|Tax Identification Number (TIN)|
|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.
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) -
|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|
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|
|Andhra Pradesh (New)||37||AD|
|Andaman and Nicobar Islands||35||AN|
|Daman and Diu||25||DD|
|Dadra and Nagar Haveli||26||DN|
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.