India: Further PAN Update
As you are doubtless aware from our previous updates, the prominence of India’s Permanent Account Number (PAN) program is on the rise. It is not possible to file a tax return or open a bank account without a PAN, making it indispensible for both Indian entities and foreign entities doing business with them.
As of April 8, all PAN applications must be submitted via the new forms prescribed by the Income Tax authorities. For foreign citizens and entities, the new Form 49AA is now in use. The changed rules apply only to new applications, and those already in possession of a PAN need not reapply.
Filing fees have also changed, and payments may no longer be made in cash. According to Royal Bank of India guidelines, all e-commerce transactions require a PIN, an obligation which includes all online PAN application payments.