GOODS AND SERVICE TAX

GST is abbreviation for Goods and Service Tax. GST is also known as Value Added Tax (VAT) in few countries.

GST / VAT is a consumption based tax wherein the basic principle is to tax the value addition at the each business stage. To achieve this, tax paid on purchases is allowed as a set off/ credit against liability on output/income.

GST is levied on all transaction of goods and services. Thus, in principle, GST should not differentiate between ‘goods’ and ‘services’.

The GST is divided into three types again :

1. CGST ( Central GST ) ( Collected by Central Govt for its National Development )
2. SGST ( State GST ) ( Collected by State Govt for state govt’s Development)
3. IGST ( Intergrated GST ) ( Collected by Central Govt for Country’s development )

BANKING

When you visit a bank, you must have noticed various types of Accounts Like Savings bank Account, Fixed Deposit, Current Account and Recurring deposit. Many times, it becomes necessary to save small amounts of money at regular intervals, which is very popular in bank as Recurring Deposits. Let’s explore more of it in the current topic.

SHARES AND DIVIDENDS

Certain business organizations need to raise money from public. A company may need money to start business or to start a new project. The sum of money required is called capital. The required capital is divided into small equal parts, and each part is called share. A person who purchases shares of the company becomes a shareholder of the company. The part of the annual profit of a company distributed among its shareholders is called dividend.