When do i need a tin number

Written by. Cynthia Widmayer has over two years of experience as a personal finance writer. She covers home, car and life insurance products for Bankrate, the Simple Dollar, and Coverage.

Edited By Lance Davis. Edited by. Lance Davis. Lance Davis is the senior editorial director for Bankrate. Lance leads a team responsible for creating educational content that guides people through the pivotal steps in their …. Reviewed by. Kenneth Chavis IV. Share this page. Key Principles We value your trust. What is a Tax Identification Number? Read more From Cynthia. About our review board.

When are taxes due? Tax deadlines for Alternative minimum tax What it is and who has to pay. Thus a Taxpayer Identification Number ensures that there is least concealment of taxes pertaining to value added tax transactions and goes a step further to see that business entities, traders, manufacturers, dealers etc are being fair in their tax dealings and responsible towards the Government.

A Taxpayer Identification Number ultimately ensures legitimacy of business transactions and activities. Thus, it is evident that Tax Identification Number is beneficial and necessary for both, the Enterprise and the Government. Since Value Added Tax Registration is wholly managed by the State, different states have different threshold limits and rules for registration of Taxpayer Identification Number. In some states, registration for Value Added Tax is mandatory who have a turnover of more than Rupees five lakhs, in some states the limit is ten lakhs.

In Maharashtra, the threshold limit for an importer is Rupees One lakh, that is the total turnover of sales has to exceed that much and the turnover of sales or purchases of taxable goods should not be less than Rupees Ten Thousand.

For other dealers like, manufacturers, resellers, liquor dealers, works contractors, lessors etc. It is interesting to note that no threshold limits are there for voluntary registration. It is also clarified that turnover of Rupees one lakh and ten lakhs is connected to sales only. Sales of both taxable and non taxable goods are included.

Also, no turnover limit is specified for an importer. Even when he imports goods worth Rupees one, he is classified as an importer. The dealer has to apply for the registration of Taxpayer Identification Number within thirty days from the date on which he has exceeded the threshold requirements. In case there is a change in the ownership or the constitution, then a fresh application for TIN has to be made within thirty days from the date of that change.

Also casual dealers who have a taxable turnover of over Rupees ten thousand are required to register under VAT. Also, voluntary registration is permissible for anyone who wishes to start business in the state and can obtain TIN for the same. However, Paytm does make an exception, if a dealer does not have a TIN, but a VAT undertaking from the dealers side will be required which has to be duly signed and stamped.

Flipkart on the other hand, allows traders registering with only PAN to sell only books. Documents required for TIN application-. As it is governed by the respective states, each of the state has its own list.

A general list would include documents like ID proof, address proof, PAN card of the owner, around 5 photographs, address proof of the business entity, security assurance, copy of first invoice, bank statement etc. It can thus be seen that it is absolutely mandatory for a dealer to own a TIN for his business entity once he has crossed the threshold limit. It can look like a cumbersome and long process in the already exhausting list of compliances, but it comes with its own prestige and punishment otherwise.

Excellent Blog! I would like to thank for the efforts you have made in writing this post. I am hoping the same best work from you in the future as well. List of Partners vendors. It is required information on all tax returns filed with the IRS.

All U. A tax identification number is a unique set of numbers that identifies individuals, corporations , and other entities such as nonprofit organizations NPOs. Each person or entity must apply for a TIN. Once approved, the assigning agency assigns the applicant a special number.

The TIN, which is also called a taxpayer identification number, is mandatory for anyone filing annual tax returns with the IRS, which the agency uses to track taxpayers. Filers must include the number of tax-related documents and when claiming benefits or services from the government. TINs are also required for other purposes:. Tax identification numbers or taxpayer-identification numbers come in several different forms. More information about these types is noted below. Almost every country uses TINs for various reasons.

They help government agencies identify taxpayers and allow entities to invest their money across the Union. The social security number SSN is the most common tax identification number. SSNs are issued to individuals—U. The SSN is required to secure legal employment in the U. The SSA processes applications for free, but there are also fee-based services that offer to complete applications for new parents. Your Social Security number is a unique identifier that can be misused by fraudsters, so make sure you only release it to those you are required to, including the IRS, employers, and lenders.

To get an individual tax id number, the applicant must complete Form W-7 and submit documents supporting his or her resident status. Certain agencies—including colleges, banks, and accounting firms—often help applicants obtain their ITIN.

Those who qualify for an EIN must apply for the number and use it to report their income for taxation purposes. Applying for an EIN is free, and businesses can obtain one immediately. The ATIN only applies to domestic adoptions when the adoptive parents cannot obtain the child's SSN to complete their tax returns promptly. To qualify, the child must be a U. As of Jan. Before this date, the use of the PTIN was optional. You can get a tax identification number by applying directly to the correct agency.

If you need an Individual Taxpayer Identification number or one for a business, you may be able to obtain one directly from the Internal Revenue Service.