A TIN or Tax Identification Number is allotted to a business/company by the Commercial Tax Department. It consists of an 11-digit number for business identification. The firm in question is also registered under Value Added Tax (VAT) or Central Sales Tax (CST) for trading services and goods. The Taxpayer Identification Number is also the Value Added Tax Number if the transactions happen at the intra-state level. GST replaced VAT in many sectors from July 2017.
The TIN contains the unique code of the state that issues the number. And this code is the last 2 digits. The other 9 digits differ based on the state government that registers the Tax Identification Number. In this post, we will discuss TIN features, the application process, required documents, differences between TIN and TAN, and frequently asked questions.
Here are the features of TIN:
Here is the process to apply for TIN. The procedure may vary from one state to another. But here are the steps on how the application usually takes place:
The papers you need for the Tax Identification number can differ from one state to another. But usually, you will need the following government-recognized documents:
Below are the major differences between TIN and TAN (Tax Deduction and Collection Account Number) -
Here are the FAQs on Tax Identification Number:
Here are the state names, TIN first two digits, and the state code:
If you want to start a Sole Proprietorship Firm, then you may apply for a TIN. After this, based on your TIN certification, open a current account in a bank.
If you request the cancellation of registration, then the security deposit is refundable. Also, you can skip paying the security amount altogether. But for this, you need to provide surety of the person/business registered for the VAT in the state you apply for TIN that the annual turnover of the company is above Rs. 10 lakhs.
Companies will charge Value Added Tax to customers to pay this VAT to the government when filing returns. If you are a sole proprietor, then you need to file returns every quarter.
If there is a field in the TIN application form to provide your residential address, then you may do so. But certain states do not allow so, and mentioning home address can lead to the cancellation of application by the VAT inspector when verifying the business address.
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