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    KNOWING GSTIN, PAN, TAN, DIN, DSC

    GSTIN

    GSTIN is an abbreviated form of Goods and Services Tax Identification Number that is allotted by Goods and Service Tax Network after applying for the GST registration. GSTIN is a fifteen digit alphanumeric code that acts as your business legal identity with the Indian government. In order to obtain GSTIN, the applicant can either use GST Portal or GST Suvidha Kendra (GSK).


    PAN

    PAN stands for Permanent Account Number; Any Income Tax Payer in the country is recognized by this uniquely identifying number known as PAN Card Number. It is a 10 Character Alpha-Numeric Unique Identification Number for any TAX Payer. It issued to each taxpayer, Business, Individuals, Trusts, HUFs, Foreign Citizens and more. PAN card is extremely important form of identity and is mandatory for Indian Citizens starting a company or LLP. PAN is mainly used by the Income Tax Department to keep a check on financial transactions that could carry a taxable component.  PAN is now required for many mundane transactions like remitting high value cash deposits, obtaining a loan, purchasing a property and more.


    TAN

    The primary purpose of the Tax Deduction and Collection Account Number, commonly known as TAN, is related to deduction or collection of tax at source. Under Section 203A of the Income Tax Act, obtaining TAN is compulsory for individuals or businesses that are mandated by the government to deduct or collect tax. Section 272BB of the Income Tax Act 1961 provides for a penalty of Rs. 10,000 in case the entity or individual collecting or deducting tax, fail to get the TAN or furnishes incorrect TAN details on the required documents. As per Section 203A of the Income Tax Act 1961, it is mandatory to quote TAN in the following documents:

    (a) TDS statements i.e. returns

    (b) TCS statements i.e. returns

    (c) Statement of financial transactions or reportable accounts

    (d) Challans for payment of TDS/TCS

    (e) TDS/TCS certificates


    DIN

    Director Identification Number (DIN) is a mandatory requirement for all existing and new directors (or proposed directors) of a company. A DIN number is issued under the directions provided by the amendment to the Companies Act. It is an 8-digit Unique Identification Number allotted to all directors. It has lifetime validity. The Director Identification Number provides a unique identity to the director helps in maintaining information of all directors in a database. In past decades, several Indian cities have had chit fund companies promise its residents incomparable returns, and then escape with their money to another city. To be able to cross-check such persons, and to ensure the director's identity is valid and all information provided is true, the government introduced the DIN. Accordingly, the DIN directory will contain all information regarding the directors, such as their name, PAN number and also their present address. For instance, if a director of one company applies for a DIN number and he wants to start another company and act as a director, he can do so, with the same DIN.


    DSC

    A Digital Signature Certificate is a secure digital key that is issued by the certifying authorities for the purpose of validating and certifying the identity of the person holding this certificate. Digital Signatures make use of the public key encryptions to create the signatures. A digital signature certificate (DSC) contains information about the user's name, pin code, country, email address, date of issuance of certificate and name of the certifying authority.

    There are three types of DSCs:

    • Class I type is used only for securing email communication
    • Class II type is used for Company or LLP Incorporation, IT Return E-Filing, obtaining DIN or DPIN and filing other forms with the Ministry of Corporate Affairs and Income Tax Department
    • Class III type is used mainly for E-Tendering and for participating in E-Auctions
    • For most business compliance, Class II digital signature suffices.

    MCA has mandated digital signatures for the following individuals:

    • Directors
    • Auditors
    • Company Secretaries - Whether in practice or in job
    • Bank Officials - for Registration and Satisfaction of Charges
    • Other Authorized Signatories

    Digital Signatures usually come with a validity of one or two years. The validity of the DSC can be renewed once the term of the previous DSC expires. Under the present plan you get DSC with validity of 2 years.