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Tan account number for different jurisdiction compulsory?

Benz Chell (Manager-Finance&Programme) (64 Points)

09 March 2013

Hello experts,

TAN is required for branches/divisions having different Jurisdictional locations, which I am sure. But would that be compulsory in case if books of accounts maintained by HO in another jurisdiction already having TAN?

Assuming payment is not done by the branch in another location which has operational bank account locally.

What is the intention of IT dept. to issue TAN account jurisdiction basis?

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8 Replies

CA.Satyaranjan Jena (Service) (267 Points)
Replied 09 March 2013

TAN has to be taken for each state wise

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CA.D.RAGAVAN (CHARTERED ACCOUNTANTS) (219 Points)
Replied 09 March 2013

If no Financial Transaction in the Branches and all Payments are effected only in HO, Then No TAN is required for Branches

Benz Chell (Manager-Finance&Programme) (64 Points)
Replied 09 March 2013

Thank you ragavan sir. My view was also the same. But What is the intention of IT dept. to issue TAN account jurisdiction basis?

For ex. a branch/shop in different jurisdiction (even in same state), may have deposit their selling proceeds at the local bank account. & lets assume payments are done by branch, but books of accounts maintained by HO.

In such case, should they have separate TAN? (since financial Transactions are there, but no books of accounts)

CA.D.RAGAVAN (CHARTERED ACCOUNTANTS) (219 Points)
Replied 10 March 2013

TAN is Not issued by the Income Tax Department by itself. It is allotted on Application in From 49B. Hence, the Branches which are not liable to TDS need not apply. The ITD is not insisting that all Branches to obtain TAN