What is TIN Number in India : All about TIN Number

Entrepreneurs always have no idea about  the legal terms like VAT or CST or TIN Number. So Today we give you the Gyan on the TIN Number to entrepreneurs. We at myonlineca receiving lot of request regarding the VAT/CST or TIN Number in India but people always confuse about this. so Let’s learn all about TIN Number in India.

TIN Number in India

Today everyone talks about country’s economic development; tax is an essential component of an economy. Tax,in my personal view is a hinge around which economy revolves. But it is an irony people generally know very less about it. Everyone must possess the basic knowledge of TIN/ CST/ VAT.Value Added Tax (VAT) Registration is a tax registration required for businesses trading or manufacturing goods in India. VAT Registration replaced Sales Tax in India and is synonymous with CST Registration and TIN Registration. VAT is a multi-stage tax with the provision to allow ‘Input tax credit (ITC)’ on tax at an earlier stage, which can be appropriated against the VAT liability on subsequent sale. Therefore, VAT is ultimately borne by the consumer.

VAT is a tax levied on the sales of goods in India which is collected and governed by the State Government, so each State Government in India has distinct rules applicable for their State based on the type of good manufactured or sold. Hence, it is important for any business involved in the manufacturing or trading of goods to check the VAT rates applicable for the goods they sell in their state and comply with the relevant regulation.

VAT Registration is mandatory in most states for traders or manufacturers having a turnover of more than Rs.5 lakhs per year (Rs.10 lakhs in some states). Therefore, manufactures or traders must be aware of the relevant state VAT regulation and obtain registration if required. When registered for VAT, the manufacturer or trader is allotted a unique 11 digit number which will serve as the VAT Number / TIN Number / CST Number for the business.VAT / TIN / CST utilize the same unique 11 digit number. Therefore, VAT / TIN / CST are the same and obtaining VAT Registration from the State authorities will suffice as the TIN or CST Registration also.

VAT Payments must be deposited in designated banks quarterly in case of Proprietary Firms, LLPs or Partnership Firms and monthly in the case of other type of business entities like Companies.For goods exported from India, VAT is not applicable. Therefore, exporters of goods are not required to pay VAT. However, it is advisable for exporters to obtain VAT registration.

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.

Who Required the TIN Number ?

TIN Number is required when you are dealing in the VAT Eligible Products or you are manufacture or trader. In most of the states TIN is required when your turnover cross 5 lac in a year but sometime in the starting you have to requried the TIN Number for the starting a business. For Ex – if you want to start a ecommerce business and want to sell on the popular marketplace like Flipkart or Snapdeal or Paytm or Amazon, in that case marketplace always required the TIN Number to selling on the various platforms.

What are the Documents Required for the TIN Number ?

TIN Number have a each state their own rules and regulations. So its all depend on the each state but Govt Department have to required following common documents for the TIN Number or VAT/CST –

a) Personal ID Proof like PAN Card Copy which is mandatory for Register any type of the business.
b) Personal Address Proof like Aadhar Card Copy or Voter Id or Passport Copy or Driving License.
c) Firm Address Proof like Utility Bills Copy as Elect Bill or Gas Bill or any Rent Agreement Copy or any Sale Deed Copy.

So above are the common documents. apart from this in some states you have to require the security deposit and cancel cheque copy or gurantor surety.

What is Security Deposit in the TIN Number ?

In every state they have own rules which is established by the each state government. so in most of the state they required a fixed amount of the Security Deposit in terms of bank grantee or fixed deposit. Its is refundable amount when you cancel the registration.  Below are the some examples –

a) In the Delhi there is no Security Concept so you can apply for the VAT without any security charges.
b) In the Maharashtra state  you have to required 25000/- INR Security Deposit.
c) In the Rajasthan State  you have to required the 20000/- INR Security Deposit.
d) In the UP or Haryana there is security deposit nearby 100000/- INR.

So these are the some common state which have security deposit rules. except the Maharashtra state you can provide the minimum 2 surety  of the person also instead of the VAT Security which are already registered under that State VAT Laws.

How to Apply for the TIN Number in India ?

For the TIN Number we already discussed above that each state they have own rules so basically below are some common procedure to apply TIN Number in all over India in any state –

a) First of all you have to find the respective State Government VAT Department Website.
b) In most of the state initial procedure is online throughout the website so you have to create a unique login on the VAT Portal.
c) After the creating login id you have to fill up the application with basic details and upload the basic documents which is mentioned above.
d) After the Filings of the application respective application is verified by the officer and issued a provisional certification and TIN Number.
e) After the provisional TIN Number Govt department officer visit the premise and verify the location of the premise and issued final Certification.

so above are the common procedure to apply for the TIN Number in India. apart from this recently Delhi government CM Arvind kejariwal initiative a Mobile App for the DVAT where not required to going anywhere and not required to VAT Inspector to visit the premise.

FAQ on the TIN Number in India

a) Can we apply for the TIN Number on the Residential address.
In the some state its allow but in some state during the VAT Inspector Verification they cancel the application on the residential premise.

b) Can we apply for the TIN Number without register our Firm or Name ?
Yes as a Sole Proprietorship Firm you can directly apply for the TIN Number and open  a current bank account on the TIN Certification Basis.

c) We have to charge the VAT from our Customer and Pay to the Govt on Quarterly Basis ?
Yes you have to file the proper returns so its all depend on the legal entity. if you are sole proprietorship firm then you have to file the Quarterly Basis Returns.

d) Security Deposit is refundable when we cancel the registration ?
Yes its refundable when you cancel the registration.

e) There is any way to skip the security amount ?
You have to provide the surety of the persons which are already registered in the VAT Laws in that state or you can take the show your turnover more than 10 lac in a year.

So Hope this article is helpful for you regarding the all about the TIN Number in India. if you have any query regarding the VAT/CST Registration or TIN Number just mentioned in the below comment.