PAN of both seller/ vendor and customer needs to be mentioned on invoice w.e.f. 01.10.2021 | What is the truth?

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The following message is being circulated in various professional groups:

“Please take a note of one more compliance in Income Tax Act, 1961:

In compliance with Section 139A(5)(c) of the Income Tax act all the sellers raising an invoice of INRs 200000 or more should display the 10 digit PAN number (of both vendor as well as a customer) on each such invoice as a separate field.

This is with effect from 1st October 2021
In other words, in addition to GST number, you have to separately display your as well as your customers PAN number.

THANKS AND REGARDS”

In the above mentioned message it is being said that a person has to mention PAN of both vendor and buyer in case of raising of invoice of Rs. 2,00,000 or above w.e.f. 01.10.2021.

However, there has been no notification or circular to support such claim done in the message.

Also, if we check section 139A(5)(c) read with rule 114B we find that w.e.f. 01.01.2016, it was mentioned at S. No. 18 of rule 114B that:

“Sale or purchase, by any person, of goods or services of any nature other than those specified at Sl. Nos. 1 to 17 of this Table, if any. Amount exceeding two lakh rupees per transaction:”

Thus, it can be said that such requirement has been there in the Income tax act from past many years and no new provision/ requirement has been introduced by Income tax department as mentioned above.

To read notification incorporating Rule 114B in Income tax rules for quoting of PAN in invoice: CLICK HERE.

Penalty for failure to quote PAN in invoice could be Rs. 10,000 under section 272B as under:

“272B. (1) If a person fails to comply with the provisions of section 139A, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of ten thousand rupees.”

You can book phone consultation/ assistance online with expert as mentioned below:

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