TIN vs VAT, GST vs GSTIN, TAN vs PAN, DSC vs DIN - IndiaFilings

Difference between TIN, TAN, VAT, PAN, DSC and DIN

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Difference between TIN, TAN, VAT, PAN, DSC and DIN

Entrepreneurs starting a new business begin to hear new three letter words like TIN, TAN, VAT, PAN, DSC and DIN. Knowing the differences and meaning of these three letter words is important for any Entrepreneur or Business Owner. In this article, we explain the differences and the meaning of TIN, TAN, VAT, PAN and DIN.

Tax Payer Identification Number- TIN or VAT

TIN Number is expanded as Tax Payer Identification Number and is also know as VAT Number or CST Number or Sales Tax Number. TIN is a unique number that’s allotted by the Commercial Tax Department of each State Government. TIN is an eleven digit number and it is mandatory to mention this number on all VAT related transactions. TIN number is used to identify dealers who are registered under VAT and it is also used for interstate sales done between two or more states.

TIN number or VAT registration is a must for businesses selling goods or products like manufactures, exporters, shopkeepers, dealers, ecommerce sellers selling goods, etc.,

Goods and Services Tax – GST or GSTIN

TIN or VAT has now been replaced by GST from 1st July 2017. All entities who had VAT or TIN registration are mandatorily required to obtain GST registration. Further, any entity involved in the supply of goods or services with a value of more than Rs.20 lakhs in a year (Rs.10 lakhs in special category states) are required to obtain GST registration.

All entities registered under GST are provided with GSTIN or GST Identification Number.

Tax Deduction and Collection Account Number – TAN

TAN stands for Tax Deduction and Collection Account Number. It is a ten digit alphanumeric number thats allotted to those who are supposed to deduct tax at source or TDS. TAN number or TAN registration is very important for businesses deducting tax at source and is required to be quoted in TDS or TCS return. Failure to apply TAN when required can attract a penalty. Once TAN is obtained, TDS returns must be filed quarterly by the business.

Permanent Account Number – PAN

Permanent Account Number (PAN) is a unique ten digit alpha numeric identification that’s issued to each taxpayer – Business, Individuals, Trusts, HUFs, Foreign Citizens and more. PAN card or number is issued by the Income Tax Department. PAN card is extremely important form of identity and is mandatory for Indian Citizens starting a company or LLP. PAN is mainly used by the Income Tax Department to keep a check on financial transactions that could carry a taxable component. PAN is now required for many mundane transactions like remitting high value cash deposits, obtaining a loan, purchasing a property and more.

Digital Signature Certificate – DSC

Digital Signature Certificates (DSC) is an electronic format of authorization and serves as proof of identity of an individual for certain online transactions and filings. DSCs are mainly used by the MCA (ROC), Income Tax Department, Directorate General of Foreign Trade, Employee Provident Fund and for E-Tenders in India. Digital Signatures are classified into three classes – Class 1, Class 2 and Class 3. Class 2 is the most popular used while registering a company or for filing of income tax returns; whereas, Class 3 Digital Signatures are used for participating in E-Tenders.

Director Identification Number – DIN

Director identification number is a unique number issued to existing Director or a Future Director of a Company and required for company registration. DIN and Designated Partner Identification Number can be used interchangeably. DPIN is required for registering a LLP in India. DIN typically contains all the personal information of the person becoming a Director. DIN can only be obtained by persons. DIN can be obtained by both Indian and Foreign Citizens by submitting identity and address proof. DSC is mandatory while applying for DIN, therefore digital signature certificate (DSC) must be first obtained for obtaining a DIN.

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