PAN, GST, TIN, TAN, DSC, & DIN are important for business owners, and it is important for every business owner to know the basic difference between these.
Let us have a look at each one of them:
PAN or Personal Account Number is a 10-digit number which is issued to every taxpayer. PAN is issued by the Income Tax Department. It is an important identity proof and is mandatory for the citizens of the country when starting with an LLP or a sole proprietorship.
A PAN is mainly issued to keep track of all the financial transactions of the individual. PAN is required for almost all the transactions like a business loan, purchasing a property, etc.
GST was introduced in 2017 and has replaced TIN and VAT. All of the businesses that have registered under TIN or VAT have to go for GST registration.
Businesses that are involved in the supply of goods and services of Rs. 20 lakhs or more are required to register for GST. Businesses that are registered under GST are provided with a GST identification number or GSTIN.
TIN or Tax Identification Number is also known as Value Added Tax is a unique number which is allotted by the state government. TIN is an 11-digit number which is compulsory when doing any VAT related transactions. This number identifies the sales done between 2 or more states or dealers who are registered under VAT.
TIN is mandatory for shopkeepers, manufacturers, dealers, and e-commerce businesses.
TAN or Tax Reduction & Collection Account Number is a 10-digit number allotted to individuals who are supposed to TDS (Tax At Source). TAN is required to be quoted in the TCS return or TDS.
If you require TAN and have not yet applied for it, you might be charged some penalty. And after you have obtained TAN, the TDS returns have to be filed quarterly by the business owner.
DSC or Digital Signature certificate is a type of electronic authorization and is used as an identity proof when doing online transactions. A DSC mostly is used by the Income Tax Department, the Directorate General of Foreign Trade, MCA, and EPF i.e., Employee Provident Fund.
DSCs are divided into 3 classes, Class 1, Class 2, and Class 3. Class 2 is used while registering companies and e-filing of the ITR (Income Tax Returns). Class 3 DSCs are required for e-tenders.
DIN or Director Identification Number is issued to the current director or to the future directors/director of the company.
DIN is required during company registration and LLP ( Limited Liability Partnership) registration.
DIN contains information which is related to the person who is becoming a director. Identity, address proofs, and DSC is mandatory while obtaining DIN and therefore, it must be obtained before.
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