Tax Identification Number or TIN Number is a 11 digit number assigned to dealers in India. TIN Number, VAT Number, CST Number are all one and the same and the old sales tax numbers / CST numbers issued by State Sales Tax Authorities have all now been replaced by the TIN number. Therefore, TIN, VAT and CST number are all one and the same and it now mandatory to mention the TIN number wile undertaking state level or inter-state sales. It is also compulsory for all dealers to mention their TIN in all their sales as well as purchases. In this article, we look at the procedure the TIN Number Application in India and the process for searching for TIN Number.
Apply for TIN Number
TIN Number is required for dealers involved in the manufacturing or trading of goods in India, for whom VAT or Value Added Tax is applicable. VAT is a tax on the value added to a good during each step of the production process, as it passes through multiple stages. Under the VAT regimen, the end customer ends up bearing the VAT tax as all registered dealers in the value chain are allowed to take input credit. By availing input credit, dealers are allowed to retain a portion of the VAT collected by them from the customer as VAT against their payment of VAT taxes while purchasing goods. Therefore, the dealer is only taxed VAT on the incremental amount of value added by the dealer.
VAT is implemented in each of the States by the State Government in line with the guidance issued by the Empowered Committee. Therefore, the VAT tax rate, VAT registration procedure, VAT return filing requirement, VAT payment due date / methodology and aspects will vary from State to State. Therefore, it is important for the Entrepreneur to be aware of the procedures in his/her state for VAT or TIN Number Registration and follow the procedures laid out by the respective State Government.
Mostly to apply for a VAT or TIN Number in a State, the Entrepreneur will have to furnish documents such as proof of possession of premises (Electricity Bills, Property Tax Receipt, Rental Agreement, etc.,), PAN card for the entity, bank statement, MOA/AOA, photographs of the promoters, address proof of the Promoters, nature of business and other information. The list of documents required to obtain TIN Registration will vary from state to state. Therefore, it is best for the Entrepreneur to check with the State’s Sales Tax Department to correctly understand the TIN Number application process.
TIN Number Search
Once, the TIN Number is allotted, you are a registered dealers and allowed to commence any business involved in the sale of sale of goods. The TIN number allotted by the State Sales Tax Authorities for your registration will be quoted on all invoices raised by the Company and should be mentioned to the seller in some cases. TIN Numbers do not expire, but can be recalled if the proper periodic returns are not filed.
In many cases, dealers would like to verify the status of a TIN Number by searching online. You can search the TIN Number database through https://www.tinxsys.com. The website allows for TIN Number search across India, displaying brief dealer information and status of the registration.