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?
JGM (Knowledge Sharer) 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
Shivdutt Pal 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?
sabyasachi mukherjee 24 September 2021
JGM (Knowledge Sharer) 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
Shivdutt Pal 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 🙏