Business PAN card is meant for any Business Incorporated Outside India. various forms
of Business can be a Company, a Partnership, a HUF and a Trust. Although trust is not a
Profit driven Business form but it is included under Business PAN card. All the above
mentioned forms of Business are generally governed by the laws of their respective
countries
Indian Income tax laws do not allow any Indian Resident/ companies to make payment to any Person/
Business registered outside India without deducting/ withholding taxes in India. Taxes are
generally withheld on the PAN of the respective person. So, withholding tax is a total waste
if any person do not hold PAN card. Once the taxes are withheld, any Business entity registered
outside India can claim benefit of taxes withheld but only if they hold Indian PAN card.
Unavailability of PAN at the time of tax withhoding attracts deduction at Higher rate.
Yes, there is Relief in tax withholding rate if one hold Indian PAN card.
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