Here are some key differences between TAN vs GST:
Purpose:
TAN: TAN is a unique 10-digit alphanumeric identifier issued to entities responsible for deducting or collecting tax at source (TDS). It uses for TDS-related purposes, such as deducting tax from payments made to employees, contractors, or other parties, and remitting it to the government.
GST, or Goods and Services Tax, stands as an all-encompassing indirect tax imposed on the provision of goods and services.in India. It is applicable to businesses engaged in the supply of goods or services and is intended to replace various indirect taxes like VAT, Service Tax, and Excise Duty.
For more information visit this site: https://www.incometax.gov.in
Applicability:
TAN: TAN is applicable to entities that require to deduct or collect tax at source as per the provisions of the Income Tax Act, 1961. This includes businesses or individuals making certain types of payments that fall under TDS requirements.
GST: GST is applicable to businesses with a prescribed turnover threshold. Presently, enterprises with a yearly revenue surpassing Rs. 40 lakhs (Rs. 10 lakhs for certain special category states) require to register for GST and comply with GST regulations.
Tax Type:
TAN: TAN is specifically related to Tax Deducted at Source (TDS). It involves deducting tax from payments made to others and depositing it with the government.
GST: GST is an indirect tax that levy at various stages of the supply chain. It is a value-added tax system where businesses collect tax on both sales and claim input tax credits on purchases.
Issuing Authority:
TAN: TAN is issued by the Income Tax Department of India.
GST: GST registration and GSTIN (Goods and Services Tax Identification Number) issue by the Goods and Services Tax Network (GSTN) under the authority of the Central Board of Indirect Taxes and Customs (CBIC).
In summary, TAN relate with TDS and require for deducting and remitting tax at source, while GST is an indirect tax applicable to businesses involved in the supply of goods and services. Both TAN vs GST have distinct purposes and comply with separate tax regulations.
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