|RazorpayX Lite||A digital account created in RazorpayX for businesses to start accepting payments or make payouts within a short span of time. Know more about|
|Current Account||An account RazorpayX works to open in partnership with RBL bank or ICICI bank and offers all standard banking features like cheque book, debit card and account statement. Know about|
|NEFT||National Electronic Funds Transfer or NEFT is a form of money transfer routed via RBI by the banks. Transfers from the source bank are sent in batches once in every 30 minutes to the RBI which is then forwarded to the beneficiary bank.|
|RTGS||Real Time Gross Settlement or RTGS is also a form of money transfer routed via RBI by the banks. Unlike NEFT, transactions made using this method are settled instantly. It is used when the minimum amount to be transferred is more than ₹2,00,000/-.|
|IMPS||Immediate Payment Service or IMPS is an instant and 24x7 available money transfer service that is routed through NPCI (National Payments Corporation of India) from the source bank to the beneficiary bank. The max amount cap per transaction is ₹2,00,000/-.|
|UPI||Unified Payments Interface or UPI is another instant and 24x7 available money transfer service that is routed through NPCI for amounts. The maximum amount cap per transaction is ₹1,00,000/-.|
Commonly-used terms in RazorpayX and their definitions.
The following tables list all the commonly used terms and their definitions used in RazorpayX:
|RazorpayX Account||Payouts are made using funds in this account. Currently, there are two types of accounts: |
• RazorpayX Lite
• Current Account
Know more about
|Contact||An entity to whom payouts are made.|
|Fund Account||An entity to which payouts can be made. Currently, RazorpayX supports three types of |
|Transactions||Any transaction made using bank account linked to your RazorpayX account. This can either be a credit (when you add funds to your account) transaction or a debit (payouts made using RazorpayX) transaction. You can view transactions from the X Dashboard or fetch details using the|
|Payment Terms||The number of days you have to pay the invoice once issued to you. This can vary from |
For example, you are issued an invoice on July 01 and the payment terms for this invoice is 15 days.
• This means the invoice has to be paid by July 15.
• If the invoice is not paid by July 15, it is marked as
|Subtotal||The invoice amount without GST, Cess and any other taxes.|
|Total Amount||The invoice amount with GST, Cess and any other taxes. |
For example, if your subtotal is ₹5,000, SGST is ₹200, CGST is ₹200 and Cess is ₹10.
Total amount = Subtotal + SGST + CGST + Cess
Total amount = ₹5,000 + ₹200 + ₹200 + ₹10
Total amount = ₹5,410
|Amount to Vendor||This is the amount paid to the vendor. That is, the Payout amount. |
Amount to Vendor = Total Amount - TDS
Amount to Vendor = ₹5,410 - ₹375
Amount to Vendor = ₹5,035
|Bookkeeping||An accurate day-to-day record of financial transactions.|
|TDS||Tax Deducted at Source or TDS is a tax component which, as per government mandates, you are required to deduct when making payouts to vendors. |
TDS is calculated on the Invoice Subtotal. That is, the invoice amount without GST, Cess and other taxes. Know more about
For example, TDS for a vendor is set to 7.5%.
As per government norms, TDS rates have been reduced by 25% till the end of FY21.
Subtotal (Amount without GST, Cess and other taxes.) = ₹5,000
TDS = ₹5,000 x 7.5%
TDS = ₹375
|GST||Goods and Services Tax or GST is an indirect tax to be paid to the Government by any person or company for goods sold or services rendered. As per the GST Act, it is mandatory for all businesses, small or big to register for GST. Under the GST act, the central government will collect CGST, SGST or IGST depending upon whether the transaction is intrastate or interstate.|
|GSTIN||All businesses that register under GST are allotted a unique 15-digit identification number called the GSTIN.|
|Zoho Books||A financial platform that enables you to create invoices, maintain and reconcile bank accounts, and make tax payments to ensure GST compliance.|
|Tally||A popular accounting software used by organisations to track and maintain accounts.|
|QuickBooks||QuickBooks is a cloud-based accounting software used to create invoices, schedule payments, and generate accounting reports.|
|Reconciliation||Reconciliation is the process of comparing two sets of records to check that figures are correct and in agreement. It is used extensively in the field of accounting.|
|Corporate Card||A corporate credit card works just like a personal credit card. However, using a personal credit card for business expenses is not recommended by regulators in general as it invites audit. With a Corporate Card, you don't have to go through the hassle of segregating your business expenses through your personal card.|
|Add-On Card||Businesses can delegate and give spending ability to different team members from a single credit card account without giving away their card to everyone or going through the hassles of reimbursement.|
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