The Centre is in talks to make the Permanent Account Number (PAN) an Aadhaar-like unique ID for businesses. The plan to introduce a unique identity for businesses was earlier announced by Finance Minister Arun Jaitley in his budget speech.
An official told this would help reduce the number of fake entities, NGOs, and shell companies as they would come under the scanner of government bodies.
If the development follows through, this would get the non-tax paying entities such as the not-for profits, trusts or societies, and other non-profit entities to apply for a PAN number.
Another government official added the directors, promoters and trustees of all the companies will be asked to furnish their individual PAN number as well.
The official said the evolution of the India’s corporate landscape would call for a single identity that makes it easier to carry out data linkage and track down other details.
Another government official stated the government is open to PAN being the unique identity for the companies.
The official added if India takes up to the Aadhaar as a national identity, there would no more be the need for the DIN (Director Identification Number).
He further said the Company Identification Number (CIN) being replaced by the PAN is also yet to be considered.
Experts said close to 20-22 crore entities would require a PAN registration. The logistics of this operation would not be as taxing as expected.
The report also quoted Sivarama Krishnan, the Executive Director of PwC. as saying the move will end up cleaning up the financial markets and the reduced the scope of operations for untraceable, unaccountable transactions.moneycontrol