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

When applying for a personal loan, filing income tax returns, or deducting taxes, one must keep their documents in order. Most of these procedures require identification details, proof of address, proof of employment or business, and so on. DSA agents must ensure that all their client’s KYC identification documents have updated information. A single slip-up may halt the entire loan application process and may damage the relationship between customers and the lending institution you have partnered with. TIN, TAN, VAT, PAN, DSC, DIN, and Aadhar card numbers are not replaceable. Here’s a quick guide on these different numbers, their purpose, and what they mean. 

What is TIN?

Tax Identification Numbers (TIN) are 11-digit unique numbers that are issued to businesses by the Indian Commercial Tax department. If any company is registered under VAT, they have to issue a TIN from their respective states’ tax departments. Issuing a TIN is a modern way of collecting, monitoring, and processing direct taxes. It is used when goods and services are sold or distributed within a state, or two or more states. When used for intra-state transactions, a TIN pin is also known as a VAT number. 

Who requires a TIN?

Traders, business owners, shop owners, dealers, manufacturers, and exporters require a TIN pin to sell or distribute goods and services within one or many states. 

Documents required for a TIN

When applying for a TIN pin, customers have to submit:

• Proof of identity like an Aadhar card, Voter ID, or PAN card
• Address proof like utility bills, passport, or driving license
• Six passport-sized photographs
• Business address proof
• Most recent three months’ bank transactions
• Purchase invoices
• A copy of the General Revaluation (GR) payment

What is TAN?

The Tax Collection Account Number (TAN) or Tax Deduction Account Number is a 10-digit pin, composed of alphabets and numbers, issued to those who collect or deduct taxes under Section 203A of the Income Tax Act of 1961. A TAN pin is required for TDS returns, challans, and other payments. If one fails to issue a TAN pin, one will be fined a penalty of INR 10,000. After a business owner obtains TAN, they must file TDS quarterly. Note that a business can only issue a single TAN pin, as it is illegal to hold 2 TAN pins. 

Who requires a TAN?

Organizations, trusts, individual branches of a company, and central, state and government authorities need TAN pins to collect or deduct tax at source. 

Documents required for a TAN

When issuing a TAN pin, one has to submit the following documents to the National Securities Depository Limited (NSDL).

• NSDL application form with all basic details
• 14-digit acknowledgment number that will be issued from the NSDL official website
• Application fees
• All other required documents specified on the NSDL website and the application form

What is VAT?

Value-added tax (VAT) or value-added tax identification number (VATIN) are unique identifiers to calculate the tax paid at every stage of a product’s making, from the sourcing of its raw materials to its delivery to the customer. It is the tax levied on the value of a product before it reaches the customers. The tax levied on every stage of a product’s production is used to reimburse the previous manufacturer in the chain, thus resulting in the tax being ultimately paid by the customer. Businesses acquire VAT pins because it adds a layer of authenticity and customers and suppliers tend to trust VAT-registered companies more. 

Who requires a VAT?

Every organization, business owner, shopkeeper, and trader actively involved in selling or distributing goods and services must acquire a VAT pin. Businesses must register for a VATIN from the time they commence sales if they believe their taxable income to exceed a threshold of INR 5 lakhs in a whole year. The threshold varies for different states. 

Documents required for a VAT

If one of your clients wants to undergo VAT registration, they have to submit the following documents,

• Trade license of the main branch of the business, its sub-branches, and warehouses
• PAN card of the company and its director and partners
• Proof of residence of the director of the company or its partners like passport, Election ID card, driving license, ration card, electricity bills, BSNL telephone bills, or Aadhar card
• Digital Signature Certificate (DSC) of class 2B for new registrations
• A copy of the first and last page of updated bank account statements of the director or partner of the company
• Legal proof of the occupancy of the physical branch of the institution, if any
• Deed of Partnership and Articles of Association
• Form 32 and 18 under the Companies Act of 1956, or the appropriate form under the Companies Act of 2013
• A signed and printed copy of Annexure A/B with self-attested photographs

What is PAN?

A Permanent Account Number (PAN) is a 10-digit pin, composed of alphabets and numbers, that is issued to all taxpayers and non-taxpayers of the country. If non-resident Indians (NRIs) earn taxable income in India, they must have to issue a PAN card. The PAN card is an identification proof that is required to make financial transactions, pay income taxes, and sell or buy properties and cars. 

Who requires a PAN?

Salaried and non-salaried individuals with a taxable income, students, tax-payers and non-tax-payers, foreigners with a taxable income, and foreign entities must apply to acquire a PAN card. It is an important proof of identity that comes in handy when applying for loans, buying assets, and so on. 

Documents required for a PAN

To apply for a PAN card, the following documents are required.

• Proof of identity like a passport, ration card, Aadhar card, photo ID card, driving license, 
• Proof of address like a post office passbook, utility bills, property tax assessment order, domicile certificate, passport, Government Health Service card, Pensioner card with the applicant’s photograph
• An identification certificate signed by a member of the Legislative Assembly, a member of the Parliament, a Municipal Councillor, or a gazetted officer. 
• Most recent bank transaction documents or a letterhead from your client’s bank branch with the stamp and name of the issuing officer. 

What is DSC?

Digital Signature Certificate (DSC) is a unique digital signature to be used on electronic documents to ensure the authenticity of those papers. It has been issued by the Information Technology Act of 2000. All documents processed by companies/LLPs under the MCA-21 e-Governance program must be signed by the respective DSCs of the holders. It has been specified by the Ministry of Corporate Affairs that if one has a DSC for any other purpose, one can use that to fill in the MCA-21 e-Governance form. When screening documents, you must ensure that your client uses their own DSC. It is illegal to use someone else’s DSC. 

Who requires a DSC?

DSCs are important for individuals, companies, and political parties, who file for e-verifications and whose accounts need to be audited under Section 44B of the Income Tax Act. 

Documents required for a DSC

You must directly contact Certifying Authorities (CAs) with all your client’s original supporting documents and self-attested copies of the same. If one does not supply supporting documents, CAs can issue their DSC with only their Aadhar eKYC-based authentication. A bank manager or a person with significant authority in a bank can issue a letter containing the applicant’s information to get their DSC. 

What is DIN?

A Document Identification Number (DIN) is only issued to newly-appointed directors in a company, upon submitting the DIR-3 according to Sections 153 and 154 of the Companies Act of 2013. Any individual, who is appointed as a director upon submitting form SPICe (INC-32) will be issued their DIN by the Central Registration Center. 

Who requires a DIN?

Only managing directors, directors, CFOs, and CFOs of an organization are required to sign form DIR-3 to obtain their DIN pin. The form DIR-6 must be signed and verified by a chartered accountant, cost accountant, or company secretary to verify the entire tenure of an applicant’s stint as a director in a firm. 

Documents required for a DIN

To apply for a DIN pin, the following documents need to be submitted.

• High-resolution photographs of the applicant
• Attested and original copy of the PAN card for an Indian national, and foreign entities, if they have a taxable income
• Attested photocopy of a foreign national’s passport for identity verification, if they do not have a PAN card
• Duly attested address proof (must not be older than 2 months)

If you want to succeed as a DSA loan partner, you have to be meticulous in screening through your client’s documents and ensuring that everything is in place. Salaried and non-salaried individuals seek out loan DSA agents to have a hassle-free experience while applying for a personal loan. It is imperative to know the above documents to guide your customers better. Become an Andromeda DSA loan agent and enjoy learning from the top loan professionals in the country. As an Andromeda loan agent, you will also be offering counsel on picking loan products along with guiding customers through every step of the loan application process.