Difference between TIN, TAN, VAT, PAN, DSC, and DIN
New three-letter words like TIN, TAN, VAT, PAN, DSC, and DIN become familiar to entrepreneurs establishing a new firm. For every entrepreneur or business owner, understanding the differences and meanings of these three-letter words is critical. The differences and meanings of TIN, TAN, VAT, PAN, and DIN are explained in this article.
Tax Payer Identification Number- TIN or VAT
The acronym TIN stands for Taxpayer Identification Number, and it’s also known as VAT, CST, or Sales Tax Number. A TIN is a one-of-a-kind number assigned by each state’s Commercial Tax Department. The TIN is an eleven-digit number that must be referenced on all VAT-related transactions. The TIN number is used to identify VAT-registered dealers, as well as for interstate sales involving two or more states.
Manufacturers, exporters, shopkeepers, dealers, eCommerce merchants selling items, and other firms selling goods or products require a TIN number or VAT registration.
Goods and Services Tax – GST or GSTIN
Since July 1, 2017, TIN or VAT has been replaced with GST. GST registration is necessary for all organizations that previously had a VAT or TIN registration. Furthermore, every firm that supplies products or services worth more than Rs.20 lakhs in a calendar year (Rs.10 lakhs in special category states) must register for GST.
GSTINs, or GST Identification Numbers, are issued to all GST-registered businesses.
Tax Deduction and Collection Account Number – TAN
Tax Deduction and Collection Account Number (TAN) is an acronym for Tax Deduction and Collection Account Number. It’s a ten-digit alphanumeric code given to persons who are required to deduct tax at source, or TDS. For firms deducting tax at source, a TAN number or TAN registration is required to be stated in TDS or TCS returns. A penalty may be imposed if TAN is not applied when it is required. TDS returns must be filed quarterly by the firm once the TAN has been obtained.
Permanent Account Number – PAN
The Permanent Account Number (PAN) is a ten-digit alpha-numeric identifying number assigned to each taxpayer, including businesses, individuals, trusts, HUFs, and foreign citizens. The Income Tax Department issues a PAN card or number. PAN cards are a vital form of identification for Indian citizens who want to register a business or LLP. The Income Tax Department primarily uses PAN to keep track of financial transactions that may have a taxable component. Many commonplace transactions, such as remitting high-value cash deposits, getting a loan, buying a house, and so on, now require a PAN.
Digital Signature Certificate – DSC
DSCs is an electronic format of permission that may be used to authenticate an individual’s identity in certain online transactions and files. In India, DSCs are primarily used by the Ministry of Commerce and Industry (ROC), the Income Tax Department, the Directorate General of Foreign Trade, the Employee Provident Fund, and E-Tenders. There are three types of digital signatures: Class 1, Class 2, and Class 3. Class 2 Digital Signatures are most commonly used when forming a company or filing tax returns, whereas Class 3 Digital Signatures are utilized when participating in E-Tenders.
Director Identification Number – DIN
A director identification number is a one-of-a-kind number that is provided to a corporation’s current or prospective directors and is required for registration. Designated Partner Identification Number (DIN) and Designated Partner Identification Number (DPIN) are two words that are interchangeable. A DPIN is required to register an LLP in India. The DIN normally contains all of the personal information about the person who is likely to be appointed to the position of Director. Only individuals are eligible to get a DIN. Both Indian and foreign individuals can obtain a DIN by providing proof of identification and address. The digital signature certificate (DSC) must be obtained first because it is required when applying for a DIN.
Rishiraj is a keen learner and eager to learn more about the financial world. As a content writer at Finaxis, he hopes to capitalise on his newfound inclination for technology and language.