If party has not furnished his PAN then you have to charge TDS at higher rate of 20%.
You can still file the TDS return mention PAN Not applied.
The only downside will be that your party will not be able to claim benefits of TDS deducted as same will not be linked to his form 26AS.
It is better for him to get a PAN and provide you.
chatCommentsThanks for your instant reply... - Radhakrishnan Subramanian