One of my clients has a proprietorship business with an existing TAN registered in Kerala for TDS deduction.
The client has now started another business in Tamil Nadu under the same proprietorship (same PAN), but with a different business name and location.
Kindly clarify whether the client can use the same TAN for TDS deduction for both businesses, or if a separate TAN is required for the Tamil Nadu business.
In my view, since both businesses are under the same proprietorship and the PAN is also the same, the existing TAN can be used for TDS compliance of both businesses. A separate TAN is not mandatory merely because the proprietor has started another business in another State or under another trade name.
However, if the Tamil Nadu business is operating like a separate branch/location with independent payroll, vendor payments, accounting, and TDS return filing, then a separate TAN may be obtained for administrative convenience and branch-wise compliance control.
Therefore, legally one TAN should be sufficient for the same proprietor/same PAN, but practically a separate TAN can be considered if TDS compliance is decentralized for the Tamil Nadu unit.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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