Muncipal permission required for Tin shed construction over the land?

Yes. You need to take permission for construction of shed there. Whether it is tin sheet shed or a thatched house or a building you should take permission from MUnicipality. Actually, you have to get the approval of the drawing of the shed before you start constructing the shed. Once you obtain the approval for drawing, you can construct the shed and after completing the shed you have to get the permission for the shed by paying the tax as laid down by the municipality.
If the land where you are planning to have the shed, you should have the land on your name and also it should be non-agriculture land. If it is an agriculture land you have to pay the fee required and get the land converted to non-agriculture land before you start your work.
You are going to use it for a shop. So you should have all other permissions required for starting the business.

If you are paying land property tax to the Municipal authorities then you need not worry and go ahead with construction of temporary shed on your vacant land. According to the laws the owner can construct compound wall with a secured room for security purpose and there are instances when the open plot is used for the vegetables and flowers growing and the authorities will not object. In this case it is your own land and constructing shed over it is the temporary arrangement for which the Municipal administration should not object. They may object if you deviate the construction outside your land or the shed appears over outside the compound wall.

Construction of any permanent structure on a piece of land needs permission from the concerned local body-Panchayat or Municipality.
You have to apply in the prescribed form and submit the plan of the construction. Sometimes the plan has to be drawn and/or certified by an approved architect. You may have to produce your identification proof(Aadhaar card, PAN), ownership proof -a copy of the deed, latest land tax paid receipt, etc. You may have to specify the use of the construction- as commercial or residential. The application form may itself ask such details to be filled in.
The local body will then scrutinize the records, ensure that construction is not prohibited in that place, or ensure that it is not agricultural land, etc. and then come and inspect the land. Then if everything is okay they will give sanction for construction and the conditions you have to comply with.

First thing in this matter is on whose land you are going to construct this shed. Is it yours or you are going to buy it or want to construct a shed and pay the owner of the land some rent. Another important thing is where this land is situated. Is it a village or some town or city. If it is a village then you have to take the permission of making a shed from the gram panchayat. This would further require the occurrence of divisional authority under whose jurisdiction this village falls. Other thing is whether this is an agricultural land or some other category land like school, college, market etc. In such a case depending on its category approvals would be required and if it is agricultural land the construction is not allowed till one declares and gets it converted to normal land. Please note that conversion of agricultural land to normal land is generally not agreed until unless there are strong reasons to do that.

Now, the main thing is that whether it is a temporary construction or permanent construction, irrespective of that, one has to take permission of the competent authority for it and the authorities would also visit this place to ascertain that there is no issue with the land. Any construction big or small, requires to take the permission from the top authorities. If one does not follow it in India then he is taking risk of getting punished for such intentional mistakes. The purpose and map of the site should be clearly brought out and documents kept ready as the authorities would visit here before giving such permissions. There are some other situations also when the land does not belong to us but is under our control because our ancestors were living in it for quite some time. In such cases such land generally pertains to the Govt and we are not allowed to do any construction in it until unless it is allotted to us through Nazul land acts and procedures where we have to pay some lease amount to Govt for carrying out any commercial activity in it.