Separate tan for branch of a company
This query is : Resolved
13 March 2012
Dear Sir,
Is it necessary to apply for a separate TAN for branch of a public limited company having branches in different states of India.
Regards
Sushil
Is it necessary to apply for a separate TAN for branch of a public limited company having branches in different states of India.
Regards
Sushil
13 March 2012
Dear Friends,
Please solve my queries as soon as possible.
Currently we have sole proprietorship business and don't have registration in service tax.
Now I received 7,00,000 Rs(Inclusive ST) against technical consulting services(professional Services) from one of my client after deducting TDS amount. I have received TDS Certificate also. so please advise me how i can able to claim my whole TDS amount as refund from Govt?
Please solve my queries as soon as possible.
Currently we have sole proprietorship business and don't have registration in service tax.
Now I received 7,00,000 Rs(Inclusive ST) against technical consulting services(professional Services) from one of my client after deducting TDS amount. I have received TDS Certificate also. so please advise me how i can able to claim my whole TDS amount as refund from Govt?
13 March 2012
how to report 3cd when amount s paid 1st, then accepted??
13 March 2012
@Sushil. There is no provision for having different TAN for each branch ,it is company option. even one TAN also you can deduct TDS all over India
Message likes :
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13 March 2012
@Trupti Patel: you need to file the Income tax return for the financial year. there you can show your income and TDS details and claim the Tax refund also. through filing Income tax return only can income tax refund can be claimed
Service tax not applicable up to the limit of Rs.10 lakhs
Service tax not applicable up to the limit of Rs.10 lakhs
13 March 2012
@Vasundhra: Query is not clear. please elaborate with details
23 July 2025
Let’s address both of your queries separately for clarity:
---
### ✅ **1. Is a Separate TAN Required for Each Branch of a Company?**
**Answer: No, a separate TAN (Tax Deduction and Collection Account Number) is ***not mandatory*** for each branch.**
However, the **need for multiple TANs** arises based on the **deducting location** and **administrative convenience**.
#### ✅ When to Apply for Separate TANs:
* If **TDS is deducted from multiple locations (branches)** and each **files TDS returns independently**, **separate TANs** are typically obtained.
* **Each TAN corresponds to one TDS return filing jurisdiction** (linked to Income Tax Office).
* Required when branches are in **different states** and function **autonomously for tax matters**.
#### ❌ Not Required When:
* If **TDS compliance is centralized** (all deductions and filings done by head office), then **only one TAN** (of the head office) is needed.
📌 **Legal Reference**:
Per **Section 203A of the Income Tax Act**, TAN is mandatory for every person deducting TDS, but it **does not prescribe branch-wise TAN unless operationally needed**.
---
### ✅ **2. Sole Proprietorship – Claiming TDS Refund Without Service Tax Registration**
You mentioned:
* You run a **sole proprietorship**.
* You provided **technical consulting services**.
* Received ₹7,00,000 (inclusive of service tax) and TDS has been deducted.
* You are **not registered under Service Tax**.
#### Here's what you should do:
1. **File Income Tax Return (ITR-3 or ITR-4)**:
* Show your **gross receipts** from consulting as **business/professional income**.
* Mention **TDS deducted** (as per Form 26AS or TDS certificate) in the **TDS Schedule**.
* Compute your **total taxable income** and tax liability.
2. **Claim Refund**:
* If your **total tax liability is less than TDS deducted**, the excess amount will be **refunded by the Income Tax Department** after processing your ITR.
* Refund is processed **directly to your bank account**.
3. **About Service Tax**:
* Since you **crossed ₹10 lakh**, you **should have registered under Service Tax** (as per laws before GST implementation in 2017).
* But since GST is now applicable (post-July 2017), this may only matter if your case is under scrutiny for old years.
🔁 If this is a **past transaction** (pre-GST), and you were **not registered**, then the service tax component becomes tricky — your client may be questioned during assessment.
---
### ✅ Summary
| Query | Answer |
| ------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------- |
| Separate TAN for each branch? | ❌ Not mandatory unless each branch deducts and files TDS independently. ✅ Useful for operational ease. |
| Can you claim TDS refund? | ✅ Yes, by filing ITR and declaring professional income. Refund will be credited to your account. |
| Concern about no Service Tax registration? | ⚠️ If before 2017 (pre-GST), then service tax registration was required above ₹10L turnover. May need to reconcile if assessed. |
---
Let me know if you need help drafting your **Income Tax return** or **applying for TAN**.
---
### ✅ **1. Is a Separate TAN Required for Each Branch of a Company?**
**Answer: No, a separate TAN (Tax Deduction and Collection Account Number) is ***not mandatory*** for each branch.**
However, the **need for multiple TANs** arises based on the **deducting location** and **administrative convenience**.
#### ✅ When to Apply for Separate TANs:
* If **TDS is deducted from multiple locations (branches)** and each **files TDS returns independently**, **separate TANs** are typically obtained.
* **Each TAN corresponds to one TDS return filing jurisdiction** (linked to Income Tax Office).
* Required when branches are in **different states** and function **autonomously for tax matters**.
#### ❌ Not Required When:
* If **TDS compliance is centralized** (all deductions and filings done by head office), then **only one TAN** (of the head office) is needed.
📌 **Legal Reference**:
Per **Section 203A of the Income Tax Act**, TAN is mandatory for every person deducting TDS, but it **does not prescribe branch-wise TAN unless operationally needed**.
---
### ✅ **2. Sole Proprietorship – Claiming TDS Refund Without Service Tax Registration**
You mentioned:
* You run a **sole proprietorship**.
* You provided **technical consulting services**.
* Received ₹7,00,000 (inclusive of service tax) and TDS has been deducted.
* You are **not registered under Service Tax**.
#### Here's what you should do:
1. **File Income Tax Return (ITR-3 or ITR-4)**:
* Show your **gross receipts** from consulting as **business/professional income**.
* Mention **TDS deducted** (as per Form 26AS or TDS certificate) in the **TDS Schedule**.
* Compute your **total taxable income** and tax liability.
2. **Claim Refund**:
* If your **total tax liability is less than TDS deducted**, the excess amount will be **refunded by the Income Tax Department** after processing your ITR.
* Refund is processed **directly to your bank account**.
3. **About Service Tax**:
* Since you **crossed ₹10 lakh**, you **should have registered under Service Tax** (as per laws before GST implementation in 2017).
* But since GST is now applicable (post-July 2017), this may only matter if your case is under scrutiny for old years.
🔁 If this is a **past transaction** (pre-GST), and you were **not registered**, then the service tax component becomes tricky — your client may be questioned during assessment.
---
### ✅ Summary
| Query | Answer |
| ------------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------- |
| Separate TAN for each branch? | ❌ Not mandatory unless each branch deducts and files TDS independently. ✅ Useful for operational ease. |
| Can you claim TDS refund? | ✅ Yes, by filing ITR and declaring professional income. Refund will be credited to your account. |
| Concern about no Service Tax registration? | ⚠️ If before 2017 (pre-GST), then service tax registration was required above ₹10L turnover. May need to reconcile if assessed. |
---
Let me know if you need help drafting your **Income Tax return** or **applying for TAN**.
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