Employer Identification Number, EIN

Reviewed by Adithyan | Updated on Nov 18, 2022

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What is an Employer Identification Number or EIN?

  • It is a unique identifier that is assigned to a business entity for easy identification by the revenue department.
  • This number is used for the purpose of reporting taxes.
  • These are usually 9 digits, but in India it is a 11 digit number that is better known as Taxpayer Identification Number (TIN).
  • It is used by employers, sole proprietors, partnerships, corporations, government agencies, trusts, not for profit associations, estates of descendants, certain individuals, and other business entities.
  • Once the TIN is allotted to your business, you will be a registered dealer and allowed to go ahead with your business involved in the sale of goods. Your TIN number will be mentioned in all the invoices raised by the company and also to the seller in some cases.
  • It is mandatory to mention the TIN while undertaking state level or interstate sales. It is mandatory for all dealers to mention their TIN in all their sales as well as purchases.
  • The database of TIN numbers is present on https://www.tinxsys.com.

    What is the importance of an Employer Identification Number?

  • It is a means through which essential tax related details can be made available under one single platform.

  • It also helps in the identification process of assets under the Income Tax (IT) Act.
  • It is required by businesses that specialise in trade, manufacture, sale and export of goods and services.
  • As all the information is in one place, intra and interstate transactions can be streamlined.
  • It also helps the revenue department distinguish one business from other businesses with similar names.

    What are the documents required to get EIN?

  • Proof of address

  • Proof of identity
  • PAN card of the proprietor
  • Passport-sized photos of the proprietor
  • Address proof for the business that you have applied for
  • References

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