A person must comprehend the fundamental differences between the TIN, TAN, PAT, DIN, DSC, and VAT before starting a firm. These three-letter terms are extremely important for any business owner to grasp since they will aid in understanding the compliance requirements when starting a business and engaging in any financial activity with the intent of profiting from it.
When applying for a personal loan, filing income tax returns, or deducting taxes, one must keep their documents in order. Most of these procedures require identification details, proof of address, proof of employment or business, and so on. all their client’s KYC identification documents have updated information. A single slip-up may halt the entire loan application process and may damage the relationship between customers and the lending institution you have partnered with. TIN, TAN, VAT, PAN, DSC, DIN, and Aadhar card numbers are not replaceable.
Information on TAN
TAN (Tax Deducted and Collection Account Number) is involved whenever a company is established and an employee is hired. The TAN is a number provided to employers/ individuals who are required by the Income Tax Act to deduct taxes on payments made by Businesses.
If a company doing TDS (Tax Deducted at Source) does not have a legitimate TAN, it will face serious legal consequences. Once a company has a TAN, it is the responsibility of the company to file TDS Returns every quarter.
Information on TIN/VAT
Taxpayer Identification Number (TIN) is the complete version of what was previously known as the VAT (Value Added Tax) / CST (Central Sales Tax) or Sales Tax Number. This number is provided by the Commercial Tax Department and aids in the identification of individuals and businesses who pay commercial taxes to the State Government. It is a one-of-a-kind eleven-digit number that must be used for all VAT-related Business Transactions.
In addition, it serves as a registration number for businesses that have registered with the VAT Office. This agency was in charge of interstate sales taxation before the implementation of the Goods and Service Tax (GST). As a result, the TIN or VAT applies to all types of commodities, including manufactured goods, export things, e-commerce items, and retail goods. The VAT or TIN has been superseded by the GST or GSTIN after the introduction of the GST (Goods and Service Tax) in 2017.
Information on DIN
A Director Identification Number (DIN) is a one-of-a-kind number assigned to an existing or future director of a corporation and required for registration. The terms Director Identification Number (DIN) and Designated Partner Identification Number (DPIN) are interchangeable. In India, a DPIN is necessary to register an LLP. The DIN usually comprises all of the personal information about the individual who is about to become a Director. Persons are the only ones who can receive a DIN. By giving proof of identification and address, both Indian and foreign citizens can obtain a DIN. Because the Digital Signature Certificate (DSC) is required when applying for a DIN, therefore it must be obtained first.
Information on DSC
Digital Signature Certificates (DSC) are an electronic format of permission that can be used to prove an individual’s identification in specific online transactions and files. In India, DSCs are primarily used by the Ministry of Commerce and Industry, the Income Tax Department, the Directorate General of Foreign Trade, E-Tenders, and the Employee Provident Fund (EPF).
3 types of DSC Class
- Class 1: It is used to keep e-mail communication secure. It verifies the user’s email address and name.
- Class 2: Class 2 certificates are mostly used for the Company Incorporation, Income Tax Return, E-filing, LLP (Limited Liability Partnership), and others.
- Class 3: Class 3 certificate is utilized for e-auction and e-tendering participation, It covers a wide range of topics, including contract forms, bid document submissions, and so on.
Information on PAN
The PAN (Permanent Account Number) is a ten-digit alphanumeric code that is used to identify every Indian Taxpayer. This number pertains to everyone in India, including individuals, Foreigners, Businesses, Trusts, and HUFs. It is a vital document that also functions as identification. It is provided by the Income Tax Department of India. Anyone who wants to start their own business must have a valid PAN Card. In addition, the IT Department uses this card to keep track of all financial transactions as well as the taxable portion of such transactions. In addition, this PAN Card is now necessary for big cash deposits, the acquisition of loans, and the purchase of immovable assets.
Difference between TIN, TAN, PAN, DSC, and DIN
TIN | TAN | PAN | DSC | DIN |
TIN stands for Tax Identification Number. | TAN stands for Tax Deduction and Collection Account Number. | PAN stands for Permanent Account Number. | DSC stands for Digital Signature Certificate. | DIN stands for Director Identification Number. |
Distinct states have different laws that apply to TIN. | The Law applicable to TAN is under section 203A of the Income Tax Act. | The law applicable to PAN is under section 139A of the Income Tax Act. | As per the Companies Act, 2013. | The Law applicable for DIN is under sections 153 and 154 of the Companies Act. |
Enterprises requesting VAT registration, such as exporters, manufacturers, traders, and dealers of products and services, must register for a TIN. TIN now replaced with GSTIN. | TAN is a ten-digit alphanumeric number issued by the Indian Income Tax Department to individuals who are obligated to deduct or collect tax on payments made under the Indian Income Tax Act, 1961. | PAN (Permanent Account Number) is a 10-digit identification number required by the Income Tax Department for anybody who conducts financial transactions or pays taxes. | Digital signatures are required for certain documents and transactions to be filed online. | DIN is a unique identification number reserved for the company’s current or upcoming directors. It contains personal information about them. |
TIN is issued by the Commercial Tax Department of the respective States. | TAN is issued by the Income Tax Department. | PAN is issued by the Income Tax Department. | It is issued by any licensed certifying authority, as per section 24 of the Income Tax Act, 2000. | DIN is allotted by the Central Government. |
Practice area's of B K Goyal & Co LLP
Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration | Copyright Registration | Patent Registration | Import Export Code | Forensic Accounting and Fraud Detection | Section 8 Company | Foreign Company | 80G and 12A Certificate | FCRA Registration |DGGI Cases | Scrutiny Cases | Income Escapement Cases | Search & Seizure | CIT Appeal | ITAT Appeal | Auditors | Internal Audit | Financial Audit | Process Audit | IEC Code | CA Certification | Income Tax Penalty Notice u/s 271(1)(c) | Income Tax Notice u/s 142(1) | Income Tax Notice u/s 144 |Income Tax Notice u/s 148 | Income Tax Demand Notice | Psara License | FCRA Online
Company Registration Services in major cities of India
Company Registration in Jaipur | Company Registration in Delhi | Company Registration in Pune | Company Registration in Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow
Complete CA Services
RERA Services
Most read resources
tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password | internal audit applicability | preliminiary expenses | mAadhar | e shram card | 194r | ec tamilnadu | 194a of income tax act | 80ddb | aaple sarkar portal | epf activation | scrap business | brsr | section 135 of companies act 2013 | depreciation on computer | section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration | 194o of income tax act | 270a of income tax act | 80ccc | traces portal | 92e of income tax act | 142(1) of Income Tax Act | 80c of Income Tax Act | Directorate general of GST Intelligence | form 16 | section 164 of companies act | section 194a | section 138 of companies act 2013 | section 133 of companies act 2013 | rtps | patta chitta