What is the Difference Between TIN, TAN, VAT, PAN, DSC, and DIN?

Tax Identification Number (TIN)

An entrepreneur or self-employed businessman or woman would require TIN while making goods purchases and sales. To apply for TIN, the proprietor would need to furnish the following documents:

• Identity proof of proprietor
• Address proof of proprietor
• Address proof of business
• PAN card of proprietor

Tax Deduction and Collection Account Number (TAN)

Business setups need to deduct several taxes at source. TAN is a ten-digit alphanumeric number which has to be quoted by the proprietor on TDS returns and payments and any communication on TDS with the income tax department. Not quoting TAN while filing TDS return with income tax department can be fined up to Rs 10,000. The proprietor also needs to furnish TAN at the bank and link it with a bank account where TDS payments are received. Without a TAN number, banks will not receive TDS payments into the proprietor’s business account.

Value Added Tax (VAT)

The VAT replaced sales tax in 2005, and 2017 VAT was replaced by Goods and Services Tax or GST. A VAT is an indirect tax that is charged on products and commodities by the suppliers of the product as they pass through the supply chain and acquire value. To do away with the cascading effect of tax and set up an integrated tax regime for the entire country, the central government introduced the GST tax regime in 2017. The new GST calculation software can be installed in the accounts system to calculate the tax amount payable and receivable on various goods, services, and commodities.

Permanent Account Number (PAN)

PAN is a unique ten-digit alphanumeric identification number issued to individual and group entities. There is the individual PAN and the business entity PAN. Any entity, whether individual or group, having financial transactions must have PAN. For setting up a business, the proprietor first needs to apply with individual PAN and after that apply for PAN for the business setup. In India, all bank accounts in the name of any entity have to be linked with PAN number of that entity.

Digital Signature Certificate (DSC)

Sign and seal on documents and correspondence is a regular feature of the business. Digital Signature Certificate apart from being time-saving comprehensively stores pertinent information of the user in condensed code form. DSC code contains information of:

• User basic details – (Name, pin code, country, email contact)
• Date of issue of Certificate of Incorporation of entity
• Name of DSC certifying authority

DSC is a legal signature stamp and accepted as the legal signature of the entity. DSC is issued by certifying authority for one or two years and should be renewed within stipulated time limits.

Director Identification Number (DIN)

DIN is eight digits unique identification number allotted to existing or newly appointed directors of a company by the central government of India. Once issued DIN comes with a validity of lifetime and need not be renewed. User may update details as and when applicable. A director is allotted only singular DIN even if he or she is the director of more than one company. If the director leaves a company and joins another, the same DIN remains applicable, and only new details need to be updated. DIN is used whenever the director’s signature is required on any returns or communiqué issued by the company.

To Conclude…..

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Difference Between TIN, TAN, VAT, PAN, DSC, and DIN FAQs:

1 Is it compulsory to get registration of a business to apply for TIN?

Registering a sole proprietorship business though has several benefits is not mandatory. You can apply for TIN with proof of identity, address and individual PAN card. Once TIN is obtained proprietor can open a current account for the business by providing the TIN number to the bank.

2. How to apply for TAN online?

You can apply for TAN online as well as offline. To apply for TAN online visit the NSDL website https://tin.tin.nsdl.com/tan/form49B.html

3. How does GST provide relief from the cascading effect of tax?

Under older tax regime if businessman sells a product A and charges a certain percentage of applicable tax on A, he incurs a certain tax amount outflow at the time of income tax returns filing. Under VAT he could not claim relief for taxes already paid by him to vendors for input materials bought for making product A. Under GST regime taxpayer businessman can deduct the taxes paid by him for the input materials. Thus GST application can reduce or streamline tax outflow of a businessman on the income tax returns filing.

4. For a business entity, what are the documents required to apply for PAN?

The form of business can be a sole proprietorship, partnership, joint-stock or company, and foreign company. The following documents would need to be furnished by the business entity at the time of applying for PAN in India: • Certificate of incorporation • Entity address proof • Indian embassy apostille (In the case of a foreign company not having an office in India)

5. How to apply for PAN online

Business entities and individuals can apply for PAN through online as well as offline mode. To apply online visit the NSDL website and download form 49A.

6. What are the types of DSC?

DSC can be for personal as well as official purpose. An individual can have both personal and official DSC. Business entities can apply for three classes of DSC depending upon the purpose, namely class 1, 2, and 3 DSC.

7. What documents are required for applying for DSC?

To apply for DSC, attach with the application form a photo identity proof and address proof.

8. What is the form for DIN application?

Form DIR-3.

9. What is the form for updating DIN?

Form DIR 6.

10. What is the form for DIN surrender?

Form DIR 5