Glossary
Compliance, term by term.
An A-Z reference for finance, HR and CA teams navigating GST, TDS, PF, ESI, MCA and every other statutory regime a business in India has to deal with.
A
Accounts payable Accounts Payable (AP) Money a business owes to its suppliers and vendors for goods or services received but not yet paid for. Also called trade payables, sundry creditors, payables AP automation Accounts Payable Automation Accounts payable automation uses technology to digitise and streamline the entire AP lifecycle, from invoice capture and validation through approval routing, matching, and payment execution. Also called AP automation, payables automation, automated accounts payable Accounts receivable Accounts Receivable (AR) Accounts receivable represents the outstanding invoices and money owed to a business by its customers for goods or services delivered on credit. Also called trade receivables, sundry debtors, receivables Financial reporting Accrual Accounting Recording revenue when you earn it and expenses when you incur them - not when cash moves. The accounting standard every Indian company must follow. Also called accrual basis of accounting, accrual method, mercantile system of accounting Payments and banking ACH Transfer Batch-processed electronic bank transfers powering payroll, EMIs, and recurring payments across India. Also called Automated Clearing House transfer, ACH payment, ACH Due dates and calendars Advance Tax Advance tax is the income tax paid in instalments during the financial year in which the income is earned, rather than as a lump sum at year-end, as mandated by the Income Tax Act. Also called advance income tax, pay-as-you-earn tax Collections and DSO Aging Report An aging report categorises outstanding accounts receivable by the length of time invoices have been unpaid, helping businesses identify overdue payments and collection risks. Also called ageing report, AR aging report, accounts receivable aging Documents and contracts Alternative Dispute Resolution (ADR) Resolving commercial and civil disputes outside traditional courts through mediation, arbitration, or conciliation. Also called out-of-court dispute resolution Financial reporting Amortization Spreading the cost of intangible assets (patents, software, licences) over the years they generate value - depreciation's less-talked-about sibling. Also called amortisation Statutory compliance Annual Compliance Yearly regulatory filings and statutory obligations that companies must complete to remain in good standing. Also called annual compliances, yearly compliance Company law and governance Annual General Meeting (AGM) An Annual General Meeting (AGM) is a mandatory yearly meeting of a company's shareholders required under Section 96 of the Companies Act, 2013 to transact ordinary business. Also called annual shareholders meeting TDS returns and challans Annual Information Statement (AIS) A comprehensive statement issued by the Income Tax Department showing all financial transactions reported against your PAN. Also called AIS statement ROC filing Annual Return A mandatory yearly filing submitted to the Registrar of Companies summarizing a company's financial and operational activities. Also called Form MGT-7, company annual return, ROC annual return Trade and foreign exchange Anti-Money Laundering (AML) Regulations and processes to detect, prevent, and report money laundering activities in the financial system. Also called anti money laundering, PMLA compliance GST basics Anti-Profiteering Anti-profiteering under GST requires businesses to pass on the benefit of tax rate reductions or increased ITC to consumers through proportionate price reductions. Also called anti-profiteering provisions, section 171 of the CGST Act Due dates and calendars Assessment Year (AY) The year immediately following the Financial Year in which income earned during the FY is evaluated and taxed. Also called tax assessment year Financial reporting Asset Depreciation Writing down the value of machines, vehicles, and buildings over their useful life - with two different rule books for accounting and tax. Also called depreciation, fixed asset depreciation, depreciation of assets Audit and controls Audit Trail A chronological, tamper-evident record of system activities, transactions, and data changes for accountability and compliance. Also called audit log, edit log, audit history
B
Collections and DSO Bad Debt Bad debt refers to accounts receivable that a business determines are uncollectible and must be written off as a loss, reducing both assets and revenue. Also called bad debts, irrecoverable debt, uncollectible receivable Financial reporting Balance Sheet A financial statement that presents a company's total assets, liabilities, and shareholders' equity at a specific point in time. Also called statement of financial position, statement of assets and liabilities Payments and banking Bank Guarantee Your bank's written promise to pay a third party if you can't deliver on a contract - widely used in tenders and trade. Also called BG, letter of guarantee Bank reconciliation Bank Reconciliation Statement The detective work of matching your books against the bank's records to find every missing rupee. Also called BRS, bank reconciliation, bank rec Trade and foreign exchange Benami Transaction A transaction where property is held under a fictitious or proxy name, prohibited and punishable under Indian law. Also called benami property transaction Payments and banking Beneficiary The person or entity on the receiving end of a payment, insurance claim, trust distribution, or trade finance instrument. Also called payee, beneficiary account holder Purchase orders Blanket Purchase Order A blanket purchase order (BPO) is a long-term purchase agreement with a vendor for recurring goods or services at pre-negotiated prices, quantities, and terms over a defined period. Also called blanket PO, standing purchase order, blanket order Company law and governance Board Resolution A board resolution is a formal decision made by a company's board of directors during a board meeting, recorded in the minutes and required for key corporate actions under the Companies Act, 2013. Also called resolution of the board, directors resolution Statutory compliance Business Compliance The process of adhering to all applicable laws, regulations, and industry standards that govern business operations in India. Also called corporate compliance, regulatory compliance Company law and governance Business Registration The legal process of registering a business entity in India, obtaining required licenses and a government-recognized legal identity. Also called company registration, company incorporation
C
Company law and governance Cap Table (Capitalization Table) A detailed spreadsheet that tracks equity ownership, share classes, and dilution across all stakeholders of a company. Also called capitalisation table, shareholding table Working capital Cash Flow Management Keeping enough actual cash in the business to pay what you owe, when you owe it - not just being profitable on paper. Also called cash management, cashflow management, liquidity management Trade and foreign exchange Central Excise A tax on the manufacture of goods within India, levied by the central government and largely subsumed by GST in 2017. Also called central excise duty Company law and governance CIN (Corporate Identity Number) A unique 21-digit alphanumeric identifier assigned to every company registered with the Registrar of Companies in India. Also called company identification number, corporate identification number Company law and governance Circular Resolution A board resolution passed by circulating a draft to all directors for approval without convening a physical meeting. Also called resolution by circulation, written resolution Company law and governance Companies Act, 2013 The primary legislation governing the incorporation, management, and dissolution of companies in India. Also called Companies Act 2013, the Companies Act Company law and governance Company Secretary (CS) A governance professional responsible for ensuring a company's regulatory compliance and advising the board on legal matters. Also called practising company secretary, corporate secretary Audit and controls Compliance Audit A systematic examination to verify that an organization adheres to applicable laws, regulations, and internal policies. Also called regulatory audit, compliance review Due dates and calendars Compliance Calendar A structured schedule of all regulatory filing deadlines and statutory obligations a business must fulfill throughout the year. Also called statutory due date calendar, filing calendar, compliance tracker Statutory compliance Compliance Management A systematic approach to identifying, tracking, and fulfilling an organization's regulatory obligations across all applicable laws. Also called compliance management system, compliance programme Statutory compliance Compliance Officer A designated professional responsible for overseeing and ensuring an organization's adherence to regulatory and legal requirements. Also called chief compliance officer, CCO GST basics Composition Scheme The Composition Scheme is a simplified GST compliance option for small taxpayers with turnover up to Rs. 1.5 crore, allowing them to pay tax at a fixed rate without maintaining detailed invoicing records. Also called GST composition scheme, composition levy, section 10 composition Documents and contracts Contract Management Contract management is the process of creating, executing, monitoring, and renewing vendor agreements to ensure compliance with agreed terms, pricing, and regulatory requirements. Also called contract lifecycle management, CLM Expense management Corporate Card A corporate card is a company-issued credit or prepaid card that employees use for authorised business expenses, providing centralised spending control, real-time visibility, and simplified reconciliation. Also called company card, corporate credit card, business card Company law and governance Corporate Governance The system of rules, practices, and processes by which a company is directed and controlled for the benefit of all stakeholders. Also called governance framework, board governance Accounts receivable Credit Note A credit note is a document issued by a seller to a buyer reducing the value of a previously issued invoice, typically due to returns, pricing corrections, or deficiency in services. Also called credit memo, credit memorandum Company law and governance CSR (Corporate Social Responsibility) A mandatory obligation for qualifying Indian companies to spend at least 2% of average net profits on social welfare activities. Also called CSR spending, section 135 CSR Payments and banking Current Account The business bank account - unlimited transactions, no interest, and the backbone of every company's financial operations. Also called business current account, checking account Trade and foreign exchange Customs Duty A tax levied on goods imported into or exported from India, administered by the Central Board of Indirect Taxes and Customs. Also called import duty
D
Collections and DSO Days Sales Outstanding (DSO) Days Sales Outstanding measures the average number of days a business takes to collect payment after a sale, indicating the efficiency of its accounts receivable process. Also called debtor days, average collection period, receivable days Accounts payable Debit Note A debit note is a document issued by a buyer to a seller indicating a reduction in the amount payable, typically due to goods returned, pricing errors, or defective supplies. Also called debit memo, debit memorandum Payments and banking Demand Promissory Note A signed, unconditional "I owe you" that's legally enforceable on demand - still widely used in Indian lending. Also called DPN, promissory note payable on demand Statutory compliance Digital India India's flagship government programme to transform the country into a digitally empowered society and knowledge economy. Also called Digital India programme Payments and banking Digital Payment Any payment made electronically - via UPI, cards, net banking, or wallets - without physical cash changing hands. Also called electronic payment, e-payment, online payment Director KYC DIN (Director Identification Number) A unique 8-digit identification number assigned by the MCA to individuals appointed as directors of Indian companies. Also called director ID number Company law and governance Dormant Company An inactive company registered under the Companies Act with minimal compliance obligations while it holds assets or awaits future use. Also called inactive company, section 455 company Director KYC DSC (Digital Signature Certificate) An electronic signature certificate used to authenticate the identity of signers on digital documents and government filings in India. Also called digital signature, class 3 digital signature Documents and contracts Due Diligence (DD) A comprehensive investigation and analysis of a business conducted before an investment, acquisition, or strategic partnership. Also called financial due diligence, legal due diligence Collections and DSO Dunning Dunning is the systematic process of sending increasingly firm payment reminders and collection notices to customers with overdue invoices. Also called payment reminders, dunning process, collections follow-up
E
Trade and foreign exchange Directorate of Enforcement (ED) India's financial investigation agency responsible for enforcing FEMA and PMLA, investigating economic crimes and money laundering. Also called Enforcement Directorate E-invoicing E-Invoice A GST invoice authenticated in real time by the Invoice Registration Portal and assigned a unique Invoice Reference Number (IRN) and QR code. Also called electronic invoice, e-invoicing, GST e-invoice E-invoicing E-Way Bill A mandatory electronic document required for the movement of goods valued at more than Rs. 50,000 under India's GST regime. Also called eway bill, electronic way bill, EWB Payroll and labour compliance Employee State Insurance (ESI) A social security and health insurance scheme for Indian workers providing medical, sickness, maternity, and disability benefits. Also called ESIC, ESI contribution, ESI scheme Statutory compliance Environmental Compliance Adherence to environmental laws, permits, and standards governing pollution control, waste management, and natural resource use. Also called environmental clearance compliance, pollution control compliance Payments and banking Escrow Account A neutral third-party account that holds money until both sides of a deal fulfil their obligations. Also called escrow, escrow arrangement Company law and governance ESOP (Employee Stock Ownership Plan) A benefit plan that grants employees the right to purchase company shares at a predetermined price after completing a vesting period. Also called employee stock option plan, employee stock options, stock option scheme Trade and foreign exchange Excise Duty An indirect tax on the manufacture or production of goods within a country, distinct from customs duty on imports. Also called excise tax, excise Expense policy Expense Audit An expense audit is a systematic review of employee expense claims to verify accuracy, policy compliance, proper documentation, and legitimacy of business expenditures. Also called expense report audit, expense claim audit Expense policy Expense Policy An expense policy is a formal company document that defines rules for employee spending, reimbursement limits, approval workflows, and documentation requirements for business expenses. Also called travel and expense policy, reimbursement policy, T&E policy Trade and foreign exchange Export Promotion Government schemes and incentives designed to boost India's exports and support exporters in accessing international markets. Also called export incentives, export promotion schemes
F
Payroll and labour compliance Factories Act, 1948 The central legislation governing the health, safety, welfare, and working conditions of workers employed in factories in India. Also called Factories Act 1948 Trade and foreign exchange FATF Compliance Adherence to the Financial Action Task Force standards for combating money laundering, terrorist financing, and proliferation financing. Also called Financial Action Task Force compliance, FATF recommendations Trade and foreign exchange FCRA (Foreign Contribution Regulation Act) India's law regulating the acceptance and utilization of foreign contributions by NGOs, associations, and individuals. Also called Foreign Contribution (Regulation) Act, FCRA 2010 Trade and foreign exchange FDI Policy India's regulatory framework governing the entry, routes, sectoral limits, and conditions for Foreign Direct Investment. Also called foreign direct investment policy, FDI rules, consolidated FDI policy Trade and foreign exchange FEMA (Foreign Exchange Management Act) India's primary legislation governing foreign exchange transactions, cross-border investments, and external trade payments. Also called FEMA 1999, foreign exchange regulations Audit and controls Financial Audit An independent examination of a company's financial statements to provide assurance on their accuracy and true and fair view. Also called statutory audit, audit of financial statements, external audit Due dates and calendars Financial Year (FY) The 12-month accounting period from April 1 to March 31 used for tax filings, financial reporting, and statutory compliance in India. Also called accounting year, tax year Financial reporting Fiscal Year The 12-month accounting period used by governments and businesses in India, running from April 1 to March 31. Also called fiscal period, budget year Trade and foreign exchange Foreign Contribution Money, articles, or securities received from foreign sources by Indian individuals, associations, or companies, regulated under FCRA. Also called foreign donation, foreign funding TDS returns and challans Form 16 A TDS certificate issued by employers to employees certifying the salary paid, tax deducted at source, and deposited with the government. Also called salary TDS certificate TDS returns and challans Form 26AS Form 26AS is an annual consolidated tax statement issued by the Income Tax Department showing all taxes deducted, collected, or paid against a taxpayer's PAN. Also called tax credit statement, annual tax statement TDS returns and challans TDS Certificate (Form 16/16A) A TDS certificate is a document issued by the deductor to the deductee certifying the amount of TDS deducted and deposited, issued as Form 16 for salary and Form 16A for non-salary payments. Also called Form 16A, Form 16, TDS deduction certificate
G
3-way matching Goods Receipt Note (GRN) A goods receipt note is a document created when goods are physically received at the buyer's location, recording the quantity, condition, and details of items delivered against a purchase order. Also called goods received note, goods receipt, material receipt note Procurement Government e-Marketplace (GeM) India's online procurement platform for government buyers to purchase goods and services from registered sellers. Also called GeM portal, government eMarketplace GST basics GST (Goods and Services Tax) India's unified indirect tax that replaced multiple central and state levies, creating a single national market for goods and services. Also called Goods & Services Tax GST annual return GST Annual Return (GSTR-9) GSTR-9 is the annual return that every regular GST taxpayer must file, consolidating details of outward supplies, inward supplies, ITC claimed, and taxes paid during the financial year. Also called annual GST return, Form GSTR-9 GST annual return GST Audit GST audit is the examination of a taxpayer's records, returns, and compliance by a tax authority or chartered accountant to verify the correctness of turnover, taxes paid, and ITC claimed. Also called GST departmental audit, audit under GST, section 65 audit GST basics GST Council The GST Council is India's constitutional body comprising Union and State finance ministers that makes recommendations on GST rates, rules, exemptions, and administrative procedures. Also called Goods and Services Tax Council GST reconciliation GST Reconciliation The process of matching your purchase records with supplier-filed GSTR-2A/2B data to ensure accurate and compliant Input Tax Credit claims. Also called GST recon, GSTR reconciliation, 2A/2B reconciliation GST basics GST Registration GST registration is the process by which a business obtains a unique GSTIN from the GST portal, making it a registered taxable person under India's Goods and Services Tax law. Also called GSTIN registration, GST enrolment, Form GST REG-01 GST returns GSTR-1 A monthly or quarterly GST return filed by registered businesses to report all outward supplies (sales) made during the tax period. Also called Form GSTR-1, outward supplies return, GST sales return GST returns GSTR-3B A monthly self-declared summary return where businesses report their GST liability, claim Input Tax Credit, and pay the net tax due. Also called Form GSTR-3B, GST summary return, monthly summary return
H
I
Payments and banking IMPS (Immediate Payment Service) India's 24x7 instant interbank transfer system - money in the beneficiary's account within seconds, any day, any time. Also called IMPS transfer Income Tax Act 2025 Income Tax Act, 1961 The primary legislation governing the levy, assessment, and collection of income tax in India. Also called Income Tax Act 1961, IT Act, the old Income Tax Act Due dates and calendars Income Tax Return (ITR) The annual filing submitted to the Income Tax Department declaring income, deductions, and tax liability for a financial year. Also called return of income, income tax filing Payroll and labour compliance Industrial Disputes Act, 1947 The central legislation providing mechanisms for investigation, settlement, and prevention of industrial disputes in India. Also called Industrial Disputes Act 1947, ID Act Input tax credit Input Tax Credit (ITC) A mechanism that allows businesses to claim credit for GST paid on purchases and expenses, reducing their overall output tax liability. Also called input credit, GST input credit, input tax credit under GST Company law and governance Insider Trading The illegal practice of trading in company securities using material unpublished price-sensitive information not available to the public. Also called trading on unpublished price sensitive information, UPSI trading Documents and contracts Intellectual Property (IP) Legal rights over creations of the mind, including patents, trademarks, copyrights, designs, and geographical indications. Also called intellectual property rights, IPR, IP rights Audit and controls Internal Audit An independent assessment function within an organization that evaluates and improves the effectiveness of risk management, controls, and governance. Also called internal audit function, management audit Working capital Invoice Factoring Invoice factoring is a financial arrangement where a business sells its outstanding invoices to a third party (factor) at a discount in exchange for immediate cash. Also called factoring, receivables factoring Invoice processing Invoice Management The end-to-end process of creating, receiving, tracking, approving, and processing invoices for timely payments and accurate financial records. Also called invoice processing, invoice handling, invoice workflow 3-way matching Invoice Matching Invoice matching is the process of comparing a vendor invoice against supporting documents such as purchase orders and goods receipt notes to verify accuracy before approving payment. Also called 3-way matching, three-way match, 2-way matching
K
L
Payroll and labour compliance Labour Compliance Adherence to India's extensive employment and labour laws covering wages, working conditions, social security, and industrial relations. Also called labour law compliance, labor compliance, HR compliance Trade and foreign exchange Legal Entity Identifier (LEI) A unique 20-character alphanumeric code that identifies legal entities participating in financial transactions globally. Also called LEI code, LEI number Statutory compliance Legal Metrology The regulation of weights, measures, and packaged goods labeling to ensure accuracy and fairness in commercial transactions. Also called Legal Metrology Act, packaged commodities rules, weights and measures rules Trade and foreign exchange Letter of Credit (LC) A bank-backed guarantee that a seller will get paid - the backbone of international trade when buyer and seller don't know each other. Also called documentary credit, L/C Company law and governance Liquidation The process of winding up a company, converting its assets to cash, paying creditors, and distributing residual assets to shareholders. Also called winding up, company winding up Company law and governance LLP (Limited Liability Partnership) A hybrid business structure that combines the operational flexibility of a partnership with the limited liability protection of a company. Also called limited liability partnership firm Documents and contracts Lok Adalat People's courts in India providing free, informal, and binding dispute resolution for pre-litigation and pending cases. Also called people’s court TDS rates and sections Lower Deduction Certificate A lower deduction certificate under Section 197 authorises deductors to deduct TDS at a rate lower than the prescribed rate or at nil, based on the deductee's estimated tax liability. Also called lower TDS certificate, Form 128, Form 13 certificate
M
Statutory compliance Mandatory Compliance Legally required filings, registrations, and obligations that businesses must fulfill to operate lawfully in India. Also called mandatory compliances, statutory obligations Spend management Maverick Spending Maverick spending refers to purchases made outside of an organisation's approved procurement processes, contracts, or preferred vendor agreements. Also called maverick spend, rogue spend, off-contract spend ROC filing MCA (Ministry of Corporate Affairs) The Government of India ministry responsible for company registration, corporate regulation, and enforcement of the Companies Act and LLP Act. Also called MCA21, corporate affairs ministry Employee reimbursements Mileage Reimbursement Mileage reimbursement is a payment made by employers to employees who use personal vehicles for business travel, calculated based on distance driven and a predetermined per-kilometre rate. Also called mileage allowance, conveyance reimbursement, per-kilometre reimbursement Payroll and labour compliance Minimum Wages Act, 1948 India's central labour legislation mandating minimum wage rates for workers employed in scheduled employments. Also called Minimum Wages Act 1948 MSME payments MSME (Micro, Small and Medium Enterprises) A government classification for businesses based on investment and turnover that enables access to subsidies, priority lending, and special schemes. Also called micro and small enterprises, Udyam registered enterprise, MSE MSME payments MSME Vendor Compliance MSME vendor compliance refers to the regulatory obligations buyers have when transacting with micro, small, and medium enterprise vendors, particularly regarding payment timelines under Section 43B(h). Also called MSME payment compliance, section 43B(h) compliance, MSME 45-day rule
N
Payments and banking NEFT (National Electronic Funds Transfer) India's RBI-operated electronic payment system enabling bank-to-bank fund transfers on a deferred net settlement basis. Also called NEFT transfer Company law and governance Nidhi Company A type of non-banking financial company that borrows and lends money exclusively among its members, regulated under the Nidhi Rules. Also called mutual benefit society, section 406 company Payments and banking Nostro Account An Indian bank's foreign currency account held abroad - the hidden infrastructure behind every cross-border payment. Also called nostro, foreign currency correspondent account
O
Company law and governance One Person Company (OPC) A company with a single member, providing corporate status and limited liability to an individual entrepreneur under the Companies Act, 2013. Also called single-member company Working capital Overdraft A credit line that lets you spend more than your bank balance - interest only on what you use, for as long as you use it. Also called overdraft facility, OD limit, bank overdraft
P
Vendor onboarding PAN (Permanent Account Number) A unique 10-character alphanumeric identifier issued by the Income Tax Department of India to every taxpayer. Also called PAN card, PAN number Bank reconciliation Payment Reconciliation Payment reconciliation is the process of matching incoming payments against outstanding invoices to ensure accurate accounting and identify discrepancies. Also called payment matching, cash application, payments reconciliation Accounts payable Payment Terms Payment terms define the conditions under which a seller expects payment from a buyer, including the due date, early-payment discounts, and penalties for late payment. Also called credit terms, terms of payment, net payment terms Statutory compliance Penalty for Non-Compliance Penalties for non-compliance in India include financial fines, interest charges, director disqualification, prosecution, and company strike-off imposed by regulatory authorities for failing to meet statutory obligations. Also called non-compliance penalty, late filing penalty, late fee Company law and governance Penny Stock Low-priced, thinly traded stocks of small companies that are subject to high volatility, manipulation risk, and regulatory scrutiny in India. Expense policy Per Diem Per diem is a fixed daily allowance paid to employees to cover routine expenses like meals, local transport, and incidentals during business travel, replacing the need for individual receipt submission. Also called daily allowance, per diem allowance GST basics Place of Supply Place of Supply is the GST concept that determines the location where a supply is deemed to occur, which in turn decides whether IGST, CGST/SGST, or UTGST applies to the transaction. Also called place of supply rules, place of supply under GST Vendor management Preferred Vendor A preferred vendor is a pre-approved supplier who has met stringent evaluation criteria and is given priority status for procurement within specific categories. Also called preferred supplier, approved vendor, approved supplier Procure to pay Procure-to-Pay (P2P) Procure-to-pay (P2P) is the complete business process covering all steps from identifying a purchasing need through requisition, purchase order, goods receipt, invoice processing, and vendor payment. Also called purchase-to-pay, P2P cycle, procure to pay Payroll and labour compliance Professional Tax (PT) A state-level tax levied on salaried employees, professionals, and traders based on their income slabs. Also called profession tax, P-tax Payroll and labour compliance Provident Fund (PF) A mandatory retirement savings scheme where both employer and employee contribute a portion of the employee's salary each month. Also called EPF, employees provident fund, EPFO contribution Purchase orders Purchase Order (PO) A purchase order is a formal document issued by a buyer to a vendor that specifies the items, quantities, agreed prices, and delivery terms for a procurement transaction. Also called PO number, purchase order form Procurement Purchase Requisition A purchase requisition is an internal document raised by a department or employee to request the procurement team to purchase specific goods or services on their behalf. Also called purchase request, PR, indent
R
Payments and banking Razorpay India's dominant payment gateway - processing card, UPI, and net banking payments for businesses of every size. Also called Razorpay payment gateway Payments and banking Remittance Money sent across borders - whether it's an NRI supporting family, a business paying an overseas supplier, or a student's tuition transfer. Also called outward remittance, inward remittance, foreign remittance Procurement Request for Quotation (RFQ) A Request for Quotation (RFQ) is a formal document sent by a buyer to potential vendors inviting them to submit pricing and terms for specified goods or services. Also called request for quote, quotation request, RFQ process Input tax credit Reverse Charge Mechanism (RCM) A GST provision where the recipient of goods or services is liable to pay the tax instead of the supplier. Also called reverse charge, reverse charge under GST ROC filing RoC (Registrar of Companies) The government authority responsible for registering, regulating, and administering companies and LLPs across India. Also called Registrar of Companies office, company registrar ROC filing ROC Filing ROC filing refers to the mandatory submission of statutory documents, returns, and forms to the Registrar of Companies under the Companies Act, 2013 through the MCA portal. Also called ROC annual filing, ROC compliance, MCA filing Payments and banking RTGS (Real Time Gross Settlement) RBI's system for instant, irrevocable, high-value transfers - mandatory for payments above Rs 2 lakh. Also called RTGS transfer
S
GST basics SAC Code (Service Accounting Code) A classification system used under GST to categorize and identify different types of services for taxation purposes. Also called SAC, services accounting code Company law and governance Secretarial Audit A secretarial audit is an independent examination of a company's compliance with corporate laws, rules, and regulations conducted by a practicing Company Secretary under Section 204 of the Companies Act, 2013. Also called Form MR-3 audit, section 204 audit TDS rates and sections Section 194C / 194H / 194J Key Income Tax Act sections prescribing TDS rates for contractor payments, commission or brokerage, and professional or technical fees. Also called section 194C, section 194H, section 194J Spend management Spend Analysis Spend analysis is the process of collecting, cleansing, classifying, and analysing an organisation's expenditure data to identify savings opportunities, improve compliance, and inform procurement strategy. Also called spend analytics, spend visibility, procurement spend analysis Statutory compliance Statutory Compliance Statutory compliance refers to the legal obligation of businesses to adhere to all laws, regulations, and rules enacted by the central and state governments applicable to their operations. Also called statutory compliances, legal compliance, regulatory compliance in India Payments and banking SWIFT Code The 8 or 11-character address that tells the global banking network exactly which bank and branch to route your international payment to. Also called BIC code, SWIFT BIC, bank identifier code
T
TDS TAN (Tax Deduction Account Number) A unique 10-digit alphanumeric number required by all persons responsible for deducting or collecting tax at source. Also called TAN number, deductor account number TDS TDS (Tax Deducted at Source) A system where the payer deducts income tax at prescribed rates before paying the payee, and deposits it with the government on the payee's behalf. Also called withholding tax, tax deduction at source, tax withheld at source TDS returns and challans TDS Challan A TDS challan is the prescribed form (Challan No. 281/ITNS 281) used to deposit Tax Deducted at Source with the Indian government through authorised banks. Also called challan 281, ITNS 281, TDS payment challan TDS returns and challans TDS Return A quarterly statement filed by tax deductors detailing all TDS deductions made and deposited during each quarter of the financial year. Also called TDS statement, quarterly TDS return, Form 24Q TDS returns and challans TRACES Portal TRACES (TDS Reconciliation Analysis and Correction Enabling System) is the government's online portal for TDS/TCS administration, return processing, certificate generation, and compliance management. Also called TRACES, TDS Reconciliation Analysis and Correction Enabling System Expense management Travel and Expense Management (T&E) Travel and Expense Management (T&E) is the end-to-end process of planning, booking, tracking, approving, reimbursing, and reporting business travel and associated employee expenses. Also called travel and expense, T&E management, travel expense management
U
V
Vendor management Vendor Consolidation Vendor consolidation is the strategic reduction of the supplier base by eliminating redundant or underperforming vendors to improve efficiency, compliance, and negotiating power. Also called supplier consolidation, supplier rationalisation, vendor rationalisation Vendor onboarding Vendor Onboarding Vendor onboarding is the structured process of registering, verifying, and integrating a new supplier into your procurement and accounts payable systems. Also called supplier onboarding, vendor registration, vendor empanelment Vendor risk Vendor Risk Assessment Vendor risk assessment is the systematic evaluation of a supplier's compliance, financial stability, and operational reliability to identify and mitigate potential risks. Also called supplier risk assessment, third-party risk assessment, vendor due diligence Vendor management Vendor Scorecard A vendor scorecard is a structured evaluation tool that measures and tracks supplier performance across key metrics like compliance, delivery, quality, and cost. Also called supplier scorecard, vendor rating, vendor performance scorecard Company law and governance Vesting Schedule The timeline that determines when employees earn full ownership of stock options or equity granted under an ESOP. Also called ESOP vesting schedule, vesting period Collections and DSO Virtual Account A unique account number per customer that auto-matches incoming payments - no more chasing "who paid what." Also called virtual account number, VAN, virtual bank account Documents and contracts Virtual Data Room (VDR) A secure online repository used for storing and sharing confidential documents during due diligence, fundraising, and M&A processes. Also called data room, deal room
W
Company law and governance Waterfall Analysis A method of calculating how proceeds from a liquidity event are distributed among shareholders based on their rights and preferences. Also called liquidation waterfall, distribution waterfall, exit waterfall Payments and banking Wire Transfer Electronic money movement between banks - domestically via NEFT/RTGS, internationally via SWIFT - the workhorse of business payments. Also called bank wire, telegraphic transfer, TT
Missing something
Can't find a term?
We add new glossary entries weekly. If there is a compliance concept you would like us to define, tell us and it goes on the list.