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ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999
Taxpayer Identification Number (TIN) is a unique identification code allotted to entities registered under the VAT regime to streamline tax administration.
Value Added Tax is an indirect tax that is charged on the sale of goods and services in India. If you are registered under VAT, you will be required to file returns regularly to receive input tax credit. But with so many entities operating in India, how do the tax authorities keep track of the returns, credits, and other compliance procedures?
The answer lies in the Taxpayer Identification Number (TIN). This number helps tax authorities to monitor financial transactions across the country, ensure tax compliance, and identify business entities. Considering the multiple benefits, it is important for you to understand what is Tax Identification Number in India. It will help you ensure that you maintain proper records, communicate with the tax department if needed, and obtain timely credit.
Tax Identification Number is used for registration under the VAT (Value Added Tax) or CST (Central Sales Tax) regime. It is an 11-digit alphanumeric code that is assigned to individuals and businesses to track their tax filings. You must obtain the TIN number from your state’s commercial tax department and mention it on your VAT invoices. Your state-level tax authorities will then use the TIN to oversee the tax-related activities and maintain financial transparency.
TIN number is at the core of enhancing the efficiency of the tax administration system. It serves as an anchor in the process of identifying and evaluating taxpayers, streamlining tax authorities’ operations. Moreover, its implementation ensures a transparent, accurate, and accountable environment for all tax-related activities. This promotes economic stability and strengthens financial discipline, laying a strong foundation for sustainable financial management and growth.
TIN is critical primarily for tax-related functions, encompassing key tasks such as filing tax returns, facilitating tax payments, and seeking tax refunds. Additionally, it plays a crucial role in conducting business transactions that involve taxation, ensuring compliance with relevant regulations. By providing a unique identifier for taxpayers, TIN empowers the government to track taxable activities and effectively mitigate tax evasion. This, in turn, fortifies revenue collection endeavors, contributing to the nation’s financial stability.
There are various kinds of Tax Identification Numbers that are used globally to make the tracking process easier for tax authorities.
Now that you have understood what is TIN, you should move on to the next step, i.e., applying for it.
The process of obtaining the TIN code is pretty easy. You have to first approach your state’s commercial tax department for detailed guidelines about the application process. This is because there is no uniform process at the national level. In most cases, you will be required to fill out a registration form and submit documents. The authorities will then verify your information and allot the TIN on approval.
Securing a Taxpayer Identification Number (TIN) is mandatory for diverse participants in India’s economic field. This requirement extends to individual taxpayers and encompasses businesses of varying sizes and legal structures, including corporations, partnerships, and other entities. Whether salaried employees or self-employed professionals, all those actively involved in economic activities subject to taxation within the nation’s jurisdiction must obtain a TIN.
The documents required for TIN registration may vary depending on the applicant’s category and jurisdiction. However, commonly requested documents include:
Applicants can track the status of their TIN application online through the tax authority’s website. Typically, they need to enter the application reference number or other relevant details to access the status update.
The format of taxpayer identification numbers in India varies from state to state. However, it generally comprises a unique combination of alphanumeric characters, with the first two digits representing the state code and the remaining digits denoting the taxpayer’s identification sequence.
You must have heard about tax identifiers like the Permanent Account Number (PAN) or the Goods and Services Tax Identification Number (GSTIN). Though these numbers also help tax authorities to track compliance and identify taxpayers, they are different from TIN number meaning.
| Tax ID |
Objective |
| TIN |
Issued for VAT-related purposes |
| PAN |
Keeps track of income tax payments and returns |
| GSTIN |
Assigned to businesses that register under the Goods and Services Tax (GST) regime |
| Tax Deduction and Collection Account Number (TAN) |
Mandatory for individuals and entities responsible for deducting TDS or TCS on specified payments |
Here is a list of state codes commonly used in Taxpayer Identification Numbers across India:
| State Name (State Code) |
TIN Number Starts From: |
| Jammu & Kashmir (JK) |
01 |
| Himachal Pradesh (HP) |
02 |
| Punjab (PB) |
03 |
| Chandigarh (CH) |
04 |
| Uttarakhand (UT) |
05 |
| Haryana (HR) |
06 |
| Delhi (DL) |
07 |
| Rajasthan (RJ) |
08 |
| Uttar Pradesh (UP) |
09 |
| Bihar (BH) |
10 |
| Sikkim (SK) |
11 |
| Arunachal Pradesh (AR) |
12 |
| Nagaland (NL) |
13 |
| Manipur (MN) |
14 |
| Mizoram (MI) |
15 |
| Tripura (TR) |
16 |
| Meghalaya (ME) |
17 |
| Assam (AS) |
18 |
| West Bengal (WB) |
19 |
| Jharkhand (JH) |
20 |
| Orissa (OR) |
21 |
| Chhattisgarh (CT) |
22 |
| Madhya Pradesh (MP) |
23 |
| Gujarat (GJ) |
24 |
| Daman & Diu (DD) |
25 |
| Dadra & Nagar Haveli (DN) |
26 |
| Maharashtra (MH) |
27 |
| Andhra Pradesh (AP) |
28 |
| Karnataka (KA) |
29 |
| Goa (GA) |
30 |
| Lakshadweep (LD) |
31 |
| Kerala (KL) |
32 |
| Tamil Nadu (TN) |
33 |
| Puducherry (PY) |
34 |
| Andaman & Nicobar Islands (AN) |
35 |
| Telangana (TS) |
36 |
| Andhra Pradesh (AD) |
37 |
No, a Taxpayer Identification Number (TIN) differs from a Social Security Number (SSN). While both are unique identifiers used for tracking individuals for taxation purposes, an SSN is primarily used in the United States for social security benefits and other government programs, whereas a TIN is used in India for taxation purposes.
GSTIN and TIN are unique identifiers used for taxation purposes in India. However, GSTIN specifically pertains to the Goods and Services Tax (GST) regime introduced in 2017, while TIN meaning has been discussed in the sections above. It is basically an identifier used for VAT or CST-related purposes.
TIN is a vital component of India’s tax infrastructure, facilitating efficient tax administration and compliance. By obtaining a TIN, taxpayers contribute to the country’s economic development while ensuring their legal and financial compliance with tax laws and regulations. It is important to note here that GST has replaced VAT in most cases except for certain products like alcohol and petroleum. Thus, tax authorities primarily use GSTIN to track indirect tax-related transactions. Still, TIN continues to be relevant for products on which VAT is charged and for inter-state sales.
1
A TIN number in India is a taxpayer identification number, a unique alphanumeric identifier assigned to individuals, businesses, and entities for tax purposes.
2
Your TIN number can be found on your tax registration documents or by contacting the relevant tax authority in India.
3
No, TIN (Taxpayer Identification Number) and PAN (Permanent Account Number) are not the same. While both are used for tax purposes, TIN is used to track VAT, whereas PAN is primarily used for income tax purposes.
4
NRIs (Non-Resident Indians) may also need to obtain a TIN number in India if they have taxable income or engage in taxable activities within the country.
5
In income tax, TIN stands for Taxpayer Identification Number, which is used to identify taxpayers and track their tax obligations and transactions.
6
GST (Goods and Services Tax) is a comprehensive indirect tax levied on the supply of goods and services in India, while TIN (Taxpayer Identification Number) is a unique identifier used for VAT.
7
The full form of TIN is the Taxpayer Identification Number, which serves as a unique identifier for taxpayers in India.
1. What is indirect tax and its types?
2.What is the difference between direct Tax and indirect tax?
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
Pay 10,000/month for 10 years, Get 1,65,805/Year* for next 15 years.
ARN. No. KLI/23-24/E-BB/1201
Features
Ref. No. KLI/22-23/E-BB/999
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