Budget 2011: ASSOCHAM recommends PAN for payments in Hotels/Restaurants

ASSOCHAM on its pre-budget memorandum has given the following recommendations for the Hotel industry.

By Agencies | Feb 08, 2011, 12.31 PM IST

ASSOCHAM on its pre-budget memorandum has given the following recommendations for the Hotel industry.

Direct Tax issues pertaining to the Hotel Industry

PAN for payments in Hotels/Restaurants

Recommendations: ASSOCHAM has recommended that Under Rule 114B of the Rules, PAN number is required for all payments exceeding Rs 25,000 in hotels and restaurants. This requirement should be dispensed with in case of payments made through credit cards.

This clause may be continued but its applicability can be restricted to hotels and restaurants for only cash payments above Rs 25,000. Alternatively, the limit can be enhanced to Rs 100,000.

ASSOCHAM says that most persons pay by credit card and it becomes a huge problem to collect PAN number in all instances. It is suggested that PAN number can be collected at the time of grant of credit cards and automatically the information can be collated in a routine manner from credit card companies for expenditure above a stipulated amount.

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