TAN - Accure Tax Consultant

TAN

Tax Deduction and Collection Account Number (TAN) is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. It is mandatory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.

Frequently Asked Questions

Question 1: Who must apply for TAN?

Answer 1: All those persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN.

Question 2: Why to apply for TAN?

Answer 2: The provisions of section 203A of the Income-tax Act require the persons who deduct or collect tax at source to apply for the allotment of a TAN. The section also makes it mandatory for TAN to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. Unable to apply for TAN or comply with any of the other provisions of the section is liable a penalty of Rs.10,000/-.

Question 3: Why is it necessary to have TAN?

Answer 3: TAN is required to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. TDS/TCS returns will not be received if TAN is not quoted and challans for TDS/TCS payments will not be accepted by banks. Failure to apply for TAN or not quoting the same in the specified documents attracts a penalty of Rs. 10,000/-.

Question 4: How to apply for TAN?

Answer 4: An application for allotment of TAN is to be filed in Form 49B and submitted at any of the TIN Facilitation Centres meant for receipt of e-TDS returns. Addresses of the TIN FC are available at www.incometaxindia.gov.in or http://tin.nsdl.com.

Question 5: Who will allot TAN?

Answer 5: TAN is allotted by the Income Tax Department on the basis of the application submitted to TIN Facilitation Centres managed by NSDL. NSDL will intimate the TAN which will be required to be mentioned in all future correspondence relating to TDS/TCS.

Mandatory registration

Those paying tax under the reverse charge mechanism (RCM)
Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person
Persons doing any inter-State taxable supply
Casual taxable persons making taxable supply
Person who are required to pay tax under sub-section (5) of section 9
Non-resident taxable persons making taxable supply
Persons who are required to deduct tax under section 51, whether or not separately registered under this Act
Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise
Input Service Distributor, whether or not separately registered under this Act
Persons who serves supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator
Who is required to collect tax at source under section 52
Every electronic commerce operator

Penalty for not registering under GST

According to the section 122(1)(xi) of CGST Act, 2017 any taxable person who fails to register under GST even if he/she is legally bound as per the GST Act needs to pay the following amount of penalty
As per section 122(2)(a) for any reason, other than the reason of fraud or any wilful misstatement or suppression of facts to evade tax, shall be liable to a penalty of ten thousand rupees or ten per cent. of the tax due from such person, whichever is higher.
Otherwise as per section 122(2) (b) is 10,000 INR or amount of tax evaded whichever is higher.

Penalty for not registering under GST

PAN card of business
Proof of business registration or incorporation certificate
Identity and Address proof of Promoters/Director with photographs Photographs and address proof of persons in charge
The business’ address proof
Bank account statements/cancelled cheque
Aadhaar card if applicable
Digital Signature
Letter of Authorization/Board Resolution for Authorized Signature