Like Permanent Account Number or PAN is an identification number for individual taxpayers, similarly, TIN is an identification number assigned to business enterprises for tracking their transactions. Tin is basically required for all entities that are registered under VAT for trade of goods and services. The idea behind the move is to integrate at a single place all tax-related information of business enterprises operating in various states and carrying out inter-state as well as intra-state transactions.
TIN is required for business enterprises and is assigned by the Income Tax Department for monitoring transactions and attributing them to various business entities. TIN consists of 11 characters out of which the last two depict the state of the applicant. All business dealers who seek to register under VAT or the Central Sales Tax (CST) are furnished a TIN by the IT department.
How to Apply for TIN:
Application for TIN can, like PAN, be made both offline and online. This is to make the process simpler and easier for applicants. The Commercial Tax Department of any state is the authority responsible for furnishing TIN to registering enterprises. Since, TIN mandatorily needs to be quoted while submitting VAT, hence, the Tax Identification Number is furnished automatically at the time of registration. TIN is used to identify businesses registered under VAT. This is an effective way to track transactions carried out by enterprises in the country.
The steps for application of TIN differ from state to state since TIN is furnished by the state government. All of these steps are directed under the Central Sales Tax Act or CST.
While TIN sounds confusing with the Tax Information Network, the Tax Identification Number comes under the state government while the Tax Information Network is an initiative of the Income Tax Department, to manage efficiently the processing, collection and tracking of taxes in the country.
Why is TIN Required?
TIN or Tax Identification Number is a unique number which is assigned to business enterprises by the Commercial Tax Department of the respective state in which the applicant has applied. TIN is applied for both sale and purchase of goods and services in a state or between different states. TIN needs to be mandatorily registered for by the enterprises applying for VAT registrattion like the exporters, manufacturers, traders and dealers of goods and services.
Whether it is VAT, CST or TIN, only one identification number TIN is required to go smoothly through all transactions pertaining to these.
Documents Required to Apply for TIN:
Since TIN is furnished by various state governments, the documents required differ from state to state. However, there is a generic list of documents which is applicable to almost all states in the country when it comes to registration of TIN.
- Proof of identity
- Proof of address
- Proof of address of business enterprise
- PAN card of proprietor along with 4-6 passport sized photographs
- Reference or Security
The above list of documents is subject to modification based on the state in which the application for TIN is being made.
List of State Codes for First Two Digits of TIN
|Sl. No.||State Name||TIN number – First two digits||State Code|
|1||Andaman and Nicobar Islands||35||AN|
|3||Andhra Pradesh (New)||37||AD|
|9||Dadra and Nagar Haveli||26||DN|
|10||Daman and Diu||25||DD|
|16||Jammu and Kashmir||01||JK|
Difference between GSTIN and TAN Numbers
|GSTIN is the Goods and Services Tax Identification Number. It is a tax registration number that comes under the Goods and Services Tax (GST). This is a 15-digit number that is assigned state-wise to each taxpayer. This is what the 15 digits stand for:
||TAN is the Tax deduction and collection Account Number. It is an alphanumeric number that is 10 digits. When paying tax to the Central Government, it is mandatory for tax deductors to quote the TAN.This number is visible on Form 16, Form 16A, and Form 26AS.|
|Before the implementation of GSTIN, all the dealers who had registered under the VAT law of the state were assigned a Tax Identification Number (TIN) by the respective state. After GST implementation, all of this was consolidated under one platform for streamlined administration and compliance. A single authority now assigns the registration. Under the GST regime, all businesses are assigned a unique GSTIN. Verification of GSTIN is done on the Goods and Services Tax website of the Government of India.||TAN is required for any individual or entity who is required to deduct tax at source when making payments such as rent, salary, etc.|
Frequently Asked Questions on TIN:
Is TIN also called as VAT Number?
Where all is TIN specified for transaction of goods and services?
What is the standard procedure for TIN application?
Is TIN same as TAN?
How long is a Tax Identification Number or TIN?
What happens if I do not mention TIN in any invoice that I receive as part of a sales deal?
Yes. When used for intra-state transactions, TIN is interchangeably known as VAT number also.
All receiving and sending companies are required to mention TIN on all documents pertaining to the deals like invoice, sales order, quotation etc.
There is no one standard procedure for TIN application. It varies from state to state.
No. TIN is an identification number for business taxpayers while TAN is an identification number for entities eligible to deduct TDS on behalf of the Income Tax Department.
TIN is an eleven-digit long identification number in which the first two digits stand for the state code where the applicant has applied for.
In case, a business enterprise forgets or overlooks to mention TIN in any of the sales documents, then this is liable to attract penalty. This penalty depends upon the state that levies it.