TIN - Tax Identification Number

Tax Identification Number (TIN)
  • The IRS (Indian Revenue System) uses TIN for tax-related tasks such as tax statements, tax reports, and tax returns
  • Every company with VAT registration has a unique Taxpayer Identification Number to buy and sell the goods and services to other entities in the country
  • If you want to claim tax benefits on these activities, then you must have a TIN on the sales documents
Allocation Department Commercial Tax Department
Format TIN has 11-digits. All are numbers

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.

Features of TIN – Tax Identification Number

Here are the features of TIN:

  • Business enterprises that specialize in the manufacture, trade, export, and deal with goods and services will need a Tax Identification Number to purchase and sell goods and services
  • TIN helps to identify assets under the Income Tax Act
  • TIN is also referred to as a Value Added Tax number. It is important to have a TIN if you are going for VAT registration
  • It allows integration of tax-related details on a single place
  • With the assistance of a business’s TIN, the authority in question can access the company’s presence and tax-based activities throughout different states
  • Thus, TIN streamlines inter and intra-state transactions on a unified platform
  • If you do not mention TIN in the sales documents, then you have to pay the required fine. The penalty amount thereby is decided by the state which assigns the Tax Identification Number

How to Apply for TIN (Tax Identification Number)?

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:

  • As per the state government, sign on to the respective VAT portal with your unique login ID
  • Fill up the application form and provide the required details
  • Now, upload the documents the portal asks for a TIN application
  • After submission of the application, the Commercial Tax Department of the respective state will perform verification
  • Following this process, you will receive a provisional certification along with a Tax Identification Number allotted
  • Then a VAT inspector from the concerned state government will physically visit the business address for final verification
  • Once the verification is confirmed, you will receive the final certification

Documents Required for TIN

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:

  • 4 to 6 recent passport size photographs of the proprietor
  • Address and identity proof
  • PAN Card of the proprietor
  • Reference
  • Address proof of the business that wants a TIN

What Are the Differences between TAN and TIN?

Below are the major differences between TIN and TAN (Tax Deduction and Collection Account Number) -

Taxpayer Identification Number (TIN) Tax Deduction and Collection Account Number (TAN)
Format TIN consists of 11 numerical digits. It is allocated to businesses in India that undertake VAT-related activities TAN consists of 10-digit alphanumeric numbers. This is allotted to entities liable to deduct and collect taxes
Responsible Department It is the Commercial Tax Department of the person’s state where the application is made, to allocate Tax Identification Number It is the Income Tax Department of India which is responsible to allot TAN
Application Forms The application form will differ from a state to another depending on the company that wishes to drop an application for TIN Form 49B
Purpose TIN allows to track VAT-related activities of businesses in India TAN allows to simplify and streamline the tax collection process at source and tax deduction

Frequently Asked Questions about TIN

Here are the FAQs on Tax Identification Number:

Here are the state names, TIN first two digits, and the state code:

Name of the State First Two Digits of TIN Number State Code
Jammu and Kashmir 01 JK
Karnataka 29 KA
Goa 30 GA
Andhra Pradesh (New) 37 AD
Andhra Pradesh 28 AP
Gujarat 24 GJ
Andaman and Nicobar Islands 35 AN
Haryana 06 HR
Assam 18 AS
Arunachal Pradesh 12 AR
Chhattisgarh 22 CT
Delhi 07 DL
Chandigarh 04 CH
Daman and Diu 25 DD
Bihar 10 BH
Dadra and Nagar Haveli 26 DN
Himachal Pradesh 02 HP
Jharkhand 20 JH
Kerala 32 KL
Meghalaya 17 ME
Odisha 21 OR
Madhya Pradesh 23 MP
Mizoram 15 MI
Lakshadweep Islands 31 LD
Sikkim 11 SK
Maharashtra 27 MH
Nagaland 13 NL
Manipur 14 MN
Tripura 16 TR
West Bengal 19 WB
Pondicherry 34 PY
Telangana 36 TS
Punjab 03 PB
Uttarakhand 05 UT
Rajasthan 08 RJ
Uttar Pradesh 09 UP
Tamil Nadu 33 TN

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.