What is a Tax Identification Number (TIN)?

A Tax identification number is an 11-character number that is used to identify businesses and individuals that are registered under the Central Sales Tax (CST) regime or VAT. A TIN is very important to track the financial activities, identify taxpayers, and ensure that they are meeting all the business tax compliance requirements. All businesses and individuals need to get a TIN from the state's commercial tax department to get easy file returns, and claim tax credits. 

Why is TIN Required? 

Here are some of the reasons why you need a Tax Identification number (TIN ).

• A TIN is required to ensure the identification of a taxpayer, which is essential for VAT purposes.
• It is important for both sales and goods purchase services, whether it is inside or outside the state.
• It helps the tax authorities to monitor and see the status of the VAT-related activities. 
• It is essential to file the tax returns and claim the input tax credits. 
• TIN provides accountability and reduces tax evasion. 

How to Apply for a TIN Number? 

Here are the easy steps given below: 

1. Go to the official commercial tax department website.
2. Enter the details in the registration form and make sure you have entered the correct VAT state. 
3. Upload all the supporting documents for the TIN, like identification proof, address proof, business registration proof, and other relevant documents. 
4. Submit your registration form with all the supporting documents to the online tax website. 
5. Wait for the Commercial Tax Department verification.
6. Once your verification is completed, you will get your Tax Identification number with your provisional certificate.  
7. You can download your VAT registration certificate from the website, which also includes your 11-digit TIN. 

What Documents will You Need to Apply for the TIN? 

Here is the list of documents that you will need to gather to apply for the TIN. 

• You need to attach identity proof. 
• Address proof 
• PAN card of a business person
• Proof of address of business
•  Provide security documents 
• Passport-size photo
• Incorporation certificate of the business. 
• Articles of Association (AoA) and Memorandum of Association (MoA). 

What is the Importance of TIN Number? 

The importance of an TIN number is: 

• It is very important for the VAT taxpayers. 
• Through the TIN number, tax authorities get a simple and easy tax administration process, which makes it easy to identify the tax.
• It helps them to claim the tax credits. 
• Provides help in auditing and investigations to ensure safe VAT regulations. 
• provides credibility and enhances transparency.