What is TIN Number? How to Apply for a TIN Number?

TIN is also known as Tax Identification Number. A Tax Identification Number is a 11 digit number that is assigned to dealers in India. VAT Number, TIN Number and CST Number are all the same and the CST Numbers/old sales tax numbers which are issued by the Sales Tax Authority of the State are now replaced by the Tax Identification Number.  Since, VAT, TIN and CST numbers are all same, therefore it has been mandated by the Government of India to mention the assigned Tax Identification Number at the time of undertaking any type of State-level or Inter-state-level sales. It has also been made mandatory for all the dealers to mention their assigned Tax Identification Number in all the sales and purchases that they perform. Through this blog, we will try to understand about the process of Tax Identification Number application in India and the procedure to search for the Tax Identification Number.

Applying for Tax Identification Number

A Tax Identification Number is needed for those dealers who are involved in the production and trading of different types of goods in India. The goods involved are only those on which Value Added Tax (also known as VAT). Value Added Tax is the tax which is applied on the value that is added to goods in the course of every step of the process of production when the goods pass through different stages. Under the Value Added Tax regimen, the customer at the end has to face the VAT taxes because all the dealers in the value chain that have been registered are permitted to take the input credit. By getting the input credit the dealers get to keep a portion of the Value Added Tax that they collect from the customers as VAT against their payments of Value Added Tax at the time of purchasing goods. Hence, the dealer will only be liable for taxation of VAT on the Progressive amount of value that is added by the dealer.

Value Added Tax is implemented by the state government of each state as per the guidance that is issued by the Empowered committee. Hence, the various aspects of VAT like the tax rate under VST, the registration process of VAT, the return filing requirements for VAT, the due dates of payments and the methodology of VAT and others vary from state to state.hence, it is essential for entrepreneurs to be acquainted with the processes for registration of Value Added Tax and Tax Identification Number in his or her state and should follow the steps laid out by the particular State Government.

In order to apply for either a VAT or a Tax Identification Number, an entrepreneur needs to submit few essential documents like the proof possessing premises(either Receipts of Property Tax or Electricity Bills or Rental Agreements or others), his PAN Card, a bank statement, either a MOA or AOA, photographs of promoters, the address proof of the respective promoters, the type of business and other relevant information. The documents that are needed to register for Tax Identification Number also vary from one state to another. Hence, the best option for the entrepreneur is to contact the Sales Tax Department of the respective state to better understand the Tax Identification Number and its application procedure.

Searching the Tax Identification Number

Once an entrepreneur has been allotted the Tax Identification Number, he will be recognised as a registered dealer and will be permitted to commence any sort of business  that involves the sale of goods. The Tax Identification Number that will be issued by the Sales Tax Authorities of the respective state, will be mentioned on all the invoices that are raised by the company and may also be mentioned to the seller in specific conditions. There is no need for the renewal of Tax Identification Number because it never expires. However, it is possible that the Tax Identification Number gets recalled in case adequate periodic returns are not filed by the entrepreneur.

It is also possible that a dealer wants to verify the status of the Tax Identification Number that is assigned to him by searching online. It is easy to search for your Tax Identification Number in the TIN database via https://www.tinxsys.com. This website permits the search for Tax Identification Number across the country an displays brief information of the dealer and the status of registration.