What is TIN Number? How To Apply? Why Do Business Owners In India Need It?
If your startup / SMB company is looking to sell something online or offline, chances are that you have heard about TIN Number. Here's a short guide for you to understand what a TIN number in India means, why does your company need it and how can you apply for it. Let's begin -
1. What is TIN?
TIN stands for Taxpayer Identification Number. This term is used alternatively with VAT (Value Added Tax) number. [Note: TIN number is called VAT number when it used for intra state sales.]
"Tax Information Network" is an initiative made by Income Tax Department of India to make the process of collection, processing, accounting and monitoring of direct taxes completely online. Under this network, Govt. of India wants to have a single repository of all tax related information, that can be accessed from anywhere within the country. To access it, every dealer needs a TIN Number as a token of identification of the business being registered under VAT.
TIN has two key sub-systems:
1. Electronic Return Acceptance and Consolidation System (ERACS)
Under this taxpayers get to access a web-based utility for upload of electronic returns of TDS, TCS and Annual Information Return (AIR) to the central system of TIN.
2. Online Tax Accounting System (OLTAS)
Here details about different TAX related information from various tax collecting branches across the country will be accessible.
So, a TIN is an an eleven digit number (where first 2 digits indicate State Code and 9 digits differ according to every state government). Business owners have to mention the TIN on all correspondence and VAT transactions.
Basically, every sending & receiving company in deal has to specify the TIN number on all their documents such as Invoice, Quotation, Sales Order etc.
2. Do I need TIN?
If you are a Manufacturer or Exporter or Dealer or a Trader based in India, you need to get TIN.
3. How to Apply for TIN Number in India?
For online application, you can visit the official website, here: #-Link-Snipped-#
If you want to apply offline, you can download the form [attached below] and submit it at your nearest center.
4. What documents do I need to apply for TIN number?
- ID Proof / Address proof / PAN card of proprietor with 4 to 6 number of photographs
- Address proof of Business premises;
- 1st Sale / Purchase Invoice, copy of LR/GR & payment/collection proof with bank statement
- Surety/Security/Reference.
You can check the location of the nearest IN-Facilitation Centres Cum PAN Centres here:
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For startups, we recommend that you get in touch with your CA. He/She can guide you in case of any glitches in the process.
In case if you have any queries, please ask them below. We will try our best to answer them ASAP.
