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What is Tax Identification Number (TIN) in India?

Tax Identification Number or Taxpayer Identification Number, abbreviated as TIN, is a unique number assigned to a business by the Commercial Tax Department of the state that has received the application. It is a 11-digit number that serves as an identity for a business, which is registered under VAT for trade of goods and services. While the last 2 digits signify the unique code of the state that has issued it, the remaining 9 digits vary basis the state government that will register the number. TIN is also referred to as a VAT Number when transactions are intra-state. VAT has been replaced by GST from 1st July 2017.

Why is TIN essential?

It is an initiative to integrate and make essential tax-related details available on a unified platform.
It aids in identification of assets under Income Tax Act.
Business enterprises specialising in trade, manufacture, export and dealing with goods and services, require TIN for both purchase and sale of goods and services.
Information regarding a business enterprise can be easily accessed by multiple states where the business has its presence, streamlining intra and inter-state transactions.

Documents required for registration of TIN

Documents required for TIN vary between states. The following is a checklist of documents that are usually required in most states in India for registration of TIN.

Identity proof
Address proof
Address proof of the business that has applied for it
PAN Card of proprietor
4 – 6 passport sized photographs of the concerned proprietor
Reference

Application procedure for TIN

The below is the procedure for the application of TIN. However, it is subject to change based on the state that has received the application.

Sign up on the VAT portal of the relevant state government with a unique login ID.
Fill up the application available on the portal with required details and upload the essential documents.
The submitted application is verified by the Commercial Tax Department of the concerned state, following which a provisional certification and TIN is allotted.
A VAT Inspector employed by the state government visits the business address as a part of the final verification and issues the final certification.

FAQs

Does not mentioning the TIN in an invoice attract any penalty?

Yes, you have to pay a fine if you forget to mention TIN in any of your sales documents. However, the charge of the penalty is decided upon by the state that had assigned your TIN.

Can I mention my residential address while filling up the application for TIN?

Some states offer the provision of mentioning your residential address while applying for TIN, while doing the same in some other states may lead to your application getting cancelled by the VAT Inspector during the verification process.

Can I get TIN without registering the business?

If you are planning to start a Sole Proprietorship Firm, you can apply for TIN and then open a Current Bank Account based on your TIN certification.

Is my security deposit refundable? Can I skip paying it?

Yes, the security deposit is refundable on cancellation of your registration.

If you can offer the surety of the individual who have been registered in the VAT laws in the state where you will apply for TIN or can guarantee that your annual business turnover will be more than 10 lakh, you can skip paying the security amount.

Is VAT Number the same as TIN Number?

Yes, TIN Number is also referred to as VAT Number.

Why and how often is VAT charged by businesses?

Businesses have to charge VAT from their customers, so they can pay the same to the government while filing returns. For Sole Proprietorship Firms, the returns have to be filed on a quarterly basis.

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