SUMMER TRAINING REPORT

ON

“ACCOUNTING, FINANCE &

MANAGEMENT”

SUPERVISOR: SUBMITTED BY:

Miss. Priyanshi Srivastava Astha Pandey
(Faculty Guide) Roll No.: 818638
B.Voc. (Banking & Finance) 5th Sem

DEPARTMENT OF BANKING & FINANCE

DEEN DAYAL UPADYAY KAUSHAL KENDRA
NATIONAL PG COLLEGE, LUCKNOW

1
2
 DECLARATION BY THE STUDENT

This is to certify that the present Summer Internship Report entitled

“Accounting, Finance & Management” is my original work. This Summer
Internship Report fulfils the requirement of the “B.Voc (Banking &
Finance)” degree of this University. It does not form the basis for the award
of any degree or diploma from any other university or institution.

Astha Pandey
Roll No: 818638
B.Voc (Banking & Finance)
5th Semester

3
 ACKNOWLEDGEMENT

I acknowledge the sincere assistance provided to me from several rather

unexpected quarters during the course of execution of this study. It would
be a mammoth task to place on record my gratitude to each and every one
of them but a whole hearted attempt would be made nevertheless, least I be
branded ungrateful.

Astha Pandey
Roll No: 818638
B.Voc (Banking & Finance)
5th Semester

4
 TABLE OF INDEX

Chapter Page No.

1. CHAPTER 1: Introduction 07 – 17
Introduction of Organization Business Sector
About the Industry
Mission and Vision

Organizational Structure
Organizational Structure
Top 11 CA Firms in India

Competition Overview (20 Firms)

2. CHAPTER 2: Company Profile 18 – 29

About the Company
Departments of CA Company

Services Offering
Audit

3. CHAPTER 3: Conceptual Discussion 30 – 71

Objective of the Study
Job Description
Overview of TDS
TDS Returns
Process Flow of TDS

Overview of Vouching
Preparation of books on Tally

5
 Preparation of Partnership Deed
Overview of VAT
Overview of Tally ERP9
AS 26 Intangible Assets
Overview of Auditing
Overview of GST
Overview of Taxation

4. CHAPTER 4: Work and Research 72 – 82

Description of accomplished work in Organization

Description of Research under the supervision
Taxation

5. CHAPTER 5: Learning, Conclusion & Suggestions 83 – 92

Behavioral Learning From Organization
Suggestions and Recommendations
Limitations
Conclusion

6. CHAPTER 6: Bibliography 93 – 94
References

6
 CHAPTER 1
INTRODUCTION

7
 INTRODUCTION OF THE ORGANIZATION’S
BUSINESS SECTORS

About The Industry

Organization is working as Chartered Accountants firm under the rules and
regulations and code of ethics designed for CA firms by ICAI (The Institute
of Chartered Accountants of India).

The Institute of Chartered Accountants of India (ICAI or the Institute) was

established as statutory body on July 1, 1961 under Chartered Accountants
Ordinance, 1961 to regulate the profession of accountancy in the country.

ICAI is governed by the Council which consists of nineteen members.

Fifteen members are elected from amongst the members for a period of
four years. The remaining four of the Council members are nominated by
the Government of India.

These kinds of firms provide different kinds of professional services like

audit, taxation and management consultancy to its clients.

The Chartered Accountancy course is conducted by the Institute of

Chartered Accountants of India, which has its headquarters in New Delhi, 5
regional offices (Calcutta, Kanpur, Chennai, Mumbai and New Delhi) and
81 branches under these regional centers.

8
 MISSION & VISION

Mission of ICAI
Is to achieve excellence in professional competence, add value to
businesses and economy, safeguard public interest; ensure ethical practices
and good corporate governance while recognizing the needs of
globalization.

Vision of ICAI

The profession of Chartered Accountants in India should be the benchmark

of professional excellence upholding the principles of integrity,
transparency and accountability.

9
 ORGANISATIONAL STRUCTURE

A hierarchy is an arrangement of items (objects, names, values, categories,

etc.) in which the items are represented as being "above," "below," or "at
the same level as" one another and with only one "neighbour" above and
below each level. These classifications are made with regard to rank,
importance, seniority, power status, or authority. A hierarchy of power is
called a power structure. Following is the organizational hierarchy of the
firm:-

 Partners
 Directors
 Senior Managers
 Managers
 Supervisors
 Senior Trainee Students
 Junior Trainees

Various levels of the firm have different functions. Partners are often the
founders of the firms. Most of the firms’ names are associated with the
names of partners. They are basically the main parties who issue and sign
any report (specifically audit report) on behalf of the firm. Partners mostly
communicate with the Senior Managers. In other words, the progress of any
report and any inquiry is made from the Senior Managers and hierarchal
structure is strictly followed to avoid any disruption.

Managers are inquired of by Senior Managers and mostly manager manage

audit field works etc. and after field work managers with cooperation of

10
senior managers makes and finalize any audit report to be issued. Senior
Manager is a qualified Chartered accountant having more than 10 year
working experience.

Field work and information collection and implementation of policies by

adopting changes in rules & regulations is the main responsibility of
supervisors and trainees. They use different kind of techniques for error and
fraud detection.

11
TOP 11 CA FIRMS IN INDIA

1. Deloitte: -

Deloitte, in terms of Revenue, is the largest professional services network

in the world. Also on the basis of a number of professionals, it is the largest
professional services network in the world.

Deloitte is known for providing audit, tax, consulting, enterprise risk and
financial advisory services to more than 200,000 professionals in over 150
countries. They are the Advisors to many of the World’s most admired
Brands.

The Consulting services of industries work on the theory of ‘Providing

practical perspectives and solutions to queries.’ Deloitte believes in ‘Good
to make it great!’ They believe in ‘helping clients to become Leaders’.

2. PWC: -

Price Waterhouse Coopers has been the world’s second largest

professional services network in terms of Revenue as surveyed in 2014 and
is one of the Big Four Auditors and stands neck to neck with Deloitte, EY
and KPMG.

12
The Firm believes in helping resolve complex issues and identifies
opportunities. People from all backgrounds such as arts, business,
economics, engineering, finance, health, information technology, law and
more are entertained.

3. KPMG: -

Having its global headquarters in Amstelveen, Netherlands, KPMG has

been considered as one of the largest professional services companies in the
world.

It is amongst the Big Four auditors, standing along with PWC, Deloitte and
EY. The professionals employed with this firm, KPMG is 162,000 people
and performs three services, viz. audit, tax, and advisory. The tax and
advisory services provided by the firm are further divided into various
service groups.

4. Ernst & Young: -

Ernst & Young abbreviated as EY is a multinational professional services

firm having its headquarters in London, United Kingdom. In terms of
Revenue, it has been ranked as the world’s third largest professional
services firm surveyed in 2012 and is one of the four biggest audit firms.

13
5. BDO International: -

BDO International stands at the fifth rank for providing the largest
accountancy network in the world.

It is a worldwide professional services network and one of the best public

accountancy firms. It has its competency is in serving national and
international clients.

Following a survey conducted in 2014, September, BDO has its Member

Firms in 151 countries and takes pride in employing around 60,000
Partners and staff in 1,328 offices throughout the world.

6. Grant Thornton International: -

Grant Thornton is a UK based firm which has its branches in almost 125
countries. This firm is known for generating very high revenue which is
more than 4.5 billion dollars.

It is providing services in assurance, tax and advisory firms. Grant

Thornton is also known for providing services in Assurance and Taxation
and other consultancy services relating the financial matters.

It has been operating for 100 years. Grant Thornton has provided valued
service to organizations with the potential to grow and to operate

14
internationally. It makes the professionals adapt to market conditions and
deal with complex events or transactions.

The member office of Grant Thornton is situated in Connaught Place in

New Delhi.

7. RSM International: -

RSM ranks the 7th largest among the professional services network for
audit, tax and advisory firms. It takes pride in holding the 6th rank as the
largest global provider of tax services in the world.

It has its fully independent member firms and correspondents in 111

countries surveyed, September 2014. The member firms of RSM
International have a combined total of 35,396 staff which includes 3,221
partners in 718 offices.

Three of the original member firms of the organization are Robson Rhodes
(UK), Salustro Reydel (France) and RSM McGladrey/McGladrey & Pullen
(USA).

8. SS Kothari , Mehta & Co.: -

The best thing about this Firm is that it has over 55 years in existence. SS
Kothari has been one of the highly reputed firms in Delhi and has its
branches in 100 other countries.

15
It has created a strong National presence through a network creation of 6
offices and 20 associates which covers almost all the regions of the
Country. With a combination of Partners and Associates, it has covered
almost all the parts of the country.

It offers services in BPO, Tax Advisory Services, Merger and Acquisition,

Statutory Audit Services, Corporate Laws and other different areas.

9. Lodha & Co.: -

This is also a vintage firm set up in 1941 and has its offices all over India.
They operate in locations like Kolkata (Calcutta), Chennai (Madras),
Hyderabad, Mumbai (Bombay), New Delhi and Jaipur.

Lodha & Co. has proficiency in providing professional services to a large

number of corporate clients, central banks, banks, insurance companies,
public sector corporations etc. They operate both in India and
Internationally.

10. Sahni Natrajan & Bahl (SNB): -

SNB is a national Indian firm which is based in Delhi and provides its
services in the field of audit, consulting, accounting and allied areas. It was
established in 1981 and is one of the leading Firms in India having its

16
Headquarters in New Delhi and branch offices in Bangalore and Mumbai.

The Firm has kept its Aim for providing services of the highest quality,
resulting in the addition of value to each of its clients in a totally
professional, independent and ethical manner.

It is known for providing services in various areas like Taxation, Auditing

and Internal Audit, Corporate Laws and several other services relating to
services.

11. Luthra & Luthra: -

Luthra & Luthra is a Delhi-based firm having six other partners. The
Firm was established in 1979.

It has been one of the most leading firms in India and has been providing its
services in audit, advisory, tax and corporate law matters. It is bound to
provide high-end services to its clients.

The success of Firms depends on its professionals, thus the Firm focuses on
training its employees such that they could find solutions to the various
needs and queries of its clients and thus, achieving the Organizational
goals. It has its branches in Delhi, Mumbai, Bangalore, Chennai and Noida.
This firm is known for providing its service in different fields like
Taxation, Corporate Laws, Foreign Exchange Compliance and SEBI
related services in cooperation with 18 highly qualified personnel.

17
 CHAPTER 2
COMPANY PROFILE

18
 ABOUT THE COMPANY

Priyanka Shukla CA & Co. is a leading chartered accountancy firm. It is

rendering comprehensive professional services which include audit,
management consultancy, tax consultancy, accounting services,
manpower management, secretarial services etc.

It is a professionally managed firm. The team consists of distinguished

chartered accountants, corporate financial advisors and tax consultants.
The firm represents a combination of specialized skills, which are geared
to offers sound financial advice and personalized proactive services.
Those associated with the firm have regular interaction with industry and
other professionals which enables the firm to keep pace with
contemporary developments and to meet the needs of its clients.

Priyanka Shukla CA & Co. has a clear vision for the future growth and
development of financial markets and services and researches to stay
ahead of these trends and developments. Priyanka Shukla CA & Co.
moulds its operations and areas of competencies and introduces services
so as to assist clients in their business operations and growth.

19
 DEPARTMENTS OF CA COMPANY

Priyanka Shukla CA & Co. is having its head office in Lucknow. Almost
all the controls and regulations are dealt at head office in Lucknow. All
the offices constitute different number of departments who basically
handle their respective functions. The major departments include:

 Audit and Assurance Department: -

Firm provides audit and assurance services to wide range of clients which
include performing audits of financial statements of limited companies,
NGOs and partnerships. Firm also performs special assignments which
include management audits, internal audits and investigations. Audit
focuses on business issues and the matters that can impact on the financial
statements, whilst also retaining the basic audit procedures that test the
information contained in the financial statements. Services are aimed to
comply with the legal requirements as defined under the various laws and
regulations in Pakistan. In doing so firm not only identify the non-
compliances but also assists clients in its rectification, designing remedial
measures and provides guidance to adhere with the laws and regulations.
Firm always endeavor to meet reporting deadlines as set out by the laws
and regulations or as mutually agreed with clients, without compromising
the professional, legal and ethical requirements.

Firm’s emphasis is on delivering high quality services to clients, adding

value to their business through identification of existing and potential
control risks and suggesting best possible measures in the given
circumstances. Firm always places priority to deploying audit teams to

20
clients who are well equipped with the specific industry knowledge,
experience and are professionally sound.

 Tax and Corporate Department: -

Firm delivers taxation services to clients and assists them in obtaining

optimal tax benefits available under the laws. Firm also assist clients to
comply with the tax rules and regulations and always keep them updated
with the latest developments and amendments. Tax personnel are
qualified professionals, experienced and knowledgeable. We maintain a
comprehensive tax library which always provides ready references and
timely solution in complex situations. Firm provides a comprehensive
range of tax services which includes;

Preparation and submission of annual tax returns.

Compliance services.

Tax advisory services.

Representation and litigation with tax authorities.

Personal income tax services.

In Priyanka Shukla CA & Co. same staff is handling with tax matters as
well as corporate sector. While in corporate firm provides different kinds
of services relating to corporate sector from incorporation to winding up
of a Company.

21
 Computer Department: -

Department handles the computer related matters and assists other

departments in working properly and efficiently. Department deals with
online filing of returns of income for tax department and finalize audit
reports in proper format in a presentable manner. It deals with networking
of computers in office and all other problems which may be faced by
computer users time to time.

 Correspondence Department: -

It handles with all the correspondence of the firm by sending the solicited
and unsolicited information from time to time. Effectively and efficiently
manage the day-to-day operations of the Correspondence. Interact with
clients to resolve policy and customer issues. Identify trends and remove
obstacles in Statement production and delivery by properly maintaining
record of all communication for future reference.

 HR Department: -

This department is mainly concerned with the recruitment, hiring/firing of

the firm and this department presents the timely reports on effective
utilization of the resources by the firm. A purpose of the human resource
is to keep the trained employees and recruit new energetic staff to work.
Another purpose of this department is to provide a good working
environment for staff and try to make by facilitating them and arranging
some recreational activities for them. HR knows the real worth of its

22
 employees so cares for them and motivate them to work more efficiently
and diligently.

The hierarchy adopted by Priyanka Shukla CA & Co. is in accordance

with the legal structure a CA firm shall have. Although the ICAI rules
permit of not having the supervisors and does not make it mandatory
having senior manager and manager, yet this goes as additional benefit for
the firm of having such an extensive hierarchy.

CORPORATE SERVICES

 Incorporation of company

 Consultancy on Company Law matters.

 Advisory Planning for Mergers, Acquisitions, De-mergers, and Corporate

re-organizations.

 Filing of annual returns and various forms, documents.

 Clause 49 review for compliance with fiscal, corporate and tax laws

 Secretarial Matters including share transfers

 Maintenance of Statutory records

 Consultancy Services on Public/Rights/Bonus Issue of shares.

 Change of Name, Objects, Registered Office, etc.

23
 SERVICES OFFERING

 Company Registration: -

The most common business composition is to register a Pvt. Ltd.

Company. Company registration will enable limiting the person liability
of promoters to the extent of paid up capital. Promoters have to get DIN
& check availability of the company name.

 One Person Company: -

Register one-person company (u/s 2 (62) of Companies Act 2013) for

quick start of your business within reasonable fees by experienced CA
firms.

 LLP Registration: -

Limited Liability Partnership (LLP) has benefit of the company

registration & easiness of partnership. It is apt for small businesses.
Experienced CA firms can ease out the process within reasonable fees.

 GST Registration: -

GST registration of business is to enable selling of goods with turnover

value beyond a certain limit. Limit may differ from state to state. It is

24
 necessary to get GST Input Tax Credit. Experienced CA firms can ease
out the process within reasonable fees.

 Project Financing: -

Companies need funds to grow their business. Experienced CA can

prepare project report for loan financing to ensure that you get best
eligible amount in the shortest time. Generally, fees are charged as
percentage of financed amount.

 ROC Filing: -

Periodic returns/forms need to be submitted to Registrar of Companies

(ROC) for company’s act compliance. Experienced CA firms can file
timely & correct ROC filing in reasonable overall cost.

 GST Return: -

GST returns to be filed on periodic basis by business to provide

information about value of turnover & total GST liability & mode of
payment. Frequency may differ from state to state. Delays will attract
penalty. Experienced CA firms can ensure compliance with reasonable
fees.

 TDS Return: -

Income tax act requires TDS (Tax Deducted at Source) deduction file the
TDS return on periodic basis by mentioning TAN No.

25
 Income Tax (Salaried): -

Income tax return of salaried employee can be filed with help of Form 16
& Form 16A. Form 26 AS will help you in getting information about TDS
on salary. Experienced CA firm can help you for better tax planning and
reduce the TDS.

 Income Tax (Business): -

Income Tax returns filing is requirement of Income Tax Act for

companies/businesses. Tax Audit Report helps in compliance of income
tax laws. Experienced CA firms can help in reducing non- compliance of
income tax laws.

 Tally Accounting: -

Tally is most used accounting software. Small and medium sized business
can take services from CA firms who can allocate accountants to handle
accounting for your business.

 Statutory Audit: -

Get the statutory audit of your company under Companies Act from
experienced CA firms. Statutory Audit is compulsory for any type of
company.

26
 Tax Audit: -

Tax Audit is requirement of Income Tax Act for companies/large

businesses. Tax Audit Report helps in compliance of income tax laws &
highlights key tax related information. Experienced CA firms can help in
reducing non-compliance of income tax laws.

 Internal Audit: -

Internal Audit & Internal Financial Control Testing is needed as per

Companies Act. Internal Audit is not as compulsory as Statutory Audit.
Internal auditor can add value to your business to arrest leakage &
improve control and efficiency.

27
 AUDIT

Broadly, Audit involves the following:

 In-depth study of existing systems, procedures and controls for proper

understanding. Suggestions for improvement and strengthening.

 Ensuring compliance with policies, procedures and statutes.

 Comprehensive review to ensure that the accounts are prepared in

accordance with Generally Accepted Accounting Policies and applicable
Accounting Standards/IFRS.

 Checking the genuineness of the expenses booked in accounts.

 Reporting inefficiencies at any operational level.

 Detection and prevention of leakages of income and suggesting corrective

measures to prevent recurrence.

 Certification of the books of account being in agreement with the Balance

Sheet and Profit and Loss Account.

 Issue of Audit Reports under various laws.

Types of Audits conducted: -

 Statutory Audit of Companies.

 Tax Audit under Section 44AB of the Income Tax Act, 1961.

28
 Audit under other sections of the Income Tax Act, 1961 such as 80HHC,
80-IA, etc.

 Concurrent Audits.

 Revenue Audit of Banks.

 Branch Audits of Banks.

 Audit of PF Trusts, Charitable Trusts, Schools, etc.

 Audit of Co-operative Societies.

 Information System Audit.

 Internal Audits.

29
 CHAPTER 3
CONCEPTUAL DISCUSSION

OBJECTIVES OF STUDY
30
I choose to work with Priyanka Shukla CA & Co. During this internship I
have learnt many new skills. Before internship I have only theoretical
knowledge about work in organization but now I have practical some
practical experience of working in organization. Now I have
knowledge about the organization’s working environment and how
organizations work and achieve their goals and objectives.

This internship has to gives me the understanding of business and also

about the elements of strategic thinking, planning and
implementation, and how these things are applied in a real world
organization environment. Following are the objectives that I have in
my mind before working as an internee.

 To improve communication skills.

 To analyze the business situation.

 To establish high standard in professionalism.

 To learn more than the theoretical knowledge.

 To learn book keeping practices of different companies.

 To apply the theoretical knowledge in actual organization.

 To compare practical aspects with theoretical aspects.

 To make quick decision in real situations.

 To learn how to promote and to conduct research in business areas.

31
 To enhance my personal knowledge and professional preparation
for future.

 To properly integrate my theoretical knowledge and practical work.

 To plan for the future of oneself and learn how to adjust in an

organization.

 To know how to present your recommendations in front of your boss.

 To get knowledge of opportunities and threats while entering into an

organization.

 To get exposure to do a work in an organization and also known

about organizational behavior, ethical rules and regulations.

 Assist the student development of employer-valued skills such as

teamwork, strong communication and attention in details.

 Expose student to the environment & expectations of performance on

part of accountants in professional accounting practices.

 Enhance & expand the student’s knowledge of particular areas of

accounting.

 Expose the students to professional role models or mentors who will

provide the student with support in the early stages of the internship
& provide an example of behaviour expected in the internship
workplace.

 Expand networks of professionals’ relationship & contacts.

32
 Develop a solid work ethic & professional demeanour as well as
commitment to ethical conduct & social responsibility.

 Develop time management skills and the ability to be responsible for

more than one project at a time.

 Develop organizational skills to complete the project in a timely

manner.

33
 JOB DESCRIPTION

I have tried my best to enhance my abilities and apply the knowledge that I
gained during the studies. On my first day at firm, company in-
charge Mr. Priyanka Shukla Chandra gave me training session about
TDS returns and computerized accounting in tally software and also
shared his practical experience with me and gave me some
techniques of this process. He also guided me that how to prepare
VAT/GST return and filing data in income tax return preparation
software.

Different task that I performed during my internship:

 Vouching

 Preparing books of accounts in tally

 Voucher Entry

 Preparing Data in Excel Sheet

 Preparing Partnership Deed

 Intangible Assets

 Prepare Projected and other Balance Sheet

 Auditing

 Taxation

 Theoretical learning of different type of Taxation and GST

34
 Maintenance of accounts/ book keeping.

 TDS return preparation.

Software used during internship:

 MS office

 Tally software

35
 Overview of TDS

Tax deducted at source (TDS) is a tax that is deducted from income that a
company in India pays to a recipient or supplier if the income
amount exceeds a specific statutory limit in a financial year. The
types of income that are subject to TDS include:

 Salary

 Interest and dividends.

 Winnings from the lottery.

 Insurance commission.

 Rent.

 Fees from professional and technical services.

 Payments to contractors and subcontractors.

The withholding amounts for TDS can be deducted from an invoice

submitted by a supplier or from the payment that is issued to the
recipient or supplier. Examples of recipients and suppliers include
contractors, providers of professional services, employees, and real
estate landlords. Companies submit a TDS certificate to each
supplier on a monthly or yearly basis. The certificate includes the
payments, as well as information about the company and supplier.
Companies must also submit an annual return to the government for
each recipient or supplier for the financial year. TDS certificate can
be either Form 16 (R75I10A) or Form 26Q-P2P-IND (R75I122EQ).

36
 Form 16 is the TDS certificate which an individual submits and
Form 26Q is the TDS certificate which a company submits to the tax
authorities.

TDS must also be deducted from payments issued to third parties by

both corporate and no corporate entities. The entity must deposit the
amount owed for withholding at any of the designated branches of
banks that are authorized to collect taxes on behalf of the government
of India. The entity must also submit the TDS returns, which contain
details about the payments and the challan for the tax deposited to
the Income Tax Department (ITD).

 TDS RETURNS: -

TDS is a system whereby the income tax is deducted at the time of making
some payments like rent, interest, commission etc. The person
making such specified payments is responsible for deducting the
TDS and paying the balance amount to the person entitled to receive
such payment. The TDS amount deducted must be deposited to the
government within the due dates specified by the person deducting
TDS. While it is commonly assumed that the TDS is applicable only
on salary income, but it is also applicable in many other cases such
as:

 Income from interest on securities and debentures.

 Income from interest other than those on securities.

37
 Income from dividends.

 Income from withdrawal of EPF (Before expiry of a certain period or

if amount withdrawn is beyond the limit specified)

 Payment to contractors/subcontractors/freelancers.

 Winnings from horse races, lottery, crossword puzzles or any game

related wins.

 Income from rendering technical or professional services.

 Income from royalty, etc.

All income is taxable only at the end of the financial year, hence the
government has instituted the concept of TDS, in order to ensure:

 Prevention of tax evasion: This mechanism ensures that the

government collects a portion of the income itself, chances of hiding
income or tax defaults are minimized significantly.

 Timely collection of tax.

 Ease in filing tax returns: As the tax is automatically collected and

deposited with the concerned authorities by the deductor, it becomes
easier for individuals to file their returns. If there are no other sources
of income for a person, once TDS has been appropriately deducted,
they need not pay any additional tax during return filing.

38
  PROCESS FLOW OF TDS: -

This process flow shows the steps to charge and remit TDS: -

Create vouchers for suppliers with pay status % and applicable tax type

Calculate TDS on vouchers

Issue payments to suppliers with TDS amounts deducted

Submit monthly payment for TDS to tax authority

Update Challan

Generate monthly statements and submit quarterly and annual returns

Overview of VOUCHING

Vouching is a technical term which refers to the inspection of

39
 documentary evidence supporting and substantiating a transaction, by an
auditor. It is the practice followed in an audit, with the objective of
establishing the authenticity of the transactions recorded in the primary
books of account. It essentially consists of verifying a transaction
recorded in the books of account with the relevant documentary and the
authority on the basis of which the entry has been made; also confirming
that the authority on the basis of which the entry has been made; also
confirming that the amount mentioned in the voucher has been posted to
an appropriate account which would disclose the nature of the transaction
on its inclusion in the final statements in account. Vouching do not
include valuation. Vouching can be described as the essence or backbone
of auditing.

PREPARATION ON BOOKS ON TALLY

Following are the books that were made in tally:

 VOUCHER ENTRY: -

Tally provides flexibility to use predefined voucher types,

comprising of accounting and inventory voucher types to record
various business transactions. It also allows you to use Keyboard
Shortcut Keys as well as mouse operations during voucher entry.

To create a new Voucher Type,

Go to Gateway of Tally > Accounts Info. > Voucher Type > Create

40
  Enter the Voucher name

 Specify the Type of voucher

 Specify the Method of numbering

 Activate or deactivate the other functions as required.

 BOOKS AND REGISTERS: -

Tally provides you capability to generate various books and registers for
any specific period viz., month, date, and year and as on date. In Tally,
once voucher entry is made, the transactions are automatically &
immediately in the Day Book and other Books of Accounts without any
additional effort. Tally allows you to maintain and generate all primary
books of accounts and registers like:

 Cash Book
 Debit Note Register
 Bank Book
 Credit Note Register
 Purchase
 General Ledger
Register

 Sales Register

 Journal
Register

41
 PREPARATION OF PARTNERSHIP DEED

In this, we prepare the partnership deed of different persons, in which

different rules and regulations we mentioned according to the law. A
partnership deed also known as partnership agreement, is a document that
outlines in detail the rights and responsibilities of all parties to a business
operation. It has the force of law and is designed to guide the partners in the
conduct of the business. It is helpful in preventing disputes and
disagreements over the role of each partner in the business and the benefits
which are due to them. The partnership deed normally carries the name of
the business, the address of its principal place of business and a short
summary of the business the partners intend to operate.

Q. How to prepare a partnership deed in India?

When registering a partnership firm in India for startups, there are some
basics that need to be covered. Partnership and proprietorship are the two
most popular forms of business organisations in India. The reason why
these two forms of organisations are so popular is because they are
relatively easy to set-up and the number of statutory compliance
requirements needing to be followed by these forms of organisations is
relatively less than the statutory compliance requirements applicable to
LLP’s and companies. As such, this article focuses on the registration
process for the partnership firm.

 Choose a partnership name: - The partners are free to choose any

name as they desire for their partnership firm subject to the following rules:

42
1. The names must not be too identical or similar to the name of another
existing firm doing similar business, so as to avoid confusion. The reason
for this rule being that the reputation or goodwill of a firm may be injured,
if a new firm could adopt an allied name.

2. The name must not contain words like Crown, Emperor, Empress, Empire
or words expressing or implying the sanction, approval or patronage of the
Government, except when the State Government signifies its consent (in
writing) to the use of such words as part of the firm name.

 Create a Partnership Deed: - The document in which the respective

rights and obligations of the members of a partnership is written is called
the Partnership Deed. A partnership deed agreement may be written or oral.
However, practically an oral agreement does not have any value for tax
purposes and therefore the partnership agreement should be written. The
following are the essential characteristics of a partnership deed:

 Name and address of the firm as well as all the partners.

 Nature of business to be carried on.

 Date of commencement of business.

 Duration of partnership (whether for a fixed period/project).

 Capital contribution by each partner.

 Profit sharing ratio among the partners.

 The above are the minimum essentials which are required in all

43
 partnership deeds.

 Consider whether additional clauses are needed: - The partners

may also mention any additional clauses. Some of the examples of
additional clauses which may be mentioned in the partnership deed are
mentioned below:

 Interest on the partner’s capital, partners’ loan, and interest, if any, to be

charged on drawings.

 Salaries, commissions etc., if any, payable to partners.

 Method of preparing accounts and arrangement for audit.

 Division of task and responsibility, namely, the duties, powers and

obligations of all the partners.

 The rules to be followed in case of retirement, death and admission of a

partner.

 Do the partnership deed in the appropriate form: - The deed so

created by the partners should be on a stamp paper in accordance with the
Indian Stamp Act. Each partner should have a copy of the partnership deed.
A Copy of the Partnership Deed should also be filed with the Registrar of
Firms in case the firm is being registered.

 Decide whether or not to register the partnership firm: -

Partnerships in India are governed by the Indian Partnership Act, 1932.As
per the Partnership Act, registration of partnership firms is optional and is
entirely at the discretion of the partners. The Partners may or may not

44
 register their Partnership Agreement. However, in the case where the
partnership deed is not registered, the partners may not be able to enjoy the
benefits which a registered partnership firm enjoys.

 Registration of a partnership firm may be done before starting the business

or anytime during the continuance of partnership. However, where the firm
intends to file a case in the court to enforce rights arising from the contract,
the registration should be done before filing the case.

 Register: - The procedure for registration of a partnership firm in India is

fairly simple/an application and the prescribed fees are required to be
submitted to the Registrar of Firms of the State in which the firm is
situated. The following documents are also required to be submitted along
with the application:

1. Application for Registration of Partnership in Form No. 1.

2. Duly filled specimen of Affidavit.

3. Certified True Copy of the Partnership Deed.

4. Ownership proof of the principal place of business or rental/lease

agreement thereof.

 Sign the application: - The application or statement must be signed by

all the partners, or by their agents especially authorised in this behalf.

 Expect the registration process to proceed formally: - When the

registrar is satisfied with the points stated in the partnership deed, he or she
shall record an entry of the statement in a register called the Register of

45
 Firms and issue a Certificate of Registration. The Register of Firms
maintained at the office of the Registrar contains complete and up-to-date
information about each registered firm.

 This Register of Firms is open to inspection by any person on payment of

the prescribed fees; any person interested in viewing the details of any firm
can request the Registrar of Firms for the same and on payment of the
prescribed fees, a copy of all details of the firm registered with the
Registrar will be given to the applicant.

 Be registered for tax: - It should be noted that registration with the

Registrar of Firms is different from registration with the Income Taxation
Department. It is mandatory for all firms to apply for registration with the
Income Tax Department and have a PAN Card. After obtaining a PAN
Card, the partnership firm is required to open a Current Account in the
name of the partnership firm and to operate all its operations through this
bank account.

46
 Overview of VAT

Preparation of VAT returns

At the end of the month or each quarter, you file a VAT return with the
tax office, and remit the VAT due.

 Prerequisites

You have carried out the activities described in closing for VAT.

 Process

1. You prepare a copy of the sales ledger and the purchase ledger.

The ledgers show the invoices that have been paid and on which
VAT is thus due. The ledgers are for your own reference in the
event of a check-up by the tax office.

2. You prepare the VAT return. This consists of two steps.

1. You calculate the total amounts of VAT for each tax code.

2. You print the VAT return. The system fills out the fields in
the VAT return using the totals that you calculated in the
first step.

3. For information about preparing VAT returns for VAT

withheld from vendors.

4. You file the VAT return with the tax office and remit the taxes.

47
 Computer online software

Tax Solution for professionals is to provide end to end

management of every stage of the tax life cycle - from
provision to estimates and extensions, returns, audit,
amendment and planning.

 A Solution For

 Income Tax Return

 TDS return

 Service tax return

 Balance sheet & audit report

 VAT returns

 Checking of assessment orders

 ROC form and filling

 CMA

 AIR return

 Document Management

 Challan

 All other required forms

48
  Standard letters to clients

 Standard formats of departmental letters

 Office assistance works & mechanism.

 Various types of reporting.

 Features

 Single switch board for all software.

 Common client information for all software.

 Searching of records by Code No., Name PAN, etc.

 Online auto-update of software.

 Defining user rights with grouping facility.

 Password protection for individual clients.

 Activation/De-activation of
individual party from particular/all
software.

 Single window/screen to input, edit, view and print.

 Front-view buttons for easy understanding.

 User friendly similar layout of all software.

 LAN compatible.

49
  Various data input validation checks to eliminate errors.

 Easy auto backup of your precious data.

 Option to access from anywhere in the world.

Q.What is VAT?

Every commodity passes through different stages of production and

distribution before finally reaching the consumer. Some value is added at
each stage of the production and distribution chain: for instance, a forged
metal tool is more valuable than metal, which was itself more valuable
than the ore that was originally mined. Value Added Tax (VAT) is a tax on
this value addition at each stage.

Under a VAT system, a dealer collects tax on his sales, retains the tax paid
on his purchase and pays the balance to the government. It is a
consumption tax, because it is borne ultimately by the final consumer. The
tax paid by the dealer is passed on to the buyer. It is not a charge on the
dealer. VAT is instead a multipoint tax system with provision for
collection of tax paid on purchases at each point of sale.

Q.What is Output Tax?

Output tax is VAT charged to the customer by a dealer making taxable

sales. A dealer is an individual, partnership, or business that is registered
under VAT. Any person or business making sales above the prescribed
limit are required to register. When a dealer is registered, VAT becomes
chargeable on all taxable sales made by that dealer.

50
Q.What is Input Tax?

The tax a dealer pays for purchases is input tax. Many purchases will carry
a VAT charge, but when a dealer is registered under VAT, they can
normally claim a credit for VAT charges on most business purchases.
Input tax includes not only the VAT on your purchases of raw materials or
on goods purchased for resale but also VAT on capital goods, such as
machinery or equipment.

VAT Computation

A dealer pays VAT by deducting the tax paid on purchases (input tax)
from his tax collected on sales (output tax).

In other words, VAT = Output Tax – Input Tax.

For example: A dealer pays Rs.10.00 @ 10% on his purchase price of

goods valued Rs.100.00. He sells the goods at Rs.150.00 and collects tax
amounting to Rs.15.00 (@ 10%). He will pay Rs.5.00 (Rs.15.00-
Rs.10.00) as he has already paid Rs.10.00 to his seller while purchasing
those goods.

Q.How is VAT different from Sale Tax?

VAT has fewer rates, as opposed to the high number of rates for Sales Tax,

51
 and allows offsets of tax on inputs against those on outputs. VAT also
does away with the tax on tax.

Q.Who will be covered by VAT?

All business transactions involving the sales of goods/commodities carried

on within a state by individuals, partnerships, or companies will be
covered by VAT.

VAT will not cover small businesses with sales below a certain limit. In
Maharashtra, the limit is 10 lakhs or below.

Q.What are the tax rates under VAT?

Since every state has its own VAT legislation, VAT rates, taxable base and
list of taxable goods, VAT rates will differ from state to state. As an
example, here are Maharashtra’s tax rates as of June 2016:

 Schedule ‘A’ – Essential Commodities (Tax-free) – Nil

 Schedule ‘B’ – Gold, Silver, Precious Stones, Pearls etc. – 1%

 Schedule ‘C’ – Declared Goods and other specified goods – 5% (Rates for
items other than declared goods changed to 5.5%)

 Schedule ‘D’ – Foreign Liquor, Country Liquor, Motor Spirits, etc. – 20%
and above

 Schedule ‘E’ – All other goods (not covered by A to D) – 12.5% starting

April 1, 2016.

52
 Q. How does VAT help trade, consumers, and government?

 Trade

Uniform rates of VAT will boost trade; 100% self-assessment will reduce
the need for taxpayers to visit a tax department officer.

 Customers

Removing tax on tax reduces prices of goods that the end consumer pays.

 Government

Since dealers will conduct self-assessment, the resources required for this
process will be fewer, and the revenue department can focus more on
collection than administrative processes.

Overview of Tally ERP 9

 Journal Entry

53
 Journal Vouchers are used to adjust the debit and credit amounts
without involving the cash or bank accounts. Hence, they are referred
to as adjustment entries.

 Creating a Journal Entry: -

Journal entries are usually used for finalization of accounts. To pass a

Journal Voucher,
Go to Gateway of Tally > Accounting Vouchers
· Click on F7: Journal on the Button Bar or press F7.
For example, there may be entries made for interest accrued or interest
due. If you have to receive Interest from a party, the same can be
entered using Journal Voucher.
1. Debit the Party
2. Credit the Interest Receivable Account the Journal entry is
displayed as shown:

SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

 ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.

54
  CTRL+R: Recalls the Last narration saved for a specific voucher type,
irrespective of the ledger.

Allowing Cash Accounts in Journals:

Journals are adjustment entries, which do not involve Cash account and
Bank account. However, in exceptional cases where the user would like to
account Journal entries involving Cash/Bank Account, Tally.ERP 9 has the
flexibility of passing such entries by enabling the option under F12
configuration.
To enable Cash Accounts in Journal voucher,
Set Allow Cash Accounts in Journals to Yes in F12: Configure (Voucher
Entry Configuration).

To pass a Journal voucher with Cash/Bank Ledger,

1. Go to Gateway of Tally > Accounting Vouchers > Select F7: Journal

2. Press the spacebar at the Debit or Credit field.

55
 The Journal Voucher Screen with Cash/Bank Ledger selection will appear
as shown:

 Debit Note Entry

Debit Note is a document issued to a party stating that you are debiting
their Account in your Books of Accounts for the stated reason or vice
versa. It is commonly used in case of Purchase Returns, Escalation/De-
escalation in price, any other expenses incurred by you on behalf of the
party etc.

Debit Note can be entered in voucher or Invoice mode.

56
 You need to enable the feature in F11: Accounting or Inventory features.

· To use it in Voucher mode you need to enable the feature in F11:

Accounting Features - Use Debit / Credit Notes.

· To make the entry in Invoice mode enable the option F11: Accounting
Features - Use invoice mode for Debit Notes.

To go to Debit Note Entry Screen,

Go to Gateway of Tally > Accounting Vouchers

· Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9. You can
toggle between voucher and Invoice mode by clicking Ctrl+V. Pass an
entry for the goods purchased returned to Supplier A:

57
 SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

1. ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.

2. CTRL+R: Recalls the Last narration saved for a specific voucher type,
irrespective of the ledger.

 Credit Note Entry

Credit Note is a document issued to a party stating that you are crediting
their Account in your Books of Accounts for the stated reason or vice
versa. It is commonly used in case of Sales Returns.

A Credit Note can be entered in voucher or Invoice mode.

You need to enable the feature in F11: Accounting or Inventory features.

 To use it in Voucher mode you need to enable the feature in

F11: Accounting Features - Use Debit / Credit Notes.

 To make the entry in Invoice mode enable the option

F11: Accounting Features - Use invoice mode for Debit Notes.

To go to Credit Note Entry Screen:

Go to Gateway of Tally > Accounting Vouchers

1. Click on Ctrl+F8: Credit Note on the Button Bar or press

58
 Ctrl+F8. You can toggle between voucher and Invoice mode by clicking
Ctrl+V. Pass an entry for goods sold returned from Customer A:

SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

 1. ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.
·
 2. CTRL+R: Recalls the Last n a r r a t i o n saved for a specific voucher
type, irrespective of the ledger.
·

59
 AS-26 INTANGIBLE ASSETS

Intangible asset is a non-physical non-monetary asset which is held for use

in the production or supply of goods and services, or for rental for others,
etc.

As 26 should be applied by all enterprises in accounting of intangible

assets, except:

 Intangible assets that are within the scope of another standard financial
assets.

 Rights and expenditure on the exploration for or development of minerals,

oil natural gas and similar non-generative resources.

 Intangible assets arising in insurance enterprise from contracts with

policyholders.

Recognition and Initial Measurement of an Intangible Assets

It applies when an item meets the criteria of an Intangible asset and it is

probable that the future economic benefits will flow to the enterprise and
the cost of the asset can be measured reliably. These recognition criteria
are applicable to cost of acquiring and generating an intangible asset
internally.

Note: If an intangible asset is acquired separately, that should be measured

initially at cost, which includes purchase price that includes import duty,
non-refundable purchase taxes, after deducting trade discount and related

60
direct cost.

If an asset is acquired in a business combination, the cost of that asset

should be its fair value at the acquisition date which depends on market
expectations. When the asset is acquired free of charge or for a normal
consideration, by way of government grant, then it is recognized at a
nominal value or at the acquisition cost.

61
 OVERVIEW ON AUDITING

An auditor is someone who prepares and examines financial records. They

ensure that financial records are accurate and that taxes are paid properly
and on time. They assess financial operations and work to help ensure that
an organization runs efficiently.

In this area, we were done different type of work such as matches the
balances of transactions from software information with our tally voucher
entries information. We check different financial records of companies any
analyze that and identify the mistakes then give some suggestions to them.

An audit is a systematic and independent examination of books, accounts,

statutory records, documents and vouchers of an organization to ascertain
how far the financial statements as well as non-financial disclosures
present a true and fair view of the concern. It also attempts to ensure that
the books of accounts are properly maintained by the concern as required
by law. Auditing has become such a ubiquitous phenomenon in the
corporate and the public sector that academics started identifying an Audit
Society. The auditor perceives and recognizes the prepositions before them
for examination, obtains evidence, evaluates the same and formulates an
opinion on the basis of his judgement which is communicated through
their audit report.

Any subject matter may be audited. Auditing is a safeguard measure since

ancient times. Audits provide third party assurance to various stakeholders
that the subject matter is free from material that the subject matter is free
from material misstatement. The term is most frequently applied to a legal
person. Other areas which are commonly audited include: secretarial and
62
 compliance audit, internal controls, quality management, project
management, water management and energy conversion.\

 Auditing Standards

The Public Company Accounting Oversight Board (PCAOB) maintains

external auditing standards for public companies (issuers) registered with
the Securities and Exchange Commission (SEC).

As of 2012, PCAOB has 15 permanent standards approved by the SEC and

a number of interim standards that reflect generally accepted auditing
standards, as described in standards issued by the Auditing Standards
Board (ASB), which is part of the American Institute of CPAs (AICPA).

The ASB also issues Statements on Auditing Standards (SASs) that apply
to preparing and releasing audit reports for non-issuers (companies not
required to register with the SEC). AICPA members who audit a non-
issuer are required by the AICPA Code of Professional Conduct to comply
with these standards. As of 2012, there are more than 60 active standards.

For internal auditing, the Institute of Internal Auditors provides a

conceptual framework called the International Professional Practices
Framework (IPPF) that provides guidance for internal audits. Some of the
guidance is mandatory, while others are considered strongly
recommended, but not required by law.

There are four main steps in the auditing process. The first one is to define
the auditor’s role and the terms of engagement which is usually in the
form of a letter which is duly signed by the client.

63
 The second step is to plan the audit which would include details of
deadlines and the departments the auditor would cover.

The next important step is compiling the information from the audit. When
an auditor audits the accounts or inspects key financial statements of a
company, the findings are usually put out in a report or compiled in a
systematic manner.

The last and most important element of an audit is reporting the result. The
results are documented in the auditor’s report.

 Audit Planning

Audit planning includes deciding on the overall audit strategy and

developing an audit plan.

Auditing Standard No. 9 from the PCAOB describes an external auditor's

responsibility and the requirements for planning an audit. According to
standard No. 9, an audit plan is expected to describe the planned nature,
extent, and timing of the procedures for risk assessment and the tests to be
done on the controls and substantive procedures, along with a description
of other audit procedures planned to ensure the audit meets PCAOB
standards.

For internal auditing, the Institute of Internal Auditors provides guidance

for audit planning. Planning starts with determining the scope and
objectives of the audit.

64
Internal auditors need to understand the business, operations, and unique
characteristics of the department/unit being audited and to develop an audit
plan that defines the procedures needed to do an efficient and effective
audit.

OVERVIEW ON GST
65
 What is GST?

GST is an Indirect Tax which has replaced many Indirect Taxes in India.
The Goods and Service Tax Act was passed in the Parliament on 29th
March 2017. The Act came into effect on 1st July 2017; Goods & Services
Tax Law in India is a comprehensive, multi-stage, destination- based tax
that is levied on every value addition.

In simple words, Goods and Service Tax (GST) is an indirect tax levied on
the supply of goods and services. This law has replaced many indirect tax
laws that previously existed in India.

GST is one indirect tax for the entire country.

So, before Goods and Service Tax, the pattern of tax levy was as follows:

Under the GST regime, the tax is levied at every point of sale. In the case
of intra-state sales, Central GST and State GST are charged. Inter- state
sales are chargeable to Integrated GST.

Now let us try to understand the definition of Goods and Service Tax –
“GST is a comprehensive, multi-stage, destination-based tax that is
levied on every value addition.”

Multi-stage

There are multiple change-of-hands an item goes through along its supply
chain: from manufacture to final sale to the consumer.

Let us consider the following case:

66
 Purchase of raw materials

 Production or manufacture

 Warehousing of finished goods

 Sale to wholesaler

 Sale of the product to the retailer

 Sale to the end consumer

Value Addition

The manufacturer who makes biscuits buys flour, sugar and other material.
The value of the inputs increases when the sugar and flour are mixed and
baked into biscuits.

The manufacturer then sells the biscuits to the warehousing agent who
packs large quantities of biscuits and labels it. That is another addition of
value after which the warehouse sells it to the retailer.

The retailer packages the biscuits in smaller quantities and invests in the
marketing of the biscuits thus increasing its value.

GST is levied on these value additions i.e. the monetary value added at
67
 each stage to achieve the final sale to the end customer.

Destination Based

Consider goods manufactured in Maharashtra and are sold to the final

consumer in Karnataka. Since Goods & Service Tax is levied at the point
of consumption. So, the entire tax revenue will go to Karnataka and not
Maharashtra.

 Advantages of GST

GST has mainly removed the Cascading effect on the sale of goods and
services. Removal of cascading effect has impacted the cost of goods.
Since the GST regime eliminates the tax on tax, the cost of goods
decreases. GST is also mainly technologically driven. All activities like
registration, return filing, application for refund and response to notice
needs to be done online on the GST Portal; this accelerates the processes.

 Components of GST

68
 There are 3 taxes applicable under this system: CGST, SGST & IGST.

 CGST: Collected by the Central Government on an intra-state sale

(Eg: transaction happening within Maharashtra)

 SGST: Collected by the State Government on an intra-state sale (Eg:

transaction happening within Maharashtra)

 IGST: Collected by the Central Government for inter-state sale (Eg:

Maharashtra to Tamil Nadu)

69
 OVERVIEW ON Taxation

A tax is a mandatory financial charge or some other type of levy imposed

upon a taxpayer by a governmental organizational in order to fund various
public expenditures. A failure to pay, along with evasion of or resistance to
taxation, is punishable by law.

In this we learned about the Direct & Indirect taxes. We filled most of the
income tax returns of different clients.

In this we learned about different heads of income, calculation of taxes &

different deduction with sections. As well in Indirect taxes we file returns
of GST in which different forms are involved for Regular scheme &
Composition scheme. For regular scheme we filled GSTR-1 & GSTR-3B
(online) and for composition scheme we filled GSTR-4 (offline)

 Purposes & Effects

The levying of taxes aims to raise revenue to fund governing and to alter
prices in order to affect demand. States and their functional equivalents
throughout history have used money provided by taxation to carry out
many functions. Some of these include expenditures on economic
infrastructure, military, scientific research, culture and the arts, public
works, distribution, data collection and dissemination, public insurance,
and the operation of government itself. A government’s ability to raise
taxes is called its fiscal capacity.

70
 Types of Taxes

Taxes are of two distinct types, Direct and Indirect taxes. The difference
comes in the way these taxes are implemented. Some are paid directly by
you, such as the dreaded income tax, wealth tax, corporate tax etc. while
others are indirect taxes, such as GST.

71
 CHAPTER 4
WORK & RESEARCH

72
 Description of process followed to accomplished the
assigned task in the organization

 Tally Entries

Following process are followed for accomplishment this task:

 Firstly, we review all records of vouchers carefully, that no any vouchers

had any queries related to adjustments.

 Then, we make a separate folder for that work.

 Then, we create a company in Tally software by that company name and

started doing entries.

 Receipts & Payment entries are posted carefully as it carries some contra
entries also.

 Then after completing entries posting recheck the data by Balance sheet,
Trial balances & Day book.

 Any queries related to this work communicated to our external mentor.

 Auditing

These steps were followed by us in auditing:

 Build an audit strategy.

 Verify that all outgoing checks were properly signed, accounted for and
posted to the correct accounts.

73
 Ensure that all deposits were properly posted.

 Review all financial statements.

 Ensure compliance with all state and federal requirements.

 Review all treasurers’ reports.

 Complete the financial review worksheet.

 Suggest improvements to internal controls.

 Determine your audit opinion.

 Submit all documents to companies.

 Taxation

Following steps are followed by us –

 All of the first, we study about the taxation and mainly headed Income
Tax.

 Then, we started to prepare ITR’S statement in excel sheet according to

the format given to us.

 After that, we prepare the offline utilities of ITR’S according to the

income status in statement.

 Then, we login to the income tax site and upload that utility online, if user
not registered then first we registered them.

74
 TAXATION

What is TAX?

A tax is a mandatory financial charge or some other type of levy imposed

upon a taxpayer (an individual or other legal entity) by a governmental
organization in order to fund various public expenditures. A failure to pay,
along with evasion of or resistance to taxation, is punishable by law. Taxes
consist of Direct and Indirect taxes and may be paid in money or as its
labor equivalent.

 Purposes and Effects -

The levying of taxes aims to raise revenue to fund governing and to alter
prices in order to affect demand. States and their functional equivalents
throughout history have used money provided by taxation to carry out
many functions. Some of these include expenditures on economic
infrastructure, military, scientific research, culture and the arts, public
works, distribution, data collection and dissemination, public insurance,
and the operation of government itself. A government’s ability to raise
taxes is called its fiscal capacity.

 Types of Taxes –

Taxes are of two distinct types, Direct and Indirect taxes. The difference
comes in the way these taxes are implemented. Some are paid directly by
you, such as the dreaded income tax, wealth tax, corporate tax etc. while
others are indirect taxes, such as GST.

75
a. Direct Taxes

b. Indirect Taxes

Direct Tax

An Income tax is a tax that government impose on financial income

generated by all entities within their jurisdiction. By law, businesses and
individual must file an income tax return every year to determine whether
they owe any taxes or are eligible for a tax refund.

 Financial year – A year as reckoned for taxing or accounting purposes.

 Assessment year – Assessment year is the year immediately following the

financial year wherein the income of the financial year is assessed.

There are some examples of Direct Taxes like:

1. Income Tax

2. Corporate Tax

3. Wealth Tax

4. Gift Tax

5. Estate Duty

6. Expenditure Tax

7. Fringe Benefit Tax

 Income Tax is a tax imposed on individuals or entities that varies with

respective income or profits. Income tax generally is computed as the
76
 product of a tax rate time’s taxable income. There are 5 different heads of
income sources for tax:

1. Salary

2. House Property

3. Profit & Gains from Business & Profession

4. Capital Gains

5. Other Sources

We calculate tax on financial year income in assessment year in which year

we are calculating the income tax. These are filing ITR necessarily:

1. Individual/Proprietors

2. Firms

3. Trust/NGO’s/Societies/Association of Persons/Body of Individuals.

4. Companies

5. Local authorities/Municipality

There are different tax rate slabs for different age groups, different work &
different status:

 Income Tax slabs for Individual Tax Payer & HUF (less
than 60 years old) for F.Y. 2019-20

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 Income Tax Slabs for Senior Citizens (60 years old or
more but less than 80 years old) for F.Y. 2019-20

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 Income Tax Slabs for Senior Citizens (80 years old or
more) for F.Y. 2019-20

 Income Tax Slabs for Domestic Companies for F.Y.

2019-20

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 Due Dates of Filing Return

(This is income tax return for the financial year 2018-19. Applicable for
income earned from April 1st, 2018 to March 31st, 2019).

Important Due Dates of Income tax return filing for the year 2019.

Whenever we talk about income tax, there are various kind of compulsory
tax formalities that need to be followed by a person and that too within the
specified due dates prescribed, such as filing of income tax returns, paying
advance tax on time.

Here is the TAX CALENDAR for 2019.

Indirect Tax
An indirect tax is a tax collected by an intermediary from the person who
bears the ultimate economic burden of the tax. The intermediary later files
a tax return and forwards the tax proceeds to government with the return.
GST is the most prominent example of Indirect tax levied in India on the
supply of goods & services. GST is levied at every step in the production
process, but is refunded to all parties in the chain of production other than
the final consumers. Goods & Services are divided into five tax slabs for
collection of tax – 0%, 5%, 12%, 18% and 28%.

Petroleum products, alcoholic drinks, electricity, and real estate are taxed
separately by the individual state governments. India adopted a dual GST
model, meaning that taxation is administered by both the Union & State
governments. Transactions made within a single state are levied with

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Central GST (CGST) by the Central government and State GST (SGST)
by the State governments. For inter-state ransactions and imported goods
& services, an integrated GST (IGST) is levied by the Central
government.

The GSTN software is developed by Infosys Technologies and IT network

is maintained by the NIC. “Goods & Services Tax” Network (GSTN) is a
non-profit organization formed for creating sophisticated network,
accessible to stakeholders, government and taxpayers to access
information from on a single source (portal).

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 CHAPTER 5
LEARNING, CONCLUSION AND
SUGGESTIONS

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 Behavioral Learning from the Organization

 COMMUNICATION

Good communication consists of many other different sub-skills, from

suitable patterns of body language and eye contact with the ability to write
clear and accurate reports. Accurate listening and the ability to follow
instructions are especially important but are often ignored or taken for
granted. Many people simply do not pay close attention to what others say
or write and do not ask follow-up questions to check their understanding.
As a result, individuals act on their own inaccurate assumptions and create
inefficiencies and frustrations at work. Communication training will help
them overcome these challenges.

 GOAL SETTING AND PLANNING

Anybody can wish for something to happen, but to accomplish anything

one must plan which surprisingly few people know how to do. Planning
requires setting concrete goals, identifying workable action steps, and
making a commitment to see the plan through.

Even setting the primary goal can be difficult when multiple issues are
competing for attention. Effective planning requires arranging problems by
importance and delegation. It is impossible to do everything at once, but if
one focuses on the most important tasks and ask for help, then can
accomplish a lot.

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 SELF-IMPROVEMENT

Life in the workplace should not enforce stagnation; there should be a

constant need or desire for improvement. Satisfaction leads to a perception
of repetition, which is the essential of a job perceived as unchallenging.
Employees should improve to avoid both the frustration of inexperience
and contentment with their work.

People always have room to grow, and advance behavioral skills are
always welcomed. At the upper end, one can give your workers the tools
and mindset to aim for improvement by observing their behavior, work
habits, and production. Self-improvement training will help provide
feedback and criticisms that they can use to benefit their next assignments.
An essential part of promoting improvement is to communicate to the
employees that failure.

 EMPATHY

Being an empathetic individual comes naturally to some, but is less natural

to others. Behaving with empathy means more than feeling bad for
someone who’s sad or sharing in someone else’s joy. It means being able
to step into someone else’s world to understand not just what their point of
view is, but also why they have that point of view.

Empathy is a behavioral skill that can help one not only keep their own
peace of mind but can also help one to grow in your career because
empathetic people tend to put others at ease.

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 CONFLICT RESOLUTION

At points of imbalance and friction, the employees must be able to

confront the tension between them and resolve whatever disagreement
arises. This is a twig of communication, though it is a distinct skill that can
be hard to develop due to hesitation and the intimate nature of the
workplace.

The bad habit to breed is ignoring these conflicts to the point that they
grow and spread like wild-fire, damaging relationships and the
productivity of both individuals and the team. Instead, employers should
remain aware of potential conflicts and be active in entering and
facilitating these more emotional interactions, and over time, help their
workers see the bigger picture when they harbor uncertainties.

5 BEST PRACTICES OBSERVED IN THE

ORGANIZATION

 There is no racism on the basis of any caste, creed, color or gender.

Everyone is treated same thus making it easy to co-ordinate with each
other and to share views and ideas with each other. The mentors as well as
the colleagues are always ready to sort out any problem that the interns
could not resolve on their own.

 Everyone is disciplined and dedicated towards their job, thus provides

motivation to do our jobs perfectly and to learn and grab as much as we
can. The perfect competitive environment always motivates us to excel in
our job responsibility and to perform better than we are performing.

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 The working environment is lenient in the organization. Neither the
employees are overburdened by the work given. Neither they nor the
proprietor force them to work for extra time. All the work/targets are
completed by the employees in the provided time frame.

 The employees are always energetic and ready to do work; they don’t
waste their time. They always strive for excellence with effectiveness and
efficiency in their work. Even if the proprietor is not at the office they
don’t skip work hours.

 The proprietor is really good at customer handling, he is always too

humble towards the clients even though if the clients are in bad mood or
tempered, he never loses his temper and handles them greet fully. he never
abuses his employees even if they make silly mistakes, and corrects their
mistakes by smiling and sarcastically commenting on it so the employees
don’t feel down and eventually improve themselves.

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 SUGGESTIONS AND RECOMMENDATIONS

Though the organization is really good at everything and everything is

well maintained and managed. But still there are some chances of
improvement whether it is a human being or any organization till there are
improvements and chances to develop and grow, the organization must
improve itself at its best. In my opinion some of the
suggestion/recommendations are:

 They have good opportunity to introduce the ISO standards training

program which no other firm is giving to customer.

 Try to adopt new technologies that their competitors are not using.

 Make a network that allows its customers to negotiate with them easily.

 In comparison with their competitors, PRIYANKA SHUKLA CA & CO.

has an edge in making an accurate and error free report.

 The local economy continues to be strong and we believe our typical

clients will continue to flourish.

 The company has mostly professional educated human resources, which

are the biggest threat for their competitors.

 Priyanka Shukla CA & Co. strongly needs to improve its network firms so
as to be counted among one of the extensively know firms in UK. The
partner needs to make the best use of their goodwill to bring more
clientage and reputation to firm. They need to offer the audit services at
most economical cost with the assured quality services to retain and

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 expand clients.

 The infrastructure and working condition reviews can improve the

working efficiency of the trainees. Audit and Assurance is the tough job.
Some motivational meetings and mentoring exercises would bring good
feel among employees for their work. Time to time financial bonuses or
performance incentives will energize the staff.

 The trainees are not offered extra financial or any other incentive for the
extra work or over time. This causes some sort of abstractions which
immediately need to be overcome by the management.

 The firm, to be more competitive in future, still has room for improvement
in Information Technology. As firm don’t have any of its website to attract
customer and their timely feedback as most of the good firms have their
own web and well organized.

 Firm also lacks in marketing perspective as it does not any marketer to

market and introduce their business, firm is getting business only on
personal relations of the partners and other firm personnel. So if firm
wants to improve its business volume it needs a professional marketer as
many other big firms adopted and have complete marketing department.

 The employees are provided less salary than the government has asked to
provide in minimum wage act, therefore the employees must be provided
at least the minimum salary.

 It is 6 days working in the organization; most of the organizations are

using 5 days working schedules so that employees don’t feel exhausted
and their efficiency increases. So the organization must provide at least

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 one-day leave to the employees to rest and freshen up.

 Most of the computers and laptops in which the work was done were old
and because of that we were unable to carry out our tasks properly. The
organization must have proper systems so that the work load can be
handled efficiently.

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 LIMITATIONS

 They have a small staff with limited skill set in many areas.

 Less number of staff members.

 Developments in technology are changing this market. Priyanka

Shukla CA & Co. needs to adopt new technology and adapt to the
changed market realities.

 Change in government policies and procedures may act as threat for

company.

 A small change in focus of large competitor might wipe out any

market position achieved.

 Priyanka Shukla CA & Co. has many competitors. Under certain

circumstances stiff competition can threaten the margins and hence
the survival of the firm.

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 CONCLUSION

 Priyanka Shukla CA & Co. is overall one of the profit making and
reputed firm of Earth. The organization since its very first day is
devoted to providing quality services. The detailed and through review
of work and clients’ trust shows the perfection with which it is
working.

 The firm has earned a distinction of being placed in the category 'A' in
the list of panel of auditors maintained by State Bank of India.
Moreover, only these “A” category firms can audit of listed companies.

 The Institute of Chartered Accountants of India has also carried out the
Quality Control Review and has issued satisfactory QCR report stating
that the firm has conducted the audits of the clients in accordance with
International Standards on Auditing.

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CHAPTER 6
BIBLIOGRAPHY

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 REFERENCES

 https://cleartax.in/s/income-tax-slabs

 https://economictimes.indiatimes.com

 https://www.avalara.com

 https://www.business-standard.com

 https://www.google.co.in/imghp?hl=en&tab=wi&ogbl

 http://www.gstcouncil.gov.in/

 https://www.myloancare.in/tax/income-tax-slabs-rates/

 https://www.wikipedia.org/

 www.google.com

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