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Is TAN Compulsory for Every Business?

All businesses falling under the GST bracket are required to pay taxes and have to register for Tax Deduction and Collection Number (TAN). Any company filing for GST tax returns has to state their TAN under Section 203A of the Income Tax Act to avoid penalty charges of Rs.10,000. You can make TAN application online for a hassle-free registration.


Steps to fill online TAN application form

  • Go to the official portal of National Securities Depository Limited (NSDL). 
  • Select ‘Services’. 
  • Click on ‘Apply online’.
  • Go to ‘New TAN’. 
  • Choose appropriate item under ‘Category of deductors’. 
  • Fill in Form 49B appearing on your screen. 
  • Save acknowledgement screen containing the following information – 
  1. 14-digit acknowledgement number.
  2. Name and status of an applicant.
  3. Contact information and payment details. 
  4. Signature.

Print out of the acknowledgement form has to be couriered to the headquarters of NSDL. There are no documents required for TAN application; only stipulated forms have to be duly filled and submitted.

Knowing how to apply for TAN and following the procedure for successful registration helps businesses pay their GST dues easily.

Timely and hassle-free liability payments allow such companies to keep track of their annual profit generation, as well as ensure sound financial planning.

All profits realised can be disbursed to the respective owners or reinvested in the business to increase the annual sales volume.

Another method of increasing sales generation is to avail of short-term business loans. Such funds effectively increase the working capital available, which, in turn, leads to a higher turnover. Working capital loans can also raise the liquidity of a business, allowing them to meet all short-term liabilities instantly.

Increased working capital ensures higher sales during a seasonal demand. Such revenue generated has to be adjusted for GST and other due payments to reflect the profitability of a company.

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