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CA: Chartered Accountant

In commerce, CA stands for Chartered Accountant. CA is a title used by members of a certain professional accounting institution or association. The Indian CAs are regulated by the Institute of Chartered Accountants of India (ICAI). They are hired for all types of organizations such as private firms, public sector companies, or governments bodies. More than 2,70,000 CAs currently operate in India.

Candidates who intend to apply for CA would have enrolled with ICAI for CPC course. Only registered applicants qualify for the CA examination. The CA eligibility requirements are as follows.

• Any candidate who has completed 10+2 in any stream (including Science, Maths, and Commerce) is eligible to register for the CA course. 
• The candidates must obtain a minimum of 60% aggregate in the 10+2 level to be eligible for this course. 
• For direct entry to intermediate level, the candidates must obtain minimum 60% marks in graduation. 
• However, if the candidate is a Commerce graduate, the minimum mark required is 55%.

A Chartered Accountant works in the field of finance and business. He provides professional advice to the company on financial matters. Some of the important functions performed by a CA in a company are listed below:

• Internal Audit:- Internal Audit is a dynamic profession that helps organizations to achieve their objectives. It is concerned with evaluating and improving the effectiveness of risk management, control and governance processes in an organization.
• Statutory Audit under Companies Act:-  The purpose of a statutory audit is the same as that of any other type of audit: to determine whether an organization is providing a fair and accurate representation of its financial position by examining information such as bank balances, bookkeeping records and financial transactions.
• Tax Audit:- A tax audit is an examination of your tax return by the IRS to verify that your income and deductions are accurate. A tax audit is conducted when the IRS decides to examine your tax return a little more closely and verify that your income and deductions are accurate.
• Tax Planning :- Tax planning is the analysis of one’s financial position from a tax efficiency point of view so as to plan one’s finances in the most optimized manner. Tax planning allows a taxpayer to make the best use of various tax exemptions, deductions and benefits to reduce tax exemptions over a financial year.
• Cost Planning :- A major problem we are seeing within the construction industry is the failure of projects to proceed due to over budget. Naturally, this frustrates both the architect and the contractor as well as the client.

Other full forms of CA

NSDL: National Securities Depository Limited

The full form of NSDL is National Securities Depository Limited. NSDL is an Indian central securities depository and the first securities depository in India which holds the securities of investors like shares, bonds and debentures in electronic format. National Securities Depository Limited (NSDL) is headquartered in Mumbai, India. It was established in August 1996 based on a suggestion by a national institution responsible for the economic development of India. It aims to ensure safety and reliability in the capital market of India by developing effective settlement solutions. RBI issued a license to NSDL to operate as a payment bank in India from 29 October 2018. NSDL is promoted by Industrial Development Bank of India Limited (IDBI), Unit Trust of India (UTI) and National Stock Exchange of India limited (NSE)

Other full forms of NSDL

KYC: Know Your Customer

The full form of KYC is Know Your Customer. KYC is a popular term used in the banking or financial sector. KYC is a process that financial institutions have to follow, under which these institutions obtain information about the identity and address of customers. Even if you submit KYC documents once in a while, banks can ask again as they need to update KYC records periodically. Banks may refuse to open an account or halt business relationship if the client fails to meet minimum KYC requirements.

It is necessary to open bank account, invest in mutual fund account, bank locker, mutual fund online then update your KYC with the bank. The KYC process was initiated by the Reserve Bank of India (RBI), the KYC guidelines are intended to prevent banks from being intentionally or unknowingly used for money laundering activities. Related processes enable banks to better understand their customers and their financial behavior. Today not only banks but also various online businesses can implement KYC.

• Customer Name
• Date of birth
• Father’s name
• Mother’s name
• Marital status
• Address proof
• Proof of identification
• Contact number
• Pan Card
• Aadhar Card
• Source of funds

• Passport
• Voter ID Card
• Driving license
• Aadhaar Card
• NREGA card
• Pan Card
• Ration card
• Copy of bank passbook
• Landline or mobile bill
• electricity bill

Other full forms of KYC

GST: Goods and Services Tax

The full form of GST is Goods and Services Tax. It is an indirect tax that was introduced to simplify the complex indirect tax system in India. According to the Constitution of India, the state government was empowered to levy taxes mainly on the sale of goods and products and the right to levy taxes on the services and production of goods. Due to which different types of taxes were applicable in India, due to which the present tax system of India became very complicated, GST was introduced to simplify it. It is also called ‘One Nation One Tax‘ due to the cancellation of many earlier levies and taxes.

Unlike the VAT regime, GST is a destination-based tax. This means that it will be paid in the state where the end-user or consumer purchases goods or services. GST will not affect export and direct taxes like income tax, corporate tax and capital gains tax. GST will be applicable to all goods except crude petroleum, motor spirit, diesel, aviation turbine fuel and natural gas. India is a federal country where both central and state governments have the right to earn revenue by collecting taxes, hence GST is sub-divided into a few types.

CGST is a centralized part of GST and is collected and levied by the central government. The previous central taxes like Central Sales Tax, Central Excise Tax, Service Tax, Excise Duty under Medical and Toilet Construction Act, Additional Excise Duty Countervailing Duty (CVD), Additional Customs Duty and other centralized taxation have been merged with it. The CGST rate will be the same as the SGST rate.

SGST is collected and levied by the respective state government. Previous state taxes such as state sales tax, luxury tax, entertainment tax, levy on lotteries, entry tax, octroi and other taxation related to movement of goods and services under state authority have merged with it. The revenue collected under SGST comes under the state government. However, the main structure of the state governing body is supervised by the central government. Each state has each state authority to collect SGST.

The central government collects IGST, but is levied by both the central government and the concerned state government. The Central Government, after collection of tax, distributes its share (predetermined as per the agreement between the State Government and the Central Government) to the concerned State. The IGST rate is equal to the total of CGST and SGST rate.

UTGST is levied by the respective Union Territory on the transactions taking place in any Union Territory of India. Delhi (capital of India), Chandigarh, Dadra and Nagar Haveli, Andaman and Nicobar Islands, Daman and Diu, Lakshadweep, Puducherry and Ladakh are union territories of India.

Other full forms of GST

GDP: Gross Domestic Product

The full form of GDP is Gross Domestic Product. It is the market value of all final goods and services within the limits of a nation in a year. It is used to measure the size of a nation’s economy and overall growth or decline in the economy. In India, there are three main sectors that contribute to GDP: industry, service sector and agriculture which includes allied services.

How to calculate GDP

GDP is calculated in three ways. They are Production approach, Income approach and Expenditure approach.

• The production approach is the most direct one which calculates the total product output of each class.
• The expenditure approach calculates the total value of the products like steel, coal, fridge, TV among many others bought by an individual or consumer which should be equal to the expenditure of the things bought.
• The Income approach calculates the sum of all the producers’ incomes where the incomes of the productive factors are equal to the value of their product.

Calculates GDP by expenditure method as follows:

GDP=C+I+G+(X-M)

C: Consumption inside the country
I: Investment inside the country
G: Government expenditure
X: Exports
M: Imports

Consumption: It includes personal expenses related to food, household, medical expenses, rent etc. It is a major contributor to the Indian GDP. It contributes about 60% of GDP.

Investment: Investment in the form of capital which includes the construction of a new mine, purchase of machinery and equipment for a factory, purchase of software, spending on new homes, buying goods and services Is included but does not include investment in financial products as it falls under savings. It is the second-largest contributor to GDP. It contributes about 32% to GDP.

Government expenditure: Government expenditure on final goods and services, including investment expenditure by the government on the purchase of arms for the military, salaries of public servants, etc. Government spending is very important during an economic crisis. The government comes as a hedge to increase consumption or investment during adverse economic conditions.

Export: which includes all goods and services produced for foreign consumption. It has a 20% weightage in the economy. It has the potential to generate mass employment through textiles, gems and jewelery.

Import: which includes any item or service imported for consumption. It contributes about 26%.

Other full forms of GDP

CST: Central Sales Tax

The full form of CST is Central Sales Tax. It is a type of indirect tax levied only on goods sold from one state to another state and not on sales made within the state or import/export of sales. It is governed by the Central State Tax Act, 1956. Central Sales Tax (CST) is charged by a registered dealer at the time of selling the goods outside the state in which he is enlisted. Example: “A” in Karnataka sells and delivers goods to “B” in Kerala. CST is payable in the state where the goods are sold and movement commences. The tax collected is retained by the state in which the tax is collected. This Act provides the definition of inter-state trade, describes the circumstances where CST is applicable, penalties and trade restrictions etc. CST is imposed by the central government of India but its chargeability is state-specific.

Other full forms of CST

CFO: Chief Financial Officer

The full form of CFO is Chief Financial Officer. It is the designation of a senior finance manager in a company who monitors and manages all financial activities in a company. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management. In some companies, the Chief Financial Officer (CFO) is also responsible for the analysis of data. The CFO typically reports to the CEO and to the board of directors, and may additionally sit on the board. Generally, rich experience in finance or related fields along with an education background in finance, business or similar field is required to become a CFO. Most CFOs of large companies have finance qualifications such as a Master of Business Administration (MBA), Master of Science (in either Finance or Accounting), CFA, CA or come from an accounting background such as a Certified Public Accountant. The title is equivalent to finance director, a common title in the UK.

Other full forms of CFO