In the Union Budget, Finance Minister Arun Jaitley announced to turn PAN (Permanent Account Number) Card into the enterprise unique ID.
According to an official, turning PAN card into an enterprise unique ID will bring down the number of fake entities, NGOs, and shell companies as they would under the scanner of government bodies.
They also added that all the promoters, directors, trustees of the companies to provide their individual PAN number as well.
This move would help to convey data linkage and also to track down other details as well. Hence, it is clear that Government is open to PAN being the unique identity for the companies.
One of the official stated that
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.
They also said that
if India takes up to the Aadhaar as a national identity, there would be no more be the need for the DIN (Director Identification Number).
However CIN (Company Identification Number) would be replaced by the PAN (Permanent Account Number) or not is yet to be considered.
According to the sources,
20 – 22 crore entities would require a PAN registration. The logistics of this operation would not be as taxing as expected.
Sivarama Krishnan, the Executive Director of PWC said
the move will end up cleaning up the financial markets and reduced the scope of operations for untraceable, unaccountable transactions.
Making PAN into the enterprise Unique ID will be the most favourable option. With the help of this move, even the non – tax paying entities such as not for profits, trusts or societies will have to now apply for a PAN number. It is also has been suggested that this PAN number or the unique identity can be linked with the Aadhaar Card number at the backend.