TIN and VAT

Amateur entrepreneur always have a dilemma in their mind about the TIN and VAT.Knowing its importance and how to get those,will help an entrepreneur think clearly. A better insight can be jotted down from below details.

TAX Payer Identification Number - TIN or VAT

Tax Payer Identification Number, acronym TIN is a unique number issued by the respective Government. It's an Eleven digit number mentioned in all VAT transactions. It helps identfy various dealers under VAT. The first 2 digits issued indicates the State code and rest 9 digits vary from state to state.TIN is applied for both sales done within a state or between two or more states. TIN is also being used to identify dealers in the same way like PAN, for identification of assesses under Income Tax Act.

Why and Who should have a TIN number?

One should have a TIN number so that a particular dealer can be identified and can be assessed under Income Tax Act. It helps the Income Tax Department to get hold of income and expenses and also the taxes being paid by a particular dealer.

TIN number registration can not be denied by any Manufacturer/ Dealer/Traders/Exporters.The major thing that need to be understood is that VAT number and TIN number is the same, the only difference between the two is that TIN number becomes the VAT number when it is used inside a State and the same TIN number becomes the CST (Central Sales Tax) number when used intra State.

There is always a question mark in the mind of the people ( Entrepreneur) who are not clear of VAT and TIN and keep on wasting their time in indulging and paying a Broker or so for the same allocation of the Number. Hope this article drives them to the right path.