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PAN on ticket purchase

VIkas (CA) (112 Points)

08 December 2009

Is taking of a PAN from customers paying in cash necessary in the Tour, ticketing & Travel Business.

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9 Replies

Prabeer (B. COM (H) CA & CS Final) (5484 Points)
Replied 08 December 2009

Pls explain ur query.

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VIkas (CA) (112 Points)
Replied 08 December 2009

My client is dealing in ticketing business. I.Tax dept. has asked the detail of its customers going abroad by paying in cash for tickets during FY with their PAN & Address

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)
Replied 08 December 2009

yes, if ITO asked, u hav to provide details.

VIkas (CA) (112 Points)
Replied 08 December 2009

My question is that is it nescessary in any section of I.Tax to take a Pan from person

who is paying in cash for tickets or any thing

CA Ayush Agarwal (Kolkata-Pune-Mumbai) (27186 Points)
Replied 08 December 2009

no, its not in ITax law, but if ur travel agency broker,than its ur duty to quote pan & dere address.

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Chirag Gogri (Ca) (76 Points)
Replied 08 December 2009

Refer Annexures to Rule 114. Master Guide to I.T Rules 2009- 16 Edition.... It is compulsory to quote Pan in all documents pertaining to economic or financial transactions notified from time to time by CBDT.. Eg. Payment in cash in connection with travel to foreign country of amounts exceeding Rs.25000...

So if they have to quote pan then automatically the travel agency will get Pan no...

Sec 139A(5)(c) read with rule 114B.

Sagar (Student) (142 Points)
Replied 08 December 2009

Yes If Department is asked then u have to prepare the detail of Customer........

Airody Manjunatha Alse (ca) (100 Points)
Replied 08 December 2009

As per the annexures to rule 114, (Master guide) it is necessary to quote the pan number to all the economic or financial transactioons. It is adviced to have the pan number of the party for high value transactions for safer side.

Sunil (Trader) (2611 Points)
Replied 08 December 2009

Foreign Travel payments in cash to travel agent, airline, purchase of currency exceeding Rs. 25000, Payment to Hotels over Rs.25000 at a time (by any mode) require PAN. Government can specify more transactions wherein you have to compulsorily quote PAN. If there is no PAN, you are liable to collect Form No. 60 that also requires a voter card, driving license or other identifying document to be attached.

Therefore if a person pays in cash and does not provide PAN when above 25000, you take signature on form 60 and attach xerox of his passport that he will in any case give for foreign travel. This will be sufficient to furnish to department if there is no PAN