Intro pan , tin st

CHENNAI3rd Floor, ‘Creative Enclave’,

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COIMBATOREBB1, Park Avenue,

# 48, Race Course Road,Coimbatore - 641018.

Tel: +91 - 422 – 6552921

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WEBSITEwww.altacit.com

INTRODUCTION – PAN-TAN-TIN & Service Tax

By

Parvathi.V



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


Permanent account number

• Permanent Account Number (PAN) is a code that acts as identification of Indians, especially those who pay Income Tax.

• It is a unique, 10-character alpha-numeric identifier, issued to all judicial entities identifiable under the Indian Income Tax Act 1961.

• Number would be in the form of AAAPL1234C. It is issued by the Indian Income Tax Department under the supervision of the Central Board for Direct Taxes (CBDT) and it also serves as an important proof of identification.[1]

• .



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

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Cont…

• Like the Aadhaar Number and Driving License, it is also issued to foreign nationals (such as investors) subject to a valid visa and hence, it is not acceptable as a proof of Indian citizenship.

• The PAN is mandatory for a majority of financial transactions such as opening a bank account, receiving taxable salary or professional fees, sale or purchase of assets above specified limits etc; especially high-value transactions.

• Income Tax Slab And Rate For BusinessesFor Cooperative Society



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

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• The primary purpose of the PAN is to bring a universal identification to all financial transactions and to prevent tax evasion by keeping track of monetary transactions, especially those of high-net-worth individuals who can impact the economy.

• The PAN is unique to each individual and is valid for the life time of the holder, throughout India. An important point to note would be that once issued, the PAN is not affected by a change of address.

Cont…



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


Structure and provisions - PAN

IT PAN card is issued under Section 139A of the Income Tax Act.The PAN structure is as follows: AAAPL1234C: First five characters are letters, next four numerals, last character letter.The first three letters are sequence of alphabets from AAA to ZZZThe fourth character informs about the type of holder of the card. Each holder is uniquely defined as below:A — Association of Persons (AOP)B — Body of Individuals (BOI)C — CompanyF — FirmG — GovernmentH — HUF (Hindu Undivided Family)L — Local AuthorityJ — Artificial Judicial PersonP — IndividualT — AOP (Trust)



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


Tax Deduction and Collection Account Number

• TAN or Tax Deduction and Collection Account Number is a 10 digit alpha numeric number required to be obtained by all persons who are responsible for deducting or collecting tax. 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.

Who must apply for TAN?• All those persons who are required to deduct tax at

source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain TAN.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


Why to apply for TAN?The provisions of section 203A of the Income-tax Act require all persons who deduct or collect tax at source to apply for the allotment of a TAN. The section also makes it mandatory for TAN to be quoted in all TDS/TCS returns, all TDS/TCS payment challans and all TDS/TCS certificates to be issued. Failure to apply for TAN or comply with any of the other provisions of the section attracts a penalty of Rs. 10,000/-.

Who will allot TAN?TAN is allotted by the Income Tax Department on the basis of the application submitted to TIN Facilitation Centres managed by NSDL. NSDL will intimate the TAN which will be required to be mentioned in all future correspondence relating to TDS/TCS.

Cont…



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


TIN stands for Tax-Payer Identification Number

What is TIN number?TIN stands for Tax-Payer Identification Number, is unique number allotted by Commercial tax department of respective State. It’s an eleven digit number to be mentioned in all VAT transactions and correspondence.TIN number is used to identify dealers registered under VAT. First two digits of TIN indicate the issued state code. However, Other 9 digit of TIN creation may differs by state governments.TIN is applied for both sales done within a state or between two or more states. Tin is also being used to identify dealers in the same way like PAN, to identification of assesses under income tax act.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


Cont…• Who Needs TIN number?

Tin number registration is must for Manufacture/Traders /Exporters/Dealers. It comes to new registration under VAT or Central sales tax will be allotted new TIN as registration number. However, all state commercial tax department of India has stipulation to provide new TIN to existing Manufacture/Traders /Exporters/Dealers to replace their old registration / CST number.

• So, there is no difference in VAT/CST/TIN because these days only one number is needed for all type of sale you made. TIN number is called VAT number when it used for intra state sales. The same TIN number is being consider as CST number when it requires.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


TAX INFORMATION NETWORK

• Tax Information Network (TIN) is an initiative by Income Tax Department of India (ITD) for the modernization of the current system for collection, processing, monitoring and accounting of direct taxes using information technology. TIN is a repository of nationwide Tax related information, and has been established by NSDL e-Governance Infrastructure Limited on behalf of ITD.

• Services through TIN-FC• Through its network of TIN-Facilitation centres all over the

country, TIN offers the following services:• Acceptance of electronic and physical TDS/TCS Returns.• Processing of new PAN and PAN change request applications.• Processing of new TAN and TAN change request applications.• Acceptance of Form 24G statement. etc



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

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SERVICE TAX

• It is a tax levied on the transaction of certain It is a tax levied on the transaction of certain Specified Services, by the Central Government under the Finance , by the Central Government under the Finance Act, 1994.Act, 1994.

• It is an It is an Indirect Tax, which means that normally the , which means that normally the service provider pays the tax and recovers the amount service provider pays the tax and recovers the amount from the recipient of taxable service.from the recipient of taxable service.

• Service Tax was introduced in 1994 vide Finance Act, Service Tax was introduced in 1994 vide Finance Act, 1994 with 3 SERVICES namely, Brokerage charged by 1994 with 3 SERVICES namely, Brokerage charged by stockbroker, Telephone services & premium on General stockbroker, Telephone services & premium on General Insurance Services.Insurance Services.

• Applicable to whole of India except Jammu & Kashmir. Applicable to whole of India except Jammu & Kashmir. • Today there are more than 100 services under section Today there are more than 100 services under section

65(105),65(105),



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Cont...

• 01/07/1994 to 28/02/2003 5% ; E Cess 0% ; S&HE Cess 0% (Effective 5%)

• 01/03/2004 to 09/09/2004 8% ; E Cess 0% ; S&HE Cess 0% (Effective 8%)

• 10/09/2004 to 17/04/2006 10% :E Cess 2% : S&HE Cess 0% (Effective 10.2%)

• 18/04/2006 to 10/05/2007 12% ; E Cess 2% : S&HE Cess 0% (Effective 12.24%)

• 11/05/2007 to 23/02/2009 12% ;E Cess 2% : S&HE Cess 1% (Effective 12.36%)



• 01/06/2015 till date 14%



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

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Service Tax in some Special cases:

• In case of an insurer, carrying on life insurance business, in relation to the risk cover in life insurance provided to a policy holder, shall have the option to pay an amount calculated at the rate of 1% on the gross amount of premium charged. This has not been changed since 10-09-2004 when it was first introduced (Service Tax Rules, 1994, Rule 6(7A) exceptions to the above mentioned rate of 1% for insurer,



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


Cont…• Exception to this are:

(a) When the entire premium is paid by the policy holder and it is only towards risk cover in life insurance; or (b) When the part of the premium payable towards risk cover in life insurance is shown separately in any of the documents issued by the insurer to the policy holder

• 2. In case of the currency exchanged, rate of 0.25% has been introduced w.e.f. 16-05¬-2008 for the transaction of sale or purchase of foreign currency where no separate service charge is mentioned for the provision of such service. (Service Tax Rules, 1994, Rule 6(7B)

3. In relation to works contract service the assessee shall have the option to pay service tax at 4% of the gross amount charged for the works contract on service provided or to be provided. (Rule 3(1), Works Contract (Composition Scheme for Payment of Service Tax) Rules, 2007



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

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AbatementIn case of certain services, the benefit of abatementIn case of certain services, the benefit of abatement(rebate) is allowed to the service provides. In such(rebate) is allowed to the service provides. In suchcases, the portion of revenue is exempted (abated)cases, the portion of revenue is exempted (abated)while computing the assessable value.while computing the assessable value.

Example: If invoice for servicing is to be raised for Rs. 1000/- If invoice for servicing is to be raised for Rs. 1000/- and abatement of 75% is available(then service tax and abatement of 75% is available(then service tax will be will be imposed only on [1000 – 75% of 1000] Rs. 250/-imposed only on [1000 – 75% of 1000] Rs. 250/-

• Goods transport agency -75% abated.• Construction of residential services-67% abated.• Banking services- 30%• Rent a cab-60% etc.,



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

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Exemption Scheme for Small Service Providers

Central Government, provides the basic Central Government, provides the basic exemption to the service providers whose exemption to the service providers whose aggregate value of taxable services provided in aggregate value of taxable services provided in last financial year is less than last financial year is less than Rs. 9 Lacs.Assessee should not charge the Service Tax if Assessee should not charge the Service Tax if he/she is claiming the benefit of exemption. If he/she is claiming the benefit of exemption. If charged by mistake the same should be refunded charged by mistake the same should be refunded to the service receiver.to the service receiver.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

[email protected]


CONT…

• Who is liable to pay Service Tax?(Sec.68 (1) of the Act) says that-the ‘Person’ who (Sec.68 (1) of the Act) says that-the ‘Person’ who

provides the taxable service is responsible for provides the taxable service is responsible for paying the Service Tax to the Government.paying the Service Tax to the Government.

Service tax RegistrationService tax Registration• As per Section 69, every person liable to pay As per Section 69, every person liable to pay

service tax has to get themselves registered with service tax has to get themselves registered with service tax department.service tax department.

• Any provider of taxable services whose aggregate Any provider of taxable services whose aggregate value of taxable service in a financial year exceeds value of taxable service in a financial year exceeds Rs. 9 lacs, has to get themselves registered.has to get themselves registered.



Chennai - 600 004.Tel: +91 - 44 - 2498 4821



Bangalore - 560 001.Tel: +91 - 80 - 6546 2400



Tel: +91 - 422 – 6552921

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