GST - Goods and Services Tax
The "Goods and Services Tax" was introduced to reduce and simplify the complex structure of Indirect taxes in the country. GST would be the comprehensive indirect tax that would replace all the other indirect taxes levied by the Central and the State governments of India.
GST would tend to remove the cascading effect of taxes we call "taxes on taxes". It can be easily understood with the simple illustration. Suppose A sells goods of Price Rs. 100 to B after adding indirect tax @10%. So, the final price that B has to pay if Rs. 110. Again, if B sells the same product to C, he calculates the sales tax of 10% on the price Rs. 110, that means C gets the product at the price Rs. 121.
In the above scenario, as B calculates his tax liability, he also included the sales tax paid by him while buying a product from A. In this way it becomes a tax on tax, due to which the final price of the product has increase
The "Goods and Services Tax" was introduced to reduce and simplify the complex structure of Indirect taxes in the country. GST would be the comprehensive indirect tax that would replace all the other indirect taxes levied by the Central and the State governments of India.
GST would tend to remove the cascading effect of taxes we call "taxes on taxes". It can be easily understood with the simple illustration. Suppose A sells goods of Price Rs. 100 to B after adding indirect tax @10%. So, the final price that B has to pay if Rs. 110. Again, if B sells the same product to C, he calculates the sales tax of 10% on the price Rs. 110, that means C gets the product at the price Rs. 121.
In the above scenario, as B calculates his tax liability, he also included the sales tax paid by him while buying a product from A. In this way it becomes a tax on tax, due to which the final price of the product has increase
SENSEX - Stock Exchange Sensitive Index
BSE SENSEX or just SENSEX is the market indicator of the position of stocks listed in the Bombay Stock Exchange (BSE or BSE 30). The SENSEX is calculated on the basis of 30 well-established and financially sound companies listed in BSE. It is calculated using the “free-float market capitalization” method, which is the world wide accepted method for calculating market index.
List of the Companies which comprise BSE SENSEX:-
List of the Companies which comprise BSE SENSEX:-
- ICICI Bank
- Bharat Heavy Electricals Limited (BHEL)
- State Bank Of India
- HDFC Bank
- Infosys
- Oil and Natural Gas Corporation
- Reliance Industries
- Larsen & Toubro
- Hindustan Unilever
- Tata Consultancy Services
- Bharti Airtel and 19 others
Note: The list of the companies in BSE may change from time to time depending on the market condition of the Companies.
RTGS - Real Time Gross Settlement
Real Time Gross Settlement allow individuals, companies and firms to transfer funds from one account to another over the internet. RTGS does not require core banking to be implemented across participating banks, since transactions are direct.
Below is a listing of countries and their RTGS systems with a different name :-
- United Kingdom - CHAPS (Clearing House Automated Payment System)
- Japan - BOJ-NET (Bank of Japan Financial Network System)
- Hong Kong - Clearing House Automated Transfer System (CHATS)
- Australia - RITS (Reserve Bank Information and Transfer System)
- United States - Fedwire
RTGS is the fastest possible money transfer system since the money is transferred on a real time and gross basis. Real time means the transactions are settled as soon as they are processed. Gross settlement means the transaction is settled on one to one basis.
How does it differs from RTGS
Unlike RTGS where settlement is on real time basis, NEFT operates on a Deferred Net Settlement (DNS), ie. transactions are settled in hourly batches. For example - There are 25 settlements from 9 am to 7 pm on week days, So any transaction initiated after a designated settlement time would have to wait till the next designated settlement time.
Equated monthly installments are mostly calculated, when opting for a loan. It specifies the number of months you have to pay the sum of "interest and principal" each month, so that the loan is paid off completely. While repaying a loan, a lender or a borrower specifies a particular date on which installment of EMI will be given from borrower to lender.
For Example :
If you buy a house using a home loan of some money, which you need to return in the duration of 20 years (240 months). You lend this money from a bank, the installment will be paid to the bank, suppose on the 15th of every month. The EMI for the same will be calculated by combining 2 things : Principal and Loan.
Memorandum Of Understanding is a legal document that expresses mutual agreement on an issue between two or more parties. It is often the first stage in the formation of a formal contract that includes each parties requirements and responsibilities. MOUs are very common and are used for domestic purposes like agreement between different companies or institutions.
For example:
If some educational institute named "ABC" want their student to be trained by some company named "XYZ". Then, "XYZ" may ask the institute to sign the "Memorandum Of Understanding", after which, their students would not be able to contact any other company for that specific training.
Memorandum Of Understanding is a legal document that expresses mutual agreement on an issue between two or more parties. It is often the first stage in the formation of a formal contract that includes each parties requirements and responsibilities. MOUs are very common and are used for domestic purposes like agreement between different companies or institutions.
For example:
If some educational institute named "ABC" want their student to be trained by some company named "XYZ". Then, "XYZ" may ask the institute to sign the "Memorandum Of Understanding", after which, their students would not be able to contact any other company for that specific training.
Taxpayer Identification Number is an identification number allotted to the dealers, with the purpose of quoting them in all VAT transactions and correspondence.
Gross Domestic Product is the total market value of all the goods and services produced within a country in a specific duration of time. It is considered as an indicator of the standard to living of the people of that country. A country with good GDP numbers is considered better in terms of financial condition.
How to Calculate the GDP
It is equal to total of consumption, gross investment and government spending, plus the value of exports, minus imports.
Or, in a formula it can be written as :-
NEFT - National Electronic Funds Transfer
National Electronic Funds Transfer is a nation-wide system that facilitates individuals, firms and corporates to electronically transfer funds from any bank account to another. For being part of the NEFT funds transfer network, a bank branch has to be NEFT-enabled.
A Customer must possess the following information before using NEFT :-
- IFSC (Indian Financial System Code) of the beneficiary Bank/Branch
- Full account number of the beneficiary
- Name of the beneficiary
How does it differs from RTGS
Unlike RTGS where settlement is on real time basis, NEFT operates on a Deferred Net Settlement (DNS), ie. transactions are settled in hourly batches. For example - There are 25 settlements from 9 am to 7 pm on week days, So any transaction initiated after a designated settlement time would have to wait till the next designated settlement time.
BPL - Below Poverty Line
Below Poverty Line is a benchmark that is used by the Government of India to identify the Individuals who are critically in need of government aid. There are several Parameters that are considered while determining the range of Population who are below poverty line. These Parameters vary from state to state and within the state for rural and urban areas.
Some of the Parameters that are considered in BPL are :-
Some of the Parameters that are considered in BPL are :-
- Type of house
- Consumer durables
- Status of children
- Food security
- Clothing
- Literacy status
- SEBI - Securities and Exchange Board of India
Securities and Exchange Board of India, established on 12 April 1992, is the regulator for the securities market in India. It is headquartered in Mumbai and has its regional offices in Chennai, New Delhi, Kolkata and Ahmedabad. The main objectives of SEBI is to protect the interest of investors in securities and to promote the development of securities market.
SEBI has been invested with some necessary powers to function properly. This includes :-- Inspect the books of accounts of a financial intermediaries
- Levy fees and other charges on the intermediaries for performing its functions
- Compel certain companies to list their shares in one or more stock exchanges
- Delegate powers exercisable by it
FDI - Foreign Direct Investment
Foreign direct investment is an investment in a country by a company located in another country. The investment is called direct because the investor, is a foreign entity try to control or manage things of another country. It plays an extraordinary role in global business and helps in boosting the economy of any country.
FDI can be done in the following sectors :-- Telecommunication
- Retail
- Computer hardware and software
- Production
- Construction
- Manufacturing
- Services of any kind
Foreign direct investment (FDI) will receive tremendous impetus in various sectors in the future times to come, especially in the developing countries of the world.
EMI - Equated Monthly Installment
Equated monthly installments are mostly calculated, when opting for a loan. It specifies the number of months you have to pay the sum of "interest and principal" each month, so that the loan is paid off completely. While repaying a loan, a lender or a borrower specifies a particular date on which installment of EMI will be given from borrower to lender.
For Example :
If you buy a house using a home loan of some money, which you need to return in the duration of 20 years (240 months). You lend this money from a bank, the installment will be paid to the bank, suppose on the 15th of every month. The EMI for the same will be calculated by combining 2 things : Principal and Loan.
MOU - Memorandum Of Understanding
Memorandum Of Understanding is a legal document that expresses mutual agreement on an issue between two or more parties. It is often the first stage in the formation of a formal contract that includes each parties requirements and responsibilities. MOUs are very common and are used for domestic purposes like agreement between different companies or institutions.
For example:
If some educational institute named "ABC" want their student to be trained by some company named "XYZ". Then, "XYZ" may ask the institute to sign the "Memorandum Of Understanding", after which, their students would not be able to contact any other company for that specific training.
MOU - Memorandum Of Understanding
Memorandum Of Understanding is a legal document that expresses mutual agreement on an issue between two or more parties. It is often the first stage in the formation of a formal contract that includes each parties requirements and responsibilities. MOUs are very common and are used for domestic purposes like agreement between different companies or institutions.
For example:
If some educational institute named "ABC" want their student to be trained by some company named "XYZ". Then, "XYZ" may ask the institute to sign the "Memorandum Of Understanding", after which, their students would not be able to contact any other company for that specific training.
TIN - Taxpayer Identification Number
Taxpayer Identification Number is an identification number allotted to the dealers, with the purpose of quoting them in all VAT transactions and correspondence.
CST - Central Sales Tax
Central Sales Tax is a form of indirect tax imposed by a dealer, at the time of selling the product to the buyer of other state. This tax is governed by a central act, though the charges are state specific.
GDP - Gross Domestic Product
Gross Domestic Product is the total market value of all the goods and services produced within a country in a specific duration of time. It is considered as an indicator of the standard to living of the people of that country. A country with good GDP numbers is considered better in terms of financial condition.
How to Calculate the GDP
It is equal to total of consumption, gross investment and government spending, plus the value of exports, minus imports.
Or, in a formula it can be written as :-
GDP = private consumption + gross investment + government spending + (exports − imports)
Cost to Company is used to refer to the total cost that an organization is spending in employing someone. It can include :-
Before Hiring, a company always asks the following question to an Employee :
Current CTC - The salary that you receive from current organization
Expected CTC - Salary that you expect from us
Value Added Tax is a form of indirect tax imposed only on tangible goods and products. It does not applies on services, because a service tax is levied separately on them. From the perspective of the buyer, it is a tax on the purchase price. In India, VAT is collected by the Central and state governments, and the rate at which the tax applies varies from state to state.
CTC - Cost To Company
Cost to Company is used to refer to the total cost that an organization is spending in employing someone. It can include :-
- Basic Salary
- Dearness Allowance (DA)
- Travel Allowance (TA)
- Leave Travel Allowance (LTA)
- House Rent Allowance (HRA)
- Conveyance allowance
- Telephone / Mobile Phone Allowance
- Company Leased Accommodation
- Medical and Life Insurance premiums paid by company
- Medical allowance and more
Before Hiring, a company always asks the following question to an Employee :
Current CTC - The salary that you receive from current organization
Expected CTC - Salary that you expect from us
VAT - Value Added Tax
Value Added Tax is a form of indirect tax imposed only on tangible goods and products. It does not applies on services, because a service tax is levied separately on them. From the perspective of the buyer, it is a tax on the purchase price. In India, VAT is collected by the Central and state governments, and the rate at which the tax applies varies from state to state.
CMA - Credit Monitoring Analysis
Credit Monitoring Analysis is an analysis conducted by a credit analyst to evaluate the performance of the company in using or repayment of money or loan. While applying for a loan, the bank requires to calculate the CMA report which shows the performance of the company in past and its projected report for future. By viewing this report banks decides whether to sanction loan to a firm or not
Source taken from: http://fullformdirectory.in/bca.html#ixzz41LxVKM4u
Source taken from: http://fullformdirectory.in/bca.html#ixzz41LxVKM4u
