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 essential for any Entrepreneur or Business Owner. This article explains the differences and importance 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 known as VAT Number, 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. The TIN is used to identify dealers registered under VAT and is also used for interstate sales between two or more states.

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

Goods and Services Tax – GST or GSTIN

GST has now replaced TIN or VAT 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 particular category states) must 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 allotted to those who are supposed to deduct tax at source or TDS. TAN number or registration is significant for businesses deducting tax at source and must be quoted in TDS or TCS return. Failure to apply TAN when required can attract a penalty. Once TAN is obtained, the business must file TDS returns quarterly.

Permanent Account Number – PAN

A permanent Account Number (PAN) is a unique ten-digit alphanumeric identification issued to each taxpayer – Businesses, Individuals, Trusts, HUFs, Foreign Citizens, and more. The Income Tax Department gives a PAN card or numbers. A PAN card is an effective form of identity and is mandatory for Indian Citizens starting a company or LLP. PAN is mainly used by the Income Tax Department to 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 authorization format that serves as proof of an individual’s identity for certain online transactions and filings. DSCs are mainly used by the MCA (ROC), Income Tax Department, Directorate General of Foreign Trade, GST registration, Employee Provident Fund, and E-Tenders in India. Digital Signatures are classified into three classes – Class 1, Class 2, and Class 3

  • Class 1 Digital signatures are used to verify an email address associated with a person.
  • On 26-November-2020, The Controller of Certifying Authorities, India (CCA) issued guidelines that only class-3 Digital Signature Certificates (DSC) will be issued from 01-January-2021.
  • Class 3 Digital signatures are the most secure form of Digital Signature certificates used to establish the identity of the signee.

Class 3 Digital Signature can be used for the following purposes:

  • MCA e-filing
  • Income Tax e-filing
  • e-Tendering
  • LLP registration
  • GST applicaPersons can only obtain DINatBoth Indian, and Foreign Citizens can get DINnt
  • e-Biding
  • e-Auction and more

To purchase a Class 3 Digital Signature with ePass Token, visit IndiaFilings.com.

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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