Difference b/w TIN or TAN

Tax Deduction And Collection Account Number (TAN)

TAN stands for Tax Deduction and Collection Account Number. It  is a unique 10 digit alpha numeric number allotted by the Income Tax Department (ITD) of India. Compulsorily required to all the persons who are accountable for tax deducted at source (TDS) or tax collect at source (TCS) on behalf of the income tax department.

TAN number constitute of 10 digits, starting from four alphabets followed by five numbers ended with one alphabet. Example of TAN number is :-

RGPO 02811 K

The deductor is required to quote TAN number in every correspondence related to TDS or TCS. As failing to apply for TAN or not quoting the same on the specified documents attracts a penalty of Rs 10,000. It is compulsory to quote TAN in TDS/TCS return (including any e-TDS/TCS return), any TDS/TCS payment challan and TDS/TCS certificates.

Taxpayer Identification Number (TIN)

TIN stands for Taxpayer Identification Number, it is a 11 digit unique identification number used to all the dealers registered under VAT throughout the country for the sale of goods and services. It consist of 11 digits out of which first two characters represents the State code as used by the Union Ministry of Home Affairs and next nine digits differs from state to state. Of the remaining 9 digits, there are digits reserved to represent Area and district to which dealer is registered. Also called as VAT (Value Added Tax) number or CST (Central Sales Tax) Number.

All the dealers seeking for new registration under VAT or Central Sales Tax will be allotted new TIN as registration number, however every State Commercial Tax Department have made provisions to issue new TIN to their existing dealers replacing old registration/ CST number.

CST registration would be applicable if you intend to make an interstate sale.

Difference b/w TIN or TAN

Tax Deduction & Collection Account Number (TAN) Vs Taxpayer Identification Number (TIN):

TAN stands for Tax Deduction & collection Account Number TIN stands for Taxpayers Identification Number
TAN is an employer identification number. TIN is a dealer identification number.
10 digit unique alpha numeric number. 11digit unique numeric code.
Assigned by Income Tax department or registrauion. Assigned by sales tax department on registration.
Compulsory for Income tax collection (TDS/TCS). Compulsory for Value Added Tax (VAT) collection.