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Guilherme Mazui

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What is the Difference Between TIN and TAN?

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The main difference between TIN and TAN lies in their purpose and the entities that allocate them. Here are the key differences between the two:

  1. Issuing Authority: TIN (Taxpayer Identification Number) is allocated by the Commercial Tax Department of the respective state, while TAN (Tax Deduction and Collection Account Number) is allocated by the Income Tax Department of India.
  2. Purpose: TIN is used to identify dealers registered under VAT (Value Added Tax) and is mandatory for traders or dealers who participate in transactions that attract VAT. It provides a centralized place for all VAT transactions, allowing entities to track their VAT collections, payments, and future liabilities. On the other hand, TAN is assigned to banks or companies to help keep track of tax collections and deductions at the source.
  3. Structure: TIN is an 11-digit numeric code, while TAN is a 10-digit alphanumeric number.
  4. Requirements: TIN registration is mandatory for manufacturers, traders, exporters, and dealers. TAN is required for all entities who deduct or collect tax at source, and it must be quoted in all TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) returns, payment challans, and certificates.
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  • What is the Difference Between TIN and TAN?
  • Comparative Table: TIN vs TAN

    • Comparative Table: TIN vs TAN

    Here is a table comparing the differences between TIN (Tax Identification Number) and TAN (Tax Deduction and Collection Account Number):

    Parameter TIN TAN
    Purpose Identification number for entities and individuals subject to Value Added Tax. Identification number for entities and individuals responsible for deducting or collecting tax at source.
    Allocation Assigned by the Commercial Tax Department of the applicant's state. Assigned by the Income Tax Department of India.
    Number Composition 11-digit registration number with only numbers. 10-digit alphanumeric code with both letters and numeric digits.
    Structure No specific structure mentioned in the search results. First four letters represent the state where the TAN number was issued and the entity's initials, followed by random numeric digits and a letter as the last digit.
    Application Form Varies depending on the state the applicant is based in. Form 49B for all entities, regardless of the state they are based in.
    Cost of Applying Differs from one state to another. Rs. 55 + service tax.
    Responsibility Business entities and organizations that come under the purview of Value Added Tax. All entities responsible for collecting and deducting Tax Deductions and Tax Collections at source.

    Both TIN and TAN are important identification numbers that help streamline tax-related processes in India.

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    Guilherme Mazui

    Guilherme Mazui is graduated in journalism from the Federal University of Minas Gerais (UFMG) and a master's degree in Communication from the University of São Paulo (USP). In addition, he has experience in advertising writing and has worked as a content editor in several companies.