Taxpayer Identification Number or TIN is a unique identification number allocated by the Income Tax Department to businesses for keeping track of any business transactions. Any business firm registered under VAT for a trade of goods and services should be able to produce a TIN when required.
The primary motive behind issuing of TIN to businesses is integrating every tax-related information on one platform and for enabling the Income Tax Department to monitor any transactions carried out by the registered businesses. An 11-character TIN is assigned to all business dealers who want to have their business registered under VAT or the Central Sales Tax (CST).
A TIN is required for every business owner who is a regular tax payer. If a business owner is seeking to apply for a secured loan for funding or expanding his/her business, the Taxpayer Identification Number of the business should be produced as a part of the documentation.
Firms like Bajaj Finserv offers Ecommerce Seller Finance loans to sellers registered under e-tailer (retailers who sell goods via electronic transactions online) for business expansion purposes. To be an eligible applicant for Ecommerce Seller Finance Loan at Bajaj Finserv, the seller must have their products live, online at their partnered marketplaces or they must qualify certain parameters for the loan to be granted.
Businesses applying for the loan must meet one of the following Criteria:
If a business has a valid TIN, then it can apply for loans, amounting from Rupees 1 lac to Rupees 1 crore.
With the extensive initiatives of Empowered Committee of State Finance Ministers and the commencement of the Tax Information Exchange System (TINXSYS), now business owners in India can utilize Taxpayer Identification Number to obtain verifications about their trading partners within any part of the country.
Through TIN, anyone can check and find out the details attached to the VAT TIN or CST Number of its trading partner to validify the authenticity of the partners.
To make the process more accessible and easier for applicants, the government has provided the options where one can apply for TIN either online or offline. The Department of Commercial Tax of any Indian state is the authority that grants Taxpayer Identification Number to all the enterprises that wish to register for it.
For every business, it is necessary to produce TIN during submission of VAT, which is why the Taxpayer Identification Number gets automatically furnished the moment you register for it. TIN registration process differs depending on the state one registers at. The process is directed under the Central Sales Tax Act or CST.
To apply online for TIN in India one can visit the government’s official website at https://www.tin-nsdl.com and follow the steps directed on the website. Offline applicants will have to download the form and submit it to the closest centre.
The basic way to apply for TIN in any state of India follows a common procedure:
Documents Required to Apply for Taxpayer Identification Number:
The guidance and advice of a professional Chartered Accountant are highly recommended for start-up businesses, to avoid any form of glitches in the process.
Depending on factors like the type of business and the state where TIN is registered, the Taxpayer Identification Number differs.
A brief example can be made of businesses involved in the trading industry or product manufacturing industry; both types of businesses require a Value Added Tax or VAT Registration which is always applicable with TIN registration.
When a trading or manufacturing company registers for VAT, a unique Identification consisting of 11 numbers serves as the TIN number. Companies in these industries with a turnover of more than Rupees 5 lacs or 10 lacs in some states should mandatorily register for VAT.
TIN registration differs from one state to another and the security deposited while registering also differs. In many states, a fixed amount of security is deposited in terms of bank grantee or fixed deposit. The security amount is refundable at the time of cancelation of registration.
In Maharashtra, instead of the security deposit amount, business owners can also produce a minimum of 2 registered guarantors that are registered under the same State’s VAT Law.