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-
The person paying any amount on which
tax is collectible shall furnish his PAN to the person responsible for
collecting such tax.
In case he does not, tax will be
collected at twice the rate or at 5% whichever is higher.
The declaration filed by him under sub
section (1A) of section 206C shall not be valid unless the PAN is quoted.
In case the declaration is invalid, the
collector shall collect the tax in accordance with the provision of section
No certificate under section 206C(9)
shall be granted unless PAN is furnished.
Where the PAN is invalid it shall be
deemed that it has not been furnished.
will not apply to non-resident who does not have PE in India.
amendment will take effective from 1st April 2017.