TIN - Tax Identification Number

Just on the footprints of PAN which is used to identify individual taxpayers, TIN (Tax Identification Number) is issued/ assigned to business enterprises in order to keep track of their financial transactions. TIN is a necessary document for business entities registered under VAT for trade of goods and services. The basic purpose behind TIN is the integration of all tax related data of an enterprise operating in various states carrying out interstate and intrastate business.

TIN is assigned by Income Tax department to the business entities for proper monitoring of transactions. IT department issues an eleven digit TIN to business dealers who seek to register under CST (Central Sales Tax) or VAT (Value Added Tax).

• Sometimes people get confused for TIN to be Tax Information Network which is an initiative of the IT department for efficient management, processing, collection and tracking of taxes in the country.

How to apply for TIN:

Just like PAN, to make the process easier and simpler TIN can be applied boy online and offline. The state Commercial Tax Department is responsible for furnishing TIN to the applying enterprises. As TIN is a mandatory document for submitting VAT, TIN is furnished automatically at the time of registration.

TIN is issued in order to identify business entities and hence it proves an effective way to keep track of their financial transactions. All the Indian states have different guidelines for applications of TIN, as per directions by CST Act.

Why is TIN required?

TIN is required to be made by the businesses for following reasons:

  • It is a necessary document for business entities registering under VAT and CST like traders, manufacturers, dealers and exporters.
  • TIN helps one for hassle free trade for both interstate and intrastate cases.
Documents required applying for TIN:

As state government is involved in issuing TIN, the list of required documents may vary, but a generic list is given below for registration of TIN:

  • Identity proof
  • Address proof of businessmen involved
  • Address proof of business
  • PAN card
  • Passport size photographs
  • Security
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