India Terminology

The following table explains terms NetSuite uses for India-specific business processes and SuiteApps.

Term	Definition
Aadhar Number	It is a 12-digit unique identification number the Unique Identification Authority of India (UIDAI) gives to residents of India.
Bill of Entry	Under GST rules, importers fill out this declaration form with the Customs department.
Bond	A bond is a financial instrument where the issuer owes the holder money and must pay interest or repay the principal later.
Challan	This is an official form used to credit money to a bank account, often used in India as a receipt for payment or delivery.
Central Goods and Services Tax (CGST)	This tax is collected by the Central Government on sales within a single state.
Goods and Services Tax (GST)	GST is an indirect tax in India on goods and services, from the manufacturer to the consumer. It’s a consumption and destination-based tax, so taxes go to the state where goods or services are used, not where they’re made.
Letter of Undertaking (LUT)	This is a type of bank guarantee where a bank lets its customer borrow short-term credit from another Indian bank’s foreign branch.
Permanent Account Number (PAN)	This is a 10-digit alphanumeric number the India Income Tax Department gives to all judicial entities under the Income Tax Act 1961.
Reverse Charge	Under GST rules, the recipient pays GST instead of the supplier.
Tax Deduction Account Number (TAN)	This is a 10-digit alphanumeric number the India Income Tax Department gives to people who need to deduct or collect tax on payments under the Income Tax Act 1961.
Tax Deduction at Source (TDS)	TDS is a way to collect income tax in India under the Income Tax Act of 1961. It collects tax right at the source and deducts it when the invoice is issued or payment is made, whichever happens first.
TDS Section Code	This code shows a section from the Income Tax Act of India, and each section sets which TDS tax rate applies to a transaction.
Tax Collection at Source	Tax Collection at Source (TCS) is an income tax that a seller collects on the sale of specific items from a buyer. Section 206C of the Income Tax Act lists which items TCS applies to and who needs to collect it.
Unique Quantity Code (UQC)	This is a unit of measurement you need to include in a transaction. According to CGST rules, every tax invoice, credit note, or debit note must have a UQC or quantity unit description.

Term

Definition

Aadhar Number

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

Bill of Entry

Under GST rules, importers fill out this declaration form with the Customs department.

Bond

A bond is a financial instrument where the issuer owes the holder money and must pay interest or repay the principal later.

Challan

This is an official form used to credit money to a bank account, often used in India as a receipt for payment or delivery.

Central Goods and Services Tax (CGST)

This tax is collected by the Central Government on sales within a single state.

Goods and Services Tax (GST)

GST is an indirect tax in India on goods and services, from the manufacturer to the consumer. It’s a consumption and destination-based tax, so taxes go to the state where goods or services are used, not where they’re made.

Letter of Undertaking (LUT)

This is a type of bank guarantee where a bank lets its customer borrow short-term credit from another Indian bank’s foreign branch.

Permanent Account Number (PAN)

This is a 10-digit alphanumeric number the India Income Tax Department gives to all judicial entities under the Income Tax Act 1961.

Reverse Charge

Under GST rules, the recipient pays GST instead of the supplier.

Tax Deduction Account Number (TAN)

This is a 10-digit alphanumeric number the India Income Tax Department gives to people who need to deduct or collect tax on payments under the Income Tax Act 1961.

Tax Deduction at Source (TDS)

TDS is a way to collect income tax in India under the Income Tax Act of 1961. It collects tax right at the source and deducts it when the invoice is issued or payment is made, whichever happens first.

TDS Section Code

This code shows a section from the Income Tax Act of India, and each section sets which TDS tax rate applies to a transaction.

Tax Collection at Source

Tax Collection at Source (TCS) is an income tax that a seller collects on the sale of specific items from a buyer.

Section 206C of the Income Tax Act lists which items TCS applies to and who needs to collect it.

Unique Quantity Code (UQC)

This is a unit of measurement you need to include in a transaction. According to CGST rules, every tax invoice, credit note, or debit note must have a UQC or quantity unit description.

General Notices