The Centre has allotted new two-digit number series for the taxpayer identification number (TIN) in Telangana and Andhra Pradesh necessitated by the State bifurcation.
The new TINs will be made operational from the appointed day, June 2 and thus the dealers will have to apply for the new numbers for payment of taxes and to come under the purview of the respective assessing authority.
The identification number is mandatory for all traders/dealers to pay their commercial taxes like value added tax online. There are 3.75 lakh dealers in the united State who will have to apply online for the change of their respective successor State TIN.
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The government of India allotted No.36 for the dealers with operations in Telangana for their new TIN and number 37 for the dealers of residuary State of Andhra Pradesh, according to senior officials of Commercial Taxes department. The first two digits in a TIN represent the geographical area code. For the combined State of Andhra Pradesh, the code is 28 and it is part of united AP’s TIN.
Earlier, there were indications that new TIN would be allotted only to the Telangana State while the present TIN be retained for residuary Andhra Pradesh. However, the Union government allotted new TINs for both Telangana and the successor State of AP. “One reason could be the Centre wanted to freeze the existing data on VAT and segregate the data relatable to the existing AP state from the two successor States for future reference if required,” sources said.
Department sources said that they proposed to allot the new TINs to all the dealers by May 20. Each circle office has on an average 2,000 dealers and there are 260 circles in the State. The department has email addresses of 80 per cent of dealers in its database through which they would be contacted for change of TIN. The rest of 20 per cent small dealers would be contacted in person by enlisting the help of sales tax practitioners and help them in filling the online option form. There will be virtual separation of databases of Telangana and residuary AP, they added. There are three categories of dealers, those with business operations only in Telangana, those with operations only in Seemandhra and those with operations in both the regions.
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Accordingly, they will have to apply for fresh TIN of either of the respective State or both the States. The Commercial Taxes department is making arrangements to capture the data of principal place of business of the dealers. Every dealer will be asked to give his/her option to choose a TIN of their choice based on the principal place of business and it will be allotted. The precaution is to avoid legal and jurisdictional problems later, sources said.
In case a dealer wanted to set up a principal office in another State too, he will have to notify the additional address for the purpose of tax assessment.