• PAN registration of firm

Facts of the matter:
1.There is a tenant at our property which is a confirmed Private Partnership firm.
2.The firm has not submitted proof of its place of business(document),as its an illegal document,but has bribed & managed to get registered.
3.It is not registered in TAN directory(confirmed by RTI).
4.It is running a fake engineering institution & has committed numerous crimes against various departments.
5.THE FIRM CLAIMS THAT IT HAS A PAN NUMBER & I HAVE HEARD UNOFFICIALLY THAT IT DOESNT HAVE ONE.
6.I submitted an RTI application with the following queries-
i)Whether the firm is registered with the IT department & has a PAN number or not?
ii)Date of registration
iii)Whether its a firm/company/etc(status of applicant)
iv)Type of business(source of income)
7.The ITO has rejected my application under Sec 8(1)J & has cited a Supreme Court Judgement-Girish Ramachandra Deshpande Vs CIC & stated that "INCOME TAX RETURNS & related documents & information are exempt.
8.What I fail to understand is,i)Where have I asked for RETURNS?(ii)I ve not even asked for PAN number,but only if the organisation HAS A PAN number or not (iii)Address of firm,nature of business,date of registration-are they secret or are they supposed to be public domain?(iv)In the judgement of the Supreme Court,as far as I see,it mentions about tax returns,BUT WHERE IS THAT "RELATED INFORMATION" phrase?I feel the ITO is deliberately hiding information.
Please suggest-
1.What steps to take to obtain information.What points to write in appeal countering the PIO.
2.Is not having a PAN number an offence for a partnership firm operating & doing financial transactions for last 20 years?What law/sections of law/IPC is this punishable under.
3.Can I obtain the PAN number(only the PAN number,not returns).How?
4.Can I obtain a copy of the proof of address submitted by the FIRM to the Registrar of Firms.If the proof of address of the firm isnt there,can it be registered?
5.Without a PAN & TAN number,what is the legal status of a Partnership Firm?
Asked 6 years ago in Taxation

13 answers received from multiple lawyers

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13 Answers

1) firm is bound to have PAN number

2) failure to obtain PAN is an offence under IT act

3)Failure to comply with the provisions of section 139A i.e., PAN [Section 272B]

(a) In case a person fails to comply with the provisions of section 139A i.e., to obtain PAN, the Assessing Officer may direct him to pay a penalty of Rs. 10,000.

(b) In case assessee quotes a false or incorrect permanent account number on any document and which he knows that it is false or incorrect, the Assessing Officer may direct Jum to pay a penalty of Rs. 10,000. Such penalty can be levied only after the person has been given an opportunity of being heard.

4) you can take search in regsitrar of firm office and obtain copy of address submitted by firm

5) ITO can refuse to disclose PAN number to you of the firm as it is confidential in nature

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

As per the Partnership Act, Registration of Partnership Firms is optional and is entirely at the discretion of the partners. The Partners may or may not register their Partnership Agreement.If the firm is registered then the Register of Firms maintained at the office of the Registrar of Firms contains complete and up-to-date information about each registered firm. Any person interested in viewing the details of any firm can request the Registrar of Firms for the same and on payment of the prescribed fees, a copy of all details of with Firm registered with the Registrar would be given to the applicant.

Registration with the Registrar of Firms is different from Registration with the Income Tax Department. It is mandatory for all firms to apply for Registration with the Income Tax Department and have a PAN Card..Pan card of the Partnership Firm is necessary to open a Current Account in the name of the Partnership Firm and operate all its operations through this Bank Account.More over filing INCOME TAX RETURNS & related documents PAN card is necessary. Every firm shall quote its permanent account number or General Index Register Number in all documents pertaining to the transactions .

As per income tax rules, multiple PAN cards are not allowed to individuals, companies, partnership firms or others, It is an offense to keep more than one card or fake PAN CARD In case a person fails to comply with the provisions of section 139A i.e., to obtain PAN, the Assessing Officer may direct him to pay a penalty of Rs. 10,000.under Section 272B of the Income Tax Act.

So from the above departments, banks, you can obtain the information about the Partnership firm .Application will file under RTI ACT.

Ajay N S
Advocate, Ernakulam
4072 Answers
110 Consultations

5.0 on 5.0

1. If the authorities refuse to divulge the information sought on presumed fake grounds, you can prefer an appeal against it with the the higher authority.

2. The income tax department may be approached for this who will issue notice and conduct raids if necessary.

3. You cannot have an access to the details of an individual or a private company from the authorities.

4. You can approach the registrar of firms with an application under RTI act.

5. Confirm the non-availability of PAN or TAN and then make a representation to the income tax and the sales tax department accordingly

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

file RTI with income tax department as to what action has been taken on your complaint

2)the provisions of Section 203A of the Income Tax Act, 1961 require all persons who deduct or collect tax at source to apply for the allotment of TAN. The section also makes it mandatory to quote TAN in all TDS / TCS / Annual Information Returns, payment challans and certificates to be issued. Deductor cannot file TDS / TCS statements and deposit challans for TDS / TCS payments in banks without TAN. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs.10,000/-.

3)Every company, firm or LLP compulsorily has to file tax returns, irrespective of doing business or not. Hence, obtaining PAN is mandatory. Secondly, it is also compulsory to quote PAN in all documents pertaining to financial transactions such as sale of purchase of immovable property, motor vehicle, time deposit, etc.

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

Is it possible to have a PAN number & not have a TAN for a partnership firm,because once you show returns,you have to quote the TDS deductions & show the TAN?

And is registration of a firm possible without PAN & TAN,or,is registration allowed without PAN & TAN,which can be obtained subsequently?If PAN & TAN are to be deposited later to registration,then within how much time

Your doubts are but natural.

If you are aggrieved over it you can take a direct action on it but since the government has been cheated only they can initiate any action in this regard, however you can make a representation to the concerned authorities in this connection.

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

section 8(1)(j) of The Right to Information Act, 2005 (RTI Act) states that a public authority has no obligation to disclose personal information of an individual if by so doing it would cause unwarranted invasion of the privacy of that individual or if the disclosure has no relationship to any public activity or public interest.

2) disclosure of PAN number would be exempted

3)however details as to status of firm , place of business can be disclosed

4) firm needs to have TAN number if it is deducting at source . it is mandatory requirement

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

1. Since this is personal details of an individual or a firm, it cannot be revealed in public to anyone.

Hence the rejection under section 8(1) of RTI act is justified.

2. Same as above.

3. This is the problem of the government to allow them to run the business or close it for the fault or violating the law, you may make a representation in writing about this serious issue.

4. You may prefer an appeal mentioning your grievances in the grounds for appeal.

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

1. On being denied the information sought, you have rights to prefer an appeal and also second appeal before the concerned authorities, why dont you try that.

2. The relevant rules of the company act may be referred i order to confirm that if this company should obtain TAN also for their business.

3. If at all there is a gross ignorance of the prevailing law in availing the benefits of the provisions for running the business, concerned authorities to be notified about it, they will initiate appropriate action as envisaged in law for the offences they detect the offender to have committed.

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

1) you can in RTI seek information whether firm has PAN or not

2) it is mandatory to have TAN under section 203,A of income tax act if firm is deducing tax at source

3) if firm fails the apply for TAN penalty of Rs 10000 can be imposed

4) for firm obtaining PAN is mandatory under provisions of section 272Bof income tax act

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

It is mandatory for firm to have PAN and TAN

2) filing of returns is mandatory for firm hence it needs to have PAN

3) obtaining TAN is mandatory for firm if they are deducting tax at source

Ajay Sethi
Advocate, Mumbai
94523 Answers
7486 Consultations

5.0 on 5.0

TAN is to be obtained by the person responsible to deduct tax, i.e., the deductor. In all the documents relating to TDS and all the correspondence with the Income-tax Department relating to TDS one has to quote his TAN.

So if as a partnership firm you have to deduct TDS then you will have to mandatoraly obtain TAN.

Regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

you will first have to register the firm and then on the basis of partnership deed and the registration certificate you ill apply for PAN and TAN.

regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

A partnership firm can be registered whether at the time of its formation or even subsequently. You need to file an application with the Registrar of Firms of the area in which your business is located.

Registration of partnership firm with the registration of forms is differnt to that the registration with the income tax department.

It is mandatory for all the firms to register with the income tax department and have a PAN card.

In a partner ship firm tds applicable from first day . One has to apply for tan and also deduct the tds as per income tax act.

The partnership firm has to quote the PAN and TAN while filing their returns.

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

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