2017.


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