Tds applicability

TDS 300 views 2 replies

Tarun Malhotra

Prop

21 Points Joined January 2013

I am a Proprietor of a interior firm based out in Noida UP. Till las financial year my turnover was not enough to qualify for TDS on the payments i make to sub contractors.

From this year onwards i am expecting my turnover to cross 1 cr and hence my books will need to be audited and i am liable to deduct TDS on all the payments i will make to my sub contractors.

My parent firm is registered in Noida UP, but since I am working on a project in Mumbai, Maharashtra, i have one more proprietorship fiirm registered with GST in Maharashtra.

My questions is as follows

1. Do i need to take seperate TAN for both of my firms? or should i apply for TAN with jurisdiction as Noida, UP and use it for deduction of TDS for the payment made to contractors working for me in Mumbai for my Mumbai firm?

Thanks and regards

Tarun

Replies (2)

Ashish Bansal

1036 Points Joined February 2008

Dear Mr. Tarun,

I understood followings from your query;

1. You have two proprietorship firms. One in noida and another in Mumbai.

2. Both firms are having sale rate GST number based upon ur individual PAN.

3. Both firms are in to same line of business.

4. You are liable to deduct tds under income tax act.

your query is about whether to have saperate TAN for both places or to have single TAN for ease of compliance.

My opinion:

TDS is a central law so it does not affect Govt from which place you make compliance. However, It also depends upon how you are maintaining your books.

In case separate books are are maintained for both the locations, which I believe would be the case keeping in view GST compliance u are meeting, you may go for separate TAN for Mumbai as place/branch of existing business and the compliance should be done separately.

In case single books of accounts are maintained at HO level, you can take single TAN registration and comply from the HO.

You should consider that more registrations need failureless compliance for all registration and the notices/ explanation comes from different wards wherein you are registered under TAN.