04 August 2010
Dear Experts, If an assessee purchases sand whether the purchaser has to ask for PAN no. if the seller does not provides it means then whether sec.206AA will be attracted? Pls. provide me with the relevant notification or explanation. Reply is highly appreciated. With regards, Rajesh.
04 August 2010
Section 206AA is attracted only if person entitled to receive any sum or income or amount, on which tax is deductible under Chapter XVIIB and not on every payment which is made.
If TDS is deductible on a payment and if the person does not have a PAN then Section 206AA applicable not in all cases.
Since in your case is purchase of sand on which TDS is not deductible hence Section 206AA not attracted.
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