Tan no.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
28 July 2012
Dear expert,
In case of a Cement dealer (individual), who started business in FY 2011-12 and in the same FY his turnover was 1 caror 5 lacs. In this regard I have some following queries -
1. Whether he sould obtain TAN no. to deduct TDS on freight.
2. Whether he has to file form 26Q from the FY 2011-12 or he can stat from 1st quarter of FY 2012-13.
3. In case transporter providing his PAN, then 26Q is reqired to file or not.
Please advise me.
In case of a Cement dealer (individual), who started business in FY 2011-12 and in the same FY his turnover was 1 caror 5 lacs. In this regard I have some following queries -
1. Whether he sould obtain TAN no. to deduct TDS on freight.
2. Whether he has to file form 26Q from the FY 2011-12 or he can stat from 1st quarter of FY 2012-13.
3. In case transporter providing his PAN, then 26Q is reqired to file or not.
Please advise me.
02 August 2012
TDS provisions will be made applicable to him/her from financial year 2012-13. Preferably TAN be applied in the month of April 2012. If not applied, apply now.
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 August 2012
Sir, what are the results of non compliance of tds return. As there is no liabilty to deduct tds where transporter providing PAN printed on bilty. And penal provisions are depended on TDS amount.
26 July 2025
Here’s a detailed reply to your queries regarding **TAN, TDS on freight, and Form 26Q** for a cement dealer (individual):
---
### 🔹 **1. Is TAN required to deduct TDS on freight?**
Yes — **if TDS is required to be deducted**, the individual must **obtain a TAN** (Tax Deduction Account Number).
However:
* Under **Section 194C**, **no TDS is required to be deducted** on payment to a transporter **if the transporter provides a valid PAN** and furnishes a declaration (as per Rule 31A).
* If transporter **does not provide PAN**, TDS @ 20% must be deducted.
✅ **So:**
If **all your transporters provide PAN**, then **no need to deduct TDS**, and hence technically, **TAN may not be required**.
But if even **one transporter doesn't furnish PAN**, **TDS is required**, and **TAN becomes mandatory**.
---
### 🔹 **2. From when should Form 26Q be filed?**
* If TDS liability **arose in FY 2011–12**, and you deducted TDS — you must file **Form 26Q** for that financial year.
* If **no TDS deducted in FY 2011–12** (because all PANs were available), then **you can start from FY 2012–13** when required.
---
### 🔹 **3. If PAN is provided by transporter, is 26Q filing still required?**
* If **no TDS is deducted** (because PAN is provided), then **no need to file Form 26Q** for that transaction.
* However, to be fully compliant, it's a good practice to **maintain declarations and bills** showing PAN for your records, in case of scrutiny.
---
### ⚠️ **Non-compliance Consequences (if TDS was applicable and not complied):**
If TDS was required and:
* **TAN not applied** — ₹10,000 penalty u/s 272BB
* **TDS not deducted** — Disallowance of expense (30%) + interest
* **TDS deducted but not deposited** — Interest u/s 201(1A):
* 1% p.m. from date of deduction to payment (for non-deduction)
* 1.5% p.m. from deduction to deposit (for late payment)
* **TDS return not filed** — Late fee of ₹200/day (u/s 234E), max up to TDS amount
---
### ✅ Summary:
| Query | Answer |
| -------------------------------- | -------------------------------------------------------------- |
| TAN required if PAN is provided? | ❌ No, not mandatory if **all** transporters give PAN |
| Start filing Form 26Q? | From the **quarter TDS is first deducted** |
| File 26Q if PAN given? | ❌ No, if **no TDS deducted** |
| Risk of non-compliance? | ✅ Yes — if TDS was applicable but ignored (penalties/interest) |
---
Let me know if you want a **sample declaration format from transporter with PAN**, or help applying for **TAN online**.
---
### 🔹 **1. Is TAN required to deduct TDS on freight?**
Yes — **if TDS is required to be deducted**, the individual must **obtain a TAN** (Tax Deduction Account Number).
However:
* Under **Section 194C**, **no TDS is required to be deducted** on payment to a transporter **if the transporter provides a valid PAN** and furnishes a declaration (as per Rule 31A).
* If transporter **does not provide PAN**, TDS @ 20% must be deducted.
✅ **So:**
If **all your transporters provide PAN**, then **no need to deduct TDS**, and hence technically, **TAN may not be required**.
But if even **one transporter doesn't furnish PAN**, **TDS is required**, and **TAN becomes mandatory**.
---
### 🔹 **2. From when should Form 26Q be filed?**
* If TDS liability **arose in FY 2011–12**, and you deducted TDS — you must file **Form 26Q** for that financial year.
* If **no TDS deducted in FY 2011–12** (because all PANs were available), then **you can start from FY 2012–13** when required.
---
### 🔹 **3. If PAN is provided by transporter, is 26Q filing still required?**
* If **no TDS is deducted** (because PAN is provided), then **no need to file Form 26Q** for that transaction.
* However, to be fully compliant, it's a good practice to **maintain declarations and bills** showing PAN for your records, in case of scrutiny.
---
### ⚠️ **Non-compliance Consequences (if TDS was applicable and not complied):**
If TDS was required and:
* **TAN not applied** — ₹10,000 penalty u/s 272BB
* **TDS not deducted** — Disallowance of expense (30%) + interest
* **TDS deducted but not deposited** — Interest u/s 201(1A):
* 1% p.m. from date of deduction to payment (for non-deduction)
* 1.5% p.m. from deduction to deposit (for late payment)
* **TDS return not filed** — Late fee of ₹200/day (u/s 234E), max up to TDS amount
---
### ✅ Summary:
| Query | Answer |
| -------------------------------- | -------------------------------------------------------------- |
| TAN required if PAN is provided? | ❌ No, not mandatory if **all** transporters give PAN |
| Start filing Form 26Q? | From the **quarter TDS is first deducted** |
| File 26Q if PAN given? | ❌ No, if **no TDS deducted** |
| Risk of non-compliance? | ✅ Yes — if TDS was applicable but ignored (penalties/interest) |
---
Let me know if you want a **sample declaration format from transporter with PAN**, or help applying for **TAN online**.
24 February 2026
Contents noted. Thank you very much
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