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Eligibility of TAN

23 September 2021

Hello I am working as a travel agent so the first party asking me cut TDs Or collect tcs on sources so should I apply for TAN in sole firm?

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6 Replies

JGM (Knowledge Sharer) (443 Points)
Replied 23 September 2021

An individual is required to do TDS only if his turnover or gross receipts exceeds INR 1 crore (in case of business) / INR 50 lakhs (in case of profession). Hence, if you satisfy this condition, you need to deduct tax from eligible payments

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Shivdutt Pal (7 Points)
Replied 23 September 2021

Sir actually the function is that as a travel agent I buy a tickets from airlines or anywhere and sell to customer with adding some margin so this case first ask me to deduct our TDs due to enough amount which is eligible for deduction

But we are on initial stage of business like 9 months have done from commencement of business (sole proprietor) so in this case do we need to take TAN number to deduct TDs or have to talk with first regarding the threshold limit or something else?

Shivdutt Pal (7 Points)
Replied 23 September 2021

First means first party

sabyasachi mukherjee (27529 Points)
Replied 24 September 2021

You can deduct tds if you hv the TAN.
AN INDIVIDUAL HAVING PAN CANNOT DEDUCT TDS AS AN INDIVIDUAL.

JGM (Knowledge Sharer) (443 Points)
Replied 24 September 2021

The requirement of obtaining is only if you are liable to deduct tax. Based on the facts, it appears that the first party is stating you to deduct tax on their behalf and then remit it to you. In other words,

Company X has to pay Rs. 50,000 (presume) to you as commission

You would be collecting the money and after keeping your commission, sending the balance to Company X

Hence, it appears that Company X has asked you to deduct tax from Rs. 50,000.

Please confirm the above. If my understanding is correct, in that case you will have to deposit the taxes so withheld on behalf of Company X. The credit for TDS should be available to you

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Shivdutt Pal (7 Points)
Replied 24 September 2021

Actually you are right at someway but in my case there are tour operators who has to collect TCS over commission amount and over taxable + gst amount

And there is no limit threshold in case tcs collected by tiur operator or agent by travellers

Last year on 1st Oct Indian govt has made it mandatory to collect tcs on "overseas tour package"

But I need a one question to you can a

Sole proprietor obtain TAN by personal PAN and file TDs return ( it can possible) but you are more knowledgeable than us tell me should I obtain TAN number and collect tcs

And one reason to collect tcs is limited gross amount is crossed 1 lac from first party and we getting a margin about 7k to 8k can be collect tcs?

Because In this I got to know is considered only overseas tour package which is mandat by Indian govt

If you any suggestion for me about the all process or function please let me know

I'll more kind to you sir 🙏