Aadhaar and PAN are the documents that play an important role in the country. The linking process of PAN with Aadhaar is an important process. As declared by the Government of India, the Linkage process has been made mandatory, because the Government had given a lot of time to the resident to get their PAN card linked with Aadhaar. The Government had extended the due deadline several times. The previous final date was the 31st of March. However, keeping in mind the crisis that was faced by the residents, the Government of India decided to extend the date from 31st March to 30th of June which means the Government has given three more months to the applicants to link their both cards.
Permanent Account Number (PAN) plays an important role in the financial statements. You would not be able to make any transaction if your PAN card is blocked. And to unlock the card, you have to pay a huge amount of penalty which is approximately INR 10,000. Whereas, the new PAN card will be automatically linked with the Aadhaar card.
Currently, news has been reported that the Government has finally made it compulsory that the process of Identification of importers and exporters. Importers, exporters, and customs brokers will be required to complete Aadhaar authentication and PAN verification via the Customs common portal. Within 45 days of receiving the documents, Customs authorities will conduct physical verification of the address given in the principal place of business, as well as assess the person’s financial situation.
The government has made it necessary for fresh exporters, importers, and customs brokers to authenticate their identities, which includes incorporation documents, PANs, and Aadhaar numbers. Apart from this, they have to physically verification of their business location. The 2021 Customs Regulations also grant customs authorities the authority to conduct identity checks on current exporters, importers, and customs officers. Within 15 days of receiving notification of selection, the selected individual for verification must submit documents or information to the Customs authorities through the Common website.
Documents such as a certificate of incorporation, a declaration evidencing the selection of approved signatories, if applicable, a Permanent Account Number, a GST Identification Number, a bank statement, and an Income Tax Return are examples of these. One of the regulations said that an individual who begins a new import or export operation after the effective date of these regulations must provide the required documentation within 30 days of beginning the activity.
According to Abhishek Jain, an EY Tax Partner, the government recently enacted regulations under the GST law to recognize fictitious entities and prevent fake GST invoicing. Similar requirements have now been added to the Customs law, requiring new importers and exporters to pass through the identity verification process, which will include checking incorporation papers, Adhaar, and PAN (for individuals), Karta, MD, and so on), as well as a physical inspection of the business place.
Jain further addresses that In the event that default is found, goods clearance, drawbacks, refunds, and other services can be canceled. Furthermore, the Customs authorities have been given the authority to carry out this identity verification for existing players. In a nutshell, this is a smart step by the government in terms of preventing tax leakage, and with GST recovery on the rise thanks to the implementation of control regulations, it is hoped that these rules would also result in improved Customs duty collection.
However, the government must ensure that real taxpayers are not subjected to undue hardships. This verification will be carried out in accordance with current GST procedures, especially in relation to Aadhaar authentication and physical verification. Since these processes are clear and time-bound, compliant taxpayers will be able to continue receiving numerous customs benefits without difficulty said by the AMRG & Associates Senior Partner Rajat Mohan.