Quote PAN, or else pay 20% tax: Taxmen to contractors
New Delhi, April 02: Not quoting the permanent account number (PAN) can cost the contractors and sub-contractors dear, as the budget proposal of taxing them at up to 20 percent instead of 1-2 percent comes into effect from Tuesday.
The provision, made in budget 2009-10, is applicable from today and is aimed at plugging the loopholes leading to tax evasion and compelling more and more people to obtain PAN.