TAN (Tax Deduction and Collection Account Number) vs and GST (Goods and Services Tax) are two different tax-related identification numbers used in India.
Here are the key differences between Tan vs. GST:
Purpose:
TAN:
TAN is a unique identification number assigned to entities responsible for deducting or collecting tax at source (TDS). It is used for TDS-related purposes and is required when deducting and remitting taxes from certain payments made to employees, contractors, or other parties.
GST:
GST is a comprehensive indirect tax levied on the supply of goods and services. It is applicable to businesses engage in the supply of goods or services in India. GST is design to streamline and simplify the taxation system by replacing multiple indirect taxes, such as VAT, Service Tax, Central Excise, etc.
Applicability:
TAN:
TAN is applicable to entities that are require to deduct or collect tax at source as per the Income Tax Act, 1961. This includes businesses and individuals making certain types of payments, such as salaries, contractor payments, rent, etc.
GST:
GST is applicable to businesses with a prescribe turnover threshold. Currently, businesses with an annual turnover exceeding Rs. 40 lakhs (Rs. 10 lakhs for certain special category states) are require to register for GST and comply with GST regulations. Tan vs. GST
Tax Type:
TAN:
TAN is relate to TDS, which involves deducting tax at source from specific payments and remitting it to the government on behalf of the payee.
GST:
GST is an indirect tax levied on the supply of goods and services at each stage of the supply chain. It is a consumption-based tax where businesses collect tax from customers and remit it to the government.
Authority:
TAN: TAN is issue by the Income Tax Department of India.
GST: GST registration and GSTIN (Goods and Services Tax Identification Number) are issue by the Goods and Services Tax Network (GSTN) under the authority of the Central Board of Indirect Taxes and Customs (CBIC).
It’s important to note that while TAN and GST are separate identification numbers with distinct purposes, businesses may need to comply with both TAN-related TDS obligations and GST-related compliance requirements if they fall under the respective applicability criteria. Tan vs. GST
To visit https://www.gst.gov.in/
