Income tax - notice
This query is : Resolved
28 July 2011
Received notice from ITO regrding non availability of PAN in 27Q returns for FY 2009-10. What to do as foreign parties still do not have PAN. Please help its urgent.
Regards
Regards
31 July 2024
If you’ve received a notice from the Income Tax Officer (ITO) regarding the non-availability of PANs in the 27Q returns for FY 2009-10, and the foreign parties still do not have PANs, here’s a step-by-step guide on how to address the situation:
### **Steps to Respond to the Notice:**
1. **Understand the Notice:**
- Review the notice carefully to understand the specific issues raised. The notice likely mentions that PANs for foreign parties were not provided in the Form 27Q returns.
2. **Prepare a Response:**
- **Acknowledge the Issue:** Confirm that you have received the notice and understand the concern about the absence of PANs for foreign parties.
- **Explain the Situation:** Clearly explain why PANs for the foreign parties could not be provided. This could be due to the fact that foreign entities are not required to obtain PANs if they do not have a business or income in India.
3. **Provide Supporting Documentation:**
- **Tax Deduction Certificates:** Attach any tax deduction certificates (Form 16A) issued to the foreign parties, if applicable.
- **Correspondence:** Include any correspondence or documents showing that attempts were made to obtain PANs or explaining why PANs are not available.
4. **Submit the Response:**
- **Online Response:** If the notice was issued through the Income Tax Department’s online portal, you can respond directly through the portal.
- **Physical Submission:** If required, submit your response along with the supporting documents to the local tax office mentioned in the notice.
5. **Follow-Up:**
- **Confirmation:** Ensure that you receive an acknowledgment of your response from the tax office.
- **Check Status:** Periodically check the status of the notice to confirm that it has been resolved.
### **Detailed Points to Include in Your Response:**
1. **Introduction:**
- Mention the notice number, date, and reference to the Form 27Q returns for FY 2009-10.
2. **Reason for Non-Availability of PAN:**
- Explain that foreign parties, due to their nature of business and tax status, may not have PANs as per Indian regulations.
- Provide a clear rationale for why PANs could not be obtained or provided for these foreign entities.
3. **Tax Compliance Efforts:**
- Detail any steps taken to comply with the tax regulations, such as withholding tax, issuing Form 16A, or any communications with the foreign parties regarding their PANs.
4. **Documentation:**
- Attach any relevant documents that support your explanation, such as correspondence with the foreign entities, tax certificates, and any other supporting evidence.
### **Sample Response Letter:**
---
**Subject: Response to Notice Regarding Non-Availability of PAN in 27Q Returns for FY 2009-10**
Dear Sir/Madam,
Ref: Notice No. [Insert Notice Number] dated [Insert Date]
We acknowledge the receipt of the notice concerning the non-availability of PANs for foreign parties in the Form 27Q returns for FY 2009-10. We understand the concern and would like to provide the following clarification:
1. **Nature of Foreign Parties:**
The foreign entities involved in the transactions do not have PANs as they do not have any business operations or income in India that would necessitate obtaining a PAN. As per the regulations, PAN is typically not required for foreign entities unless they have income or business dealings in India.
2. **Compliance Measures:**
We have complied with the tax regulations by deducting tax at source as applicable and issuing tax deduction certificates (Form 16A) to the foreign parties. Copies of these certificates are attached for your reference.
3. **Supporting Documentation:**
- **Form 16A:** Copies of Form 16A issued for the respective transactions.
- **Correspondence:** Relevant correspondence explaining the foreign entities' PAN status and tax compliance.
We hope this explanation addresses the concerns raised in the notice. Please let us know if any additional information or documentation is required.
Thank you for your attention to this matter.
Sincerely,
[Your Name]
[Your PAN Number]
[Your Contact Information]
---
### **Additional Tips:**
- **Consult a Tax Professional:** If the matter is complex, it’s advisable to consult with a tax professional to ensure that your response is accurate and complies with all regulations.
- **Keep Records:** Maintain a copy of all correspondence and documents submitted in response to the notice for future reference.
By addressing the notice with a clear explanation and providing supporting documents, you can resolve the issue effectively.
### **Steps to Respond to the Notice:**
1. **Understand the Notice:**
- Review the notice carefully to understand the specific issues raised. The notice likely mentions that PANs for foreign parties were not provided in the Form 27Q returns.
2. **Prepare a Response:**
- **Acknowledge the Issue:** Confirm that you have received the notice and understand the concern about the absence of PANs for foreign parties.
- **Explain the Situation:** Clearly explain why PANs for the foreign parties could not be provided. This could be due to the fact that foreign entities are not required to obtain PANs if they do not have a business or income in India.
3. **Provide Supporting Documentation:**
- **Tax Deduction Certificates:** Attach any tax deduction certificates (Form 16A) issued to the foreign parties, if applicable.
- **Correspondence:** Include any correspondence or documents showing that attempts were made to obtain PANs or explaining why PANs are not available.
4. **Submit the Response:**
- **Online Response:** If the notice was issued through the Income Tax Department’s online portal, you can respond directly through the portal.
- **Physical Submission:** If required, submit your response along with the supporting documents to the local tax office mentioned in the notice.
5. **Follow-Up:**
- **Confirmation:** Ensure that you receive an acknowledgment of your response from the tax office.
- **Check Status:** Periodically check the status of the notice to confirm that it has been resolved.
### **Detailed Points to Include in Your Response:**
1. **Introduction:**
- Mention the notice number, date, and reference to the Form 27Q returns for FY 2009-10.
2. **Reason for Non-Availability of PAN:**
- Explain that foreign parties, due to their nature of business and tax status, may not have PANs as per Indian regulations.
- Provide a clear rationale for why PANs could not be obtained or provided for these foreign entities.
3. **Tax Compliance Efforts:**
- Detail any steps taken to comply with the tax regulations, such as withholding tax, issuing Form 16A, or any communications with the foreign parties regarding their PANs.
4. **Documentation:**
- Attach any relevant documents that support your explanation, such as correspondence with the foreign entities, tax certificates, and any other supporting evidence.
### **Sample Response Letter:**
---
**Subject: Response to Notice Regarding Non-Availability of PAN in 27Q Returns for FY 2009-10**
Dear Sir/Madam,
Ref: Notice No. [Insert Notice Number] dated [Insert Date]
We acknowledge the receipt of the notice concerning the non-availability of PANs for foreign parties in the Form 27Q returns for FY 2009-10. We understand the concern and would like to provide the following clarification:
1. **Nature of Foreign Parties:**
The foreign entities involved in the transactions do not have PANs as they do not have any business operations or income in India that would necessitate obtaining a PAN. As per the regulations, PAN is typically not required for foreign entities unless they have income or business dealings in India.
2. **Compliance Measures:**
We have complied with the tax regulations by deducting tax at source as applicable and issuing tax deduction certificates (Form 16A) to the foreign parties. Copies of these certificates are attached for your reference.
3. **Supporting Documentation:**
- **Form 16A:** Copies of Form 16A issued for the respective transactions.
- **Correspondence:** Relevant correspondence explaining the foreign entities' PAN status and tax compliance.
We hope this explanation addresses the concerns raised in the notice. Please let us know if any additional information or documentation is required.
Thank you for your attention to this matter.
Sincerely,
[Your Name]
[Your PAN Number]
[Your Contact Information]
---
### **Additional Tips:**
- **Consult a Tax Professional:** If the matter is complex, it’s advisable to consult with a tax professional to ensure that your response is accurate and complies with all regulations.
- **Keep Records:** Maintain a copy of all correspondence and documents submitted in response to the notice for future reference.
By addressing the notice with a clear explanation and providing supporting documents, you can resolve the issue effectively.
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