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What is TIN Number in India: Everything Explained

Source: 1stformationsblog.co.uk

Do you know every business registered under VAT or CST (Central Sales Tax) is furnished with a TIN by the IT department?

The Government of India has mandated TIN for every business registered under VAT for goods and services. If you, as a business person, are wondering what TIN is and want to know about the application process, use; this piece will be a great help for you. Hence, stop digging on the internet and start reading!

What Is a TIN?

TIN  or (Taxpayer Identification Number) is an 11-digit identification number assigned to enterprises for tracking their interstate and intrastate transactions. The last two digits signify a unique code of the state and the remaining nine digits depend on the state government’s allocation. This 11-digit number proves the authenticity of a company.

This rule helps integrate a system that shows all tax-related information of businesses operating in various states. As a result, TIN helps  the Income Tax Department maintain transparency and monitor transactions easier.

Now that the definition is clear, let’s learn who needs this number, procedure to get TIN, documents required and many more. Read along!

Who Needs a TIN Registration?

TIN or Tax Identification Number is assigned to enterprises by the commercial tax department of their respective states. Any enterprise registered under VAT is required to possess a TIN.

Additionally, one must note that TIN is applicable for both the purchase and sale of goods within states or different states.

How to Get a Tax Identification Number?

Now, let’s learn how to apply for TIN online. You should know that the steps involved in TIN application can be subject to the state and their regulations.

To make an application for Tax Identification Number, follow the steps mentioned below.

  • Step 1 - Sign in to the VAT portal of your state with a unique login ID
  • Step 2 - Fill in the application form on the portal with the necessary details and upload the documents
  • Step 3 - This application will be verified by the commercial tax department of a concerned state
  • Step 4 - You will receive a provisional certification, and TIN
  • Step 5 - A VAT inspector who is employed by the state government will then visit the business address to conduct the final verification.

What Documents Are Required for TIN Application?

The documents required for TIN application can vary according to the regulations set by State governments. However, given below is a list of some generic documents for TIN registration  that are applicable in most states:

  • PAN card of proprietor
  • 4-6 passport size photographs
  • Address proof of an applicant
  • Identity proof
  • Address proof of the business

Individuals can check the application status of TIN. Read the following section to get a clear idea regarding the same.

How to Check the Application Status of TIN?

You can track the application status of TIN by visiting the official website of NSDL. The portal allows you to choose the application type and enter the 15-digit unique acknowledgement number. This number is available after 3 days of application.

Alternatively, you can call the TIN call centre on 020-27218080. You can also send an SMS  with the text ‘NSDLPAN’ and 15 digit acknowledgement no. to 57575. This will help you inquire about the status of the TIN application.

What Are the Uses of Tax Identification Number (TIN)?

The uses of TIN are plenty, such as the following:

  • It makes important tax-related details easily available on a single platform
  • One can gain input tax credit after getting the TIN
  • It helps in asset identification under the Income Tax Act
  • Businesses can easily continue their trade  by having TIN
  • It helps record intra and inter-state transactions

These points will clear your confusion regarding what is TIN and its application procedure. Additionally, don’t forget to check the official notification for updates in rules.

Frequently asked questions

Are TIN and TAN similar?

No, TIN is an identification number for businesses, while TDS payers require TAN.

Are VAT numbers and TINs similar?

Yes, VAT and TIN are similar, which helps in intra-state transactions.