How To Apply For a TIN Number?

How To Apply For a TIN Number?

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Created By Admin Last Updated Tue, 25-Aug-2020

If you are new to the business world, the chances of hearing the word ‘TIN’ for the first time is really quite high. Well, the TIN number stands for Tax Information Network Number, a unique eleven-digit number provided by the tax department. Let us have a short tour about TIN Number and understand the methodologies to apply one.

What is TIN?

Let us begin with a simple explanation – the TIN number is alternatively used as VAT number when the business deal is carried out between two firms operating in the same state. So, if you are a manufacturer, exporter, dealer, or a trader based in India, it is very much necessary to quote the TIN number on all commercial documents such as invoice, quotation, purchase, or sales order. It does not matter whether you are selling or purchasing, the TIN number has to be invariably quoted in all correspondences and transactions pertaining to VAT.

Why TIN is required?

Income Tax Department of Finance Ministry initiated a ‘Tax Information Network’ to bring all the processes of direct taxation –, accounting, processing, receiving and monitoring under a single umbrella with a completely modernized online framework. Hence this tax information network became a single repository for all tax-related data through which necessary information can be gathered by the concerned authorities at any part of India. To facilitate smooth conducting of this process and for their firm’s identification, every dealer or trader needs to apply for a unique TIN number.

How to apply for TIN number?

Well, with e-governance being given the necessary thrust, gone are the days of difficulties in applying for tax-related documents. But nevertheless, few documents are invariably required to apply for TIN:

  • ID proof of proprietor
  • Address Proof of proprietor
  • PAN details of proprietor
  • Address proof of business firm
  • Purchase invoice copy / Lorry receipt or Goods receipt of business transaction
  • Proof of payment or collection of monies supported by bank statement
  • Surety or security details
  • Six photographs of proprietor
  • References

Remember, the document requirements may vary slightly with state governments and hence it is always advisable to approach the concerned authorities for necessary documentation requirement. As the details can be submitted online, make it a point to submit correct documents supporting your application. In the event of wrong details, the application may be rejected and create the necessity of reapplication.  

Advantages of TIN:

With the help of TIN, loads of processes can be easily carried out:

  • Verify the status of Tax deposited or collected
  • E-tax payment
  • Application for PAN and TAN
  • e-RI
  • Receive Form 24G and much more