Sunday, February 5, 2023

PAN card as single business ID likely to get legal backing

The upcoming Budget 2023 is likely to roll out a legal and operational framework for adopting the permanent account number (PAN) as a single business identification. This will apply to all businesses securing approvals, a senior finance ministry official informed Business Standard.
At present, nearly 20 different identifiers exist at both the state and central levels and these are Goods and Services Tax Identification Number, Taxpayer Identification Number, Tax Deduction Account Number, Employees’ Provident Fund Organisation, Corporate Identification Number and so on.
The senior finance ministry official said that an enabling provision or clause may be introduced in the Finance Act, 2023 that will give “legal backing” for PAN to be sued as the primary identifier of an entity. This move will improve the ease of doing business.
Earlier, one working group, headed by an additional secretary (revenue) under the Ministry of Finance, had submitted its report end-December suggesting that this move should be implemented in a phased manner.
The BS report stated that the departments will be given one-year time year to implement the changes – that is they have a year to adopt PAN as the primary identifier for all kinds of clearances, registration, licenses etc.

SourceAGENCIES
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