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What is CIN Number & Why is it Necessary?

Last Update Date : April 30, 2019
Estimated Read Time: 5 min

CIN number is used for tracking all the aspects of a company by the Registrar of Companies, from incorporation and should be included in all the transactions with the Registrar of Companies.

What is CIN Number?

Corporate Identification Number (CIN) is a unique number which is given for identification allotted by Registrar of Companies under the Ministry of Corporate Affairs. It is a 21-digit number and a combination of alphabets and numbers (21-digit alphanumeric code). It is issued by different Registrar of Companies in different states. The CIN number is needed to find out different information about the company. It helps to find all the basic details relating to a company. It is a reference number which helps to identify the company and various details easily.

Where is CIN Needed?

All types of companies should mention the CIN number on various documents like

  1. Invoices and Receipts
  2. Notices
  3. Letterhead of the company
  4. Annual Report of the company
  5. E-documents
  6. Report to Ministry of Corporate Affairs
  7. Official Publications

How CIN Number is Formed?

  1. First Digit – Represents the Listing Status.
    It means whether the company is listed or not listed on the Indian Stock Market.
    If a company is listed- then it will start with “L”
    If a company is not listed- then it will start with “U”
  2. Second, Third, Fourth, Fifth and Sixth Digit (Set of 5 digits)- Represents the industry the company operates in
    It tells us about the activity or business the company is doing.
    The nature of economic activity done by the company
    It depends on the business line of the company. And then the industry code is given or allotted
  3. Seventh and Eighth digit – Represents the state in which the company is registered.
    For example – If its Maharashtra, then it’s MH
    For Delhi, it’s DL
  4. Ninth, Tenth, Eleventh and Twelfth (Set of 4 digits) – Represents the year of Incorporation
    It states the year in which the company was formed and incorporated with the ROC.
  5. Thirteenth, Fourteenth, Fifteenth (Set of 3 digits)- It represents the classification or ownership type of the company. The company can be a private company (PTC) or a public company (PLC). If it’s a Government Company it is GOI, Non-Profit company is NPL
  6. Sixteenth, Seventeenth, Eighteenth, Nineteenth, Twentieth and Twenty-First – It represents the registration number given by the Registrar of the Companies (ROC)

Importance of CIN

CIN number is mandatory for companies, GST, Income tax and banks.

CIN for Companies

  1. It is an important alphanumeric number which helps to track the company.
  2. It helps the company in official communication by identification of the company in all aspects.
  3. It helps to find easily find information about the company. Whether it is a private company, public company, Government company, Foreign company can be easily found out.
  4. The State in which the company is incorporated or registered can be known.
  5. With registration number, one can easily know the real companies operating in the country. The fake companies can be easily identified as they will not have a CIN number by Ministry of Affairs.
  6. Good corporate governance is established as only companies which are legal and have been scrutinised will have a CIN number.

CIN Number in GST

In GST or Goods and Services Tax, CIN stands for challan identification number.

Challan Identification Number has 3 parts

  1. Seven-digit BSR code of the branch of the bank
  2. Date of the deposit
  3. Serial number of the challan

It is a 17-digit number. CIN is given by banks or RBI when payment is received by banks or RBI and credited to Government account. It helps to understand that money has been collected and credited to Government account. Hence, CIN number is that number through which we understand that GST payment has been received to the appropriate Government Account. It is a confirmation by which the GST payer has paid the GST to the Government account.

As challans are collected by the bank, the collecting bank will put its number of 7 digits called the BSR code and challan serial number of 5 and the date of the deposit.

The person who is paying the tax by Challan Identification number can view the following details in the Electronic Accounting System

  1. BSR code
  2. Date of the deposit
  3. Challan serial number
  4. Major head code with description
  5. Assessee code
  6. Name of the assessee
  7. Receipt of the amount paid
  8. Receipt, whether the amount entered, is correct

CIN Number in Bank

When an assessee deposits amount in the bank for GST payment, the bank provides him with a CIN number which is challan identification number. Challan identification number is a 17-digit number as stated above. It is a 17-digit number where it gives the BSR code (Basic Statistical Returns) allotted by RBI. Then the date of payment and a serial number of the challan. CIN is stamped on the acknowledgement receipt to identify tax payment.

CIN Number in Income Tax

CIN in Income tax also refers to Challan Identification Number (CIN). All tax payments can be made through the OLTAS system (Online Tax Accounting System). Once assessee makes the payment, the CIN number is received. It is an authentication that the tax payment has been made to the respective bank account authorised by the Government.

Changing CIN number (Corporate Identification Number)

CIN is given to all companies who have registered with Registrar of Companies (ROC).

It can be changed in the following cases

  1. Change in Listing Status – If a company lists or unlists from the stock exchange, then the CIN number is changed.
  2. Change in Location – if the state of the registered office of the company is changed, then the CIN is changed.
  3. Change in Industry – if the company forays into a different sector then the whole CIN number is changed.

Penalty for Non-Compliance of CIN Number

Every any type of company has to register with Registrar of Companies (ROC). Once its registers and incorporates itself, then it is allotted a CIN number. This CIN has to be mentioned on all important documents and transactions with third parties for authentication. Failure to comply with the CIN number and its requirements, it can attract a penalty of Rs 1000 per day. Also, the defaulting person or authority has to pay the penalty. The maximum ceiling on the penalty is Rs 1,00,000.

People Also Ask

Q. What type of companies are registered under ROC and given a CIN number?

A. When a company incorporates with Registrar of companies, it is provided with a Corporate Identification Number.
All types of companies- Private Company, Public Company, Limited Liability Company, One Person Company, Nidhi Company, Government Company, Partnership Firm, Unlimited Company, Foreign Company

Q. Why CIN number should be mentioned in transactions related to business?

A. The CIN number should be printed on all important documents like letterheads, notices, official publications, invoices, annual reports etc.
It denotes transactions are taking place properly and in a legal framework. The reports of the activities can be tracked by the Ministry of Affairs.
Hence, the company is operating in a good governance mode by mentioning the CIN number and displaying the required information to the stakeholders.

Q. What type of Challans are used for payment of Income tax and does it contain a CIN for Income Tax (Challan Identification Number)?

A. There are 3 challans

  1. For payment of Income Tax, Corporation tax and Wealth tax
  2. TDS challan from companies and non-corporates
  3. Challan for gift tax, expenditure tax and other direct taxes

Every taxpayer after paying the tax will get a challan which has a Challan Identification Number. It gives an assurance that tax has been deposited to the Government specified bank account.

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Niteesh Singh
Niteesh is a Tax Researcher and Content Lead at H&R Block (India). He holds an MBA with a specialisation in BFSI domain. In his career spanning over six years, he has helped thousands of people understand taxes in a simple and effective manner. Outside work, Niteesh is an astronomy geek who is also involved in wildlife conservation activities.

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