India Localization SuiteTax Glossary

Term	Definition
Aadhar Number	Aadhar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI) to the residents of India.
Bill of Entry	Under GST regulations, it is a declaration form filled by the importer with the Customs department.
Bond	It is a financial instrument in which the issuer of bond owes the holders a debt and is obliged to pay them interest or to repay the principal at a later date
Challan	Is an official form as a way of crediting the money to one’s bank account, generally used in India as a receipt for payment or delivery.
Central Goods and Services Tax (CGST)	This is the tax to be collected by the Central Government on an intrastate sale.
E-Way Bill	A document required for the movement of goods, generated using the Invoice Reference Number.
Goods and Services Tax (GST)	GST is an indirect tax imposed in India on the supply of goods and services, right from the manufacturer to the consumer. It is a consumption-based and destination-based tax; therefore taxes are paid to the state where the goods and services are consumed and not the state in which they were produced.
Invoice Registration Portal (IRP)	The government portal for registering and certifying e-invoices.
Letter of Undertaking (LUT)	It is a type of bank guarantee, where a bank allows its customer to raise money from another Indian bank’s foreign branch as a short-term credit
Permanent Account Number (PAN)	It is a 10–digit alphanumeric number issued by the India Income Tax Department. It is issued to all judicial entities under the Income Tax Act 1961.
Reverse Charge	Under GST regulations, it is where the recipient of the goods or services is liable to pay GST instead of the supplier.
Section Code	The relevant section of the Indian Income Tax Act under which tax is deducted such as Section 194C for payments to contractors.
Tax Deduction Account Number (TAN)	It is a 10–digit alphanumeric number issued by the India Income Tax Department. It is issued to persons who are required to deduct or collect tax on payments made by them under the Income Tax Act 1961.
Tax Deduction at Source (TDS)	TDS is a means of collecting income tax in India, under the Indian Income Tax Act of 1961. This concept was introduced with an aim to collect tax from the very source of income and deduct at the time of issuing invoice or actual payment, whichever happens first.
TDS Section Code	It is a code that represents a section from the Income Tax Act of the government of India. Each section determines which TDS tax rate rule must apply to a transaction record.
Unique Quantity Code (UQC)	It is a unit of measurement that is required to be mentioned in a transaction. According to CGST Rules, any tax invoice, credit note, or debit note must have UQC or quantity unit description.

Term

Definition

Aadhar Number

Aadhar is a 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI) to the residents of India.

Bill of Entry

Under GST regulations, it is a declaration form filled by the importer with the Customs department.

Bond

It is a financial instrument in which the issuer of bond owes the holders a debt and is obliged to pay them interest or to repay the principal at a later date

Challan

Is an official form as a way of crediting the money to one’s bank account, generally used in India as a receipt for payment or delivery.

Central Goods and Services Tax (CGST)

This is the tax to be collected by the Central Government on an intrastate sale.

E-Way Bill

A document required for the movement of goods, generated using the Invoice Reference Number.

Goods and Services Tax (GST)

GST is an indirect tax imposed in India on the supply of goods and services, right from the manufacturer to the consumer. It is a consumption-based and destination-based tax; therefore taxes are paid to the state where the goods and services are consumed and not the state in which they were produced.

Invoice Registration Portal (IRP)

The government portal for registering and certifying e-invoices.

Letter of Undertaking (LUT)

It is a type of bank guarantee, where a bank allows its customer to raise money from another Indian bank’s foreign branch as a short-term credit

Permanent Account Number (PAN)

It is a 10–digit alphanumeric number issued by the India Income Tax Department. It is issued to all judicial entities under the Income Tax Act 1961.

Reverse Charge

Under GST regulations, it is where the recipient of the goods or services is liable to pay GST instead of the supplier.

Section Code

The relevant section of the Indian Income Tax Act under which tax is deducted such as Section 194C for payments to contractors.

Tax Deduction Account Number (TAN)

It is a 10–digit alphanumeric number issued by the India Income Tax Department. It is issued to persons who are required to deduct or collect tax on payments made by them under the Income Tax Act 1961.

Tax Deduction at Source (TDS)

TDS is a means of collecting income tax in India, under the Indian Income Tax Act of 1961. This concept was introduced with an aim to collect tax from the very source of income and deduct at the time of issuing invoice or actual payment, whichever happens first.

TDS Section Code

It is a code that represents a section from the Income Tax Act of the government of India. Each section determines which TDS tax rate rule must apply to a transaction record.

Unique Quantity Code (UQC)

It is a unit of measurement that is required to be mentioned in a transaction. According to CGST Rules, any tax invoice, credit note, or debit note must have UQC or quantity unit description.

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