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CA firm & compliance glossary — GST, TDS, ROC terms explained

Plain-English definitions of the GST, income-tax, TDS and company-law terms Indian CA, CS and law firms use every day. Bookmark this page — we add a term whenever one comes up often enough to be worth defining.

GSTR-1

A monthly or quarterly GST return that reports the sales (outward supplies) a business made. It feeds the buyer’s input tax credit, so late filing has a knock-on effect on clients too.

GSTR-3B

A summary GST return declaring total sales, purchases and tax paid for the period. Most firms file this every month even under the QRMP scheme, where payment is monthly but the detailed GSTR-1 is quarterly.

QRMP scheme

Quarterly Return Monthly Payment — lets small taxpayers file GSTR-1 and GSTR-3B quarterly while still paying tax monthly. Reduces filing frequency without deferring the government’s cash flow.

Input Tax Credit (ITC)

The GST a business paid on its purchases, which it can offset against the GST it owes on sales. Most reconciliation work in a GST practice is about matching ITC claims to what suppliers actually reported.

TDS

Tax Deducted at Source — the payer deducts tax before paying a vendor, employee or contractor and deposits it with the government on their behalf. Deposit and return deadlines are separate, and missing either draws interest.

TCS

Tax Collected at Source — the seller collects tax from the buyer at the time of sale, common in scrap sales, vehicle sales above a threshold, and some e-commerce transactions.

Form 26AS / AIS

Statements showing tax already deducted or collected against a PAN, plus (in AIS) a wider picture of financial transactions reported to the tax department. Used to reconcile a client’s tax credits before filing their return.

Advance tax

Income tax paid in instalments during the year, based on estimated income, instead of one lump sum after year-end. Firms usually recompute client estimates each quarter as new income data comes in.

Tax audit

A mandatory audit of accounts under the Income-tax Act once a business or professional crosses a specified turnover or receipts threshold, resulting in a tax audit report filed before the return.

ROC filing

Returns and forms a company or LLP files with the Registrar of Companies — annual accounts, annual returns and event-based filings such as director or address changes.

AOC-4

The ROC form used to file a company’s financial statements for the year, due within 30 days of the AGM.

MGT-7 / MGT-7A

The ROC annual return form for companies (MGT-7A for small companies and OPCs), summarising shareholding, directors and other company details for the year.

DIN

Director Identification Number — a unique number every company director must hold, obtained once and used for life across all companies they direct.

DSC

Digital Signature Certificate — used to sign filings electronically on the GST, income-tax and MCA portals. Firms typically track DSC expiry dates for every client alongside statutory deadlines.

Engagement letter

A written agreement between a firm and a client setting out the scope of work, fees and responsibilities before an engagement begins. Increasingly expected as good practice even for recurring compliance work.

Work-in-progress (WIP)

Client work that has been done but not yet billed. Tracking WIP by client is how a firm sees revenue leakage — work delivered that never turns into an invoice.

Realisation

The portion of billed fees actually collected from clients, as opposed to raised. A gap between billing and realisation usually points to a collections problem, not a pricing one.

Notice

A formal communication from a tax or regulatory authority asking for clarification, additional documents or a response by a set date. Missing a notice deadline can escalate a routine query into a penalty.

See these terms turn into tracked work.

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