Any business entity doing business in India requires a PAN (Permanent Account Number) whether it is registered in India or not. Elucidate.

A Permanent Account Number (PAN) is vital document for any taxpayer. PAN number is unique to each cardholder and helps identify the income tax payer. PAN enables the department to identify/ link all transactions of the PAN holder with the department. These transactions include tax payments, TDS/TCS credits, returns of income, specified transactions, correspondence etc, and so on. It also serves as an identity proof for a large number of purposes. The Income-tax Act, 1961 was amended and Section 206AA, as inserted in 2009 by the Finance Act, now mandates all foreign parties too that provide or generate payment to a counterpart in India to provide their PAN. This includes not only individuals but also incorporations, companies, limited companies and any other form of entity. Therefore, as per the statutory requirements, any business entity doing business in India, whether it is registered in India or abroad, requires a PAN card. Equally, an individual which is engaged in a business with an Indian firm/entity requires a PAN card. Companies, regardless of whether they are registered abroad or in India, are required to pay tax for businesses carried out in India. Without the PAN, the government has the mandate to deduct tax at the highest possible rate. Therefore, a body corporate, company, firms other than LLP, One Person Company, LLP firm, Sole Proprietorship, Trusts, Corporations, Company with Limited Liability, Private Firms, other Associations, Foreign Institutional Investors (FIIs), Hedge Funds all are required to have a PAN card in India.