Tan Registration Required
TAN (Tax Deduction and Collection Account Number) registration required in the following circumstances:
1. Tax Deduction at Source (TDS):
Entities or individuals who are responsible for deducting tax at source as per the tax laws are required to obtain a TAN.
TDS is applicable to various payments such as salaries, interest, rent, contractor payments, professional fees, etc. If you are making such payments and deducting tax at source, TAN registration is necessary.
2. Tax Collection at Source (TCS):
Entities or individuals who are responsible for collecting tax at source on certain specified goods or services required to obtain a TAN.
TCS is applicable to specific transactions, such as the sale of certain goods like liquor, timber, scrap, etc. If you involved in such transactions and collect tax at source, TAN registration is required.
3. Business Registration:
In some countries, TAN registration maybe a part of the overall business registration process. Entities or individuals starting a business or engaging in certain business activities may need to obtain a TAN as part of their registration with the tax authorities.
It’s important to note that the specific requirements and thresholds for TAN registration may vary between countries. It’s advisable to refer to the tax laws and guidelines of the respective country to understand the precise circumstances and thresholds under which TAN registration required.
In India, for example, TAN registration is mandatory for entities or individuals who are liable to deduct or collect tax at source. The registration requir before making any TDS or TCS transactions, and failure to obtain a TAN can attract penalties or consequences as per the tax laws.
To visit: https://www.incometax.gov.in
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