Tds and tan

This query is : Resolved

C Senthil Kumar (Querist)
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24 November 2011 I have started a Proprietorship concern.

For my working capital I am taking loans from different people. I want to utilise part of the money in the share & Commodity Trading.

In this regard I have the following doubts:-
1. As a propritor whether I must apply for TAN on my own PAN.
or

new PAN on the Firm's name to be obtained and then TAN to be applied for.

2. While paying the interest is any TDS to be deducted?
(i) what is the percentage of TDS
deduction.

3. Is this loan/Interest payment attract Service TAX.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 November 2011 The share market is going down, however, I wish you all the best for starting the business. May this could be proved as an opportunity by you!!
.
Right now, you will be not requiring TAN.

.
Complete the first year. In case your turnover crosses the limit of 60 lacs this year , then only you will require to deduct TDS on interest from the next financial year.
.
However, if you employ a person, whose salary exceeds taxable limits, you may apply for TAN.

.
If you wish to apply right now, there is no problem as such.
However, on or after March 31, 2012, you may apply looking your turnover or gross receipts.

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Ravindra Srinivasa

Ravindra Srinivasa (Expert)
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25 November 2011 1. As a Proprietor, you need to apply TAN on your PAN.

No new PAN since you are the proprietor of the firm.

2. If your payment of interest per person per year exceeds Rs.5000-00, then TDS need to be deducted @ 10%.

3. No service tax since you are not rendering any taxable service.

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