New Delhi: In a move aimed at improving the ease of doing business for newly incorporated corporates, the tax department tied up with ministry of corporate affairs (MCA) to issue permanent account number (PAN) and tax deduction account number (TAN) in a day.

Companies submit a common application form on the MCA portal and once the data of incorporation is sent to the Central Board of Direct Taxes (CBDT) by the MCA, PAN and TAN numbers would be issued immediately without any further intervention of the applicant.

The certificate of incorporation of newly incorporated companies includes the PAN in addition to the corporate identity number (CIN).

TAN is also allotted simultaneously and information is conveyed to the company, a statement from the finance ministry said.

Data showed that till March 31, 19,704 newly incorporated companies were allotted PAN through this process.

During March, 2017, of the 10,894 newly incorporated companies, PAN was allotted within four hours in 95.63% cases and within one day in all cases.

Similarly, TAN was allotted to all such companies within four hours in 94.7 % cases and within one day in 99.73% cases.

The tax department’s initiative in starting of a business is expected to significantly improve the ranking of India in the ease of doing business survey conducted by the World Bank by reducing the number of processes of registration before various authorities, reducing the time taken for allotment of the registration number and making the entire registration process for new companies much simpler, the statement added.

Source: Times of India