Internship Report

On
“Accounting and Taxation”
A Report submitted in partial fulfillment of the requirement for the
award of degree of
BACHELOR OF COMMERCE
Submitted by : Xyz

[Link] V Semester

Batch : (2023-2024)

Roll No. : 1234567890

Internship under the guidance of

Mr. Md. Aqib (Chartered Accountant)

Duration : 9 October 2023 to 5 November 2023

Intern at : MOHAMMAD AQIB & ASSOCIATES

UNIVERSITY OF LUCKNOW, MOHAMMAD AQIB &

LUCKNOW ASSOCIATES
 DECLARATION

I, “Xyz”, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere. Any
literature, data or work done by others and cited in the report has been given
due acknowledgement and listed in the reference section.

Xyz

Roll No. : 1234567890

 ACKNOWLEDGEMENT

This project was a golden opportunity for learning and self-development. I consider
myself very lucky and honored to have so many wonderful people that lead me
through in completion of this project.

I extend my gratitude to MOHAMMAD AQIB & ASSOCIATES for giving me this

opportunity. I am very grateful to Mr. Md. Aqib who was my guide during the
development of this project and it was her guidance and assistance which helped me
in completing my project and I am thankful for her support and friendly guidance.

I would like to thank all my colleagues with whom I worked together during the
internship programme. Also, I would like to thank the God Almighty. His blessings
help me everywhere in my life.

Xyz
 EXECUTIVE SUMMARY

This report is all about my internship in MOHAMMAD AQIB & ASSOCIATES.

The main aim of doing internship under the CA firm is to interact with the
professional bodies and gain some practical knowledge about the different
organizations. My objective of this report is to share my experience during
internship period. This report provides an analysis on the working of the employees
and CAs in the firm. This report is the outcome of the [Link] Internship program
and summary of my work which I have done in MOHAMMAD AQIB &
ASSOCIATES. It was a great experience for me to work here. My theoretical and
practical knowledge related to taxation is helping me a lot.

Through this project report, I have studied about Accounting and taxation services
of MOHAMMAD AQIB & ASSOCIATES. This report has been made to see how
the accounting and taxation services management is done in MOHAMMAD AQIB
& ASSOCIATES.
 TABLE OF CONTENT

 Cover Page i
 Certificate of internship ii
 Declaration iii
 Acknowledgement iv
 Executive Summary v

CHAPTE CONTENT PAGE NO.

R
1. Introduction 1
 Introduction of Organization Business Sector
a. About the industry 2
b. Mission and Vision 3
c. About CA 4
d. About Accounting 6
 Organizational Structure
a. Organizational Structure 12
b. Top 11 CA Firms in India 14
2. Company Profile 24
 About the Company 25
 Departments of Company
26
 Services Offering
29
 SWOT Analysis 33
 Audit 34
 Industry growth 36
3. Conceptual Discussion 37
 Objective of the study 38
 Job description 40
 Overview of TDS 41
 Overview of Tally 48
4. Work and Research 56
 Description of accomplished work in 57
organization
79
 Research Methodology
5. Learning, Conclusion and Suggestion 81
 Behavioral learning from organization 82
 Problems and it’s solutions 84
 Suggestions 85
 Limitations 88
 Conclusions 89
6. Bibliography 90
 References 91
 CHAPTER 1
INTRODUCTION

1
 INTRODUCTION OF THE ORGANIZATION’S
BUSINESS SECTORS

About the industry

Organization is working as Chartered Accountant Firm under the rules

and regulations and code of ethics designed for ICAI (Institute of
Chartered Accountants of India).

The Institute of Chartered Accountants of India (ICAI) is a statutory

body established by an Act of Parliament, viz. The Chartered
Accountants Act, 1949 for regulating the profession of Chartered
Accountancy in the country.

ICAI is governed by 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 types of professional services like

audit, taxation and management consultancy to its clients.

The Chartered Accountant course is conducted by the institute of

chartered accountant of India, which has its headquarter in New Delhi.

2
 MISSION AND VISION

Mission of ICAI

Is to achieve excellence in professional competence, add value to

business 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.

3
 About Chartered Accountant
A chartered accountant (CA) is a financial professional who is qualified
to execute certain accounting procedures. It also refers to
an accounting designation granted internationally to individuals aside
from the United States. CAs work in four main areas, including applied
finance, financial accounting and reporting, management accounting,
and taxation. Their responsibilities may include filing taxes and auditing
financial statements. This designation is the same as the certified public
accountant (CPA) designation in the United States.

Duties & Responsibilities of a CA:

As noted above, a chartered accountant is a financial professional who

works in the field of accounting. The designation held by CAs is the
international equivalent of a CPA in the United States. CAs earn their
designation based on the rules and regulations of the country in which
they work.

Chartered accountants work both in the private and public sectors for
organizations, businesses, governments, and individuals to help them
meet their financial needs. They generally focus on one of four areas:

 Applied finance

 Financial accounting and reporting

 Management accounting

4
  Taxation1

Depending on their area of focus, CAs may handle one aspect of a

company's business, such as auditing financial statements. Others may
oversee all of a company's accounting needs or they may work as
freelancers who handle accounting matters for multiple clients. The CA
designation proves CAs are qualified to file a business's tax return,
audit financial statements and business practices, and offer advisory
services to clients.

How do I become a CA?

The requirements to become a chartered accountant depend on the

country where you live. But in most cases, you must have at least an
undergraduate degree in a related field, such as accounting or finance,
and you must complete special coursework to get your designation or
certification. Work experience also helps, so if you have the opportunity
to do an internship, don't pass up the chance.

5
 About Accounting

Accounting is the process of recording financial transactions pertaining

to a business. The accounting process includes summarizing, analyzing,
and reporting these transactions to oversight agencies, regulators, and
tax collection entities. The financial statements used in accounting are a
concise summary of financial transactions over an accounting period,
summarizing a company's operations, financial position, and cash flows.

What is the purpose of Accounting?

Accounting is one of the key functions of almost any business. It may be

handled by a bookkeeper or an accountant at a small firm, or by sizable
finance departments with dozens of employees at larger companies. The
reports generated by various streams of accounting, such as cost
accounting and managerial accounting, are invaluable in helping
management make informed business decisions.

The financial statements that summarize a large company's operations,

financial position, and cash flows over a particular period are concise
and consolidated reports based on thousands of individual financial
transactions. As a result, all professional accounting designations are the
culmination of years of study and rigorous examinations combined with
a minimum number of years of practical accounting experience.

6
History of Accounting
The history of accounting has been around almost as long as money
itself. Accounting history dates back to ancient civilizations in
Mesopotamia, Egypt, and Babylon. For example, during the Roman
Empire, the government had detailed records of its finances.2 However,
modern accounting as a profession has only been around since the early
19th century.

Luca Pacioli is considered "The Father of Accounting and Bookkeeping"

due to his contributions to the development of accounting as a
profession. An Italian mathematician and friend of Leonardo da Vinci,
Pacioli published a book on the double-entry system of bookkeeping in
1494.3

By 1880, the modern profession of accounting was fully formed and

recognized by the Institute of Chartered Accountants in England and
Wales.4 This institute created many of the systems by which accountants
practice today. The formation of the institute occurred in large part due
to the Industrial Revolution. Merchants not only needed to track their
records but sought to avoid bankruptcy as well.

What are the different types of Accounting?

Accountants may be tasked with recording specific transactions or

working with specific sets of information. For this reason, there are
several broad groups that most accountants can be grouped into.

7
Financial Accounting

Financial accounting refers to the processes used to generate interim and

annual financial statements. The results of all financial transactions that
occur during an accounting period are summarized in the balance
sheet, income statement, and cash flow statement. The financial
statements of most companies are audited annually by an external CPA
firm.

For some, such as publicly-traded companies, audits are a legal

requirement.6 However, lenders also typically require the results of an
external audit annually as part of their debt covenants. Therefore, most
companies will have annual audits for one reason or another.

Managerial Accounting

Managerial accounting uses much of the same data as financial

accounting, but it organizes and utilizes information in different ways.
Namely, in managerial accounting, an accountant generates monthly or
quarterly reports that a business's management team can use to make
decisions about how the business operates. Managerial accounting also
encompasses many other facets of accounting, including budgeting,
forecasting, and various financial analysis tools. Essentially, any
information that may be useful to management falls underneath this
umbrella.

8
Cost Accounting

Just as managerial accounting helps businesses make decisions about

management, cost accounting helps businesses make decisions about
costing. Essentially, cost accounting considers all of the costs related to
producing a product. Analysts, managers, business owners, and
accountants use this information to determine what their products should
cost. In cost accounting, money is cast as an economic factor in
production, whereas in financial accounting, money is considered to be a
measure of a company's economic performance.

Tax Accounting

While financial accountants often use one set of rules to report the
financial position of a company, tax accountants often use a different set
of rules. These rules are set at the federal, state, or local level based on
what return is being filed. Tax accounts balance compliance with
reporting rules while also attempting to minimize a company's tax
liability through thoughtful strategic decision-making. A tax accountant
often oversees the entire tax process of a company: the strategic creation
of the organization chart, the operations, the compliance, the reporting,
and the remittance of tax liability.

Why Accounting is Important?

Accounting is a back-office function where employees may not directly

interface with customers, product developers, or manufacturing.

9
However, accounting plays a key role in the strategic planning, growth,
and compliance requirements of a company.

 Accounting is necessary for company growth. Without insight

into how a business is performing, it is impossible for a company
to make smart financial decisions through forecasting. Without
accounting, a company wouldn't be able to tell which products are
its best sellers, how much profit is made in each department, and
what overhead costs are holding back profits.

 Accounting is necessary for funding. External investors want

confidence that they know what they are investing in. Prior to
private funding, investors will usually require financial statements
(often audited) to gauge the overall health of a company. The same
rules pertain to debt financing. Banks and other lending
institutions will often require financial statements in compliance
with accounting rules as part of the underwriting and review
process for issuing a loan.

 Accounting is necessary for owner exit. Small companies that

may be looking to be acquired often need to present financial
statements as part of acquisition or merger efforts. Instead of
simply closing a business, a business owner may attempt to "cash-
out" of their position and receive compensation for building a
company. The basis for valuing a company is to use its accounting
records.

10
 Accounting is necessary to make payments. A company
naturally incurs debt, and part of the responsibility of managing
that debt is to make payments on time to the appropriate parties.
Without positively fostering these business relationships, a
company may find itself with a key supplier or vendor. Through
accounting, a company can always know who it has debts to and
when those debts are coming due.

 Accounting is necessary to collect payments. A company may

agree to extend credit to its customers. Instead of collecting cash at
the time of an agreement, it may give a customer trade credit terms
such as net 30. Without accounting, a company may have a hard
time keeping track of who owes it money and when that money is
to be received.

 Accounting may be required. Public companies are required to

issue periodic financial statements in compliance with GAAP or
IFRS. Without these financial statements, a company may be de-
listed from an exchange. Without proper tax accounting
compliance, a company may receive fines or penalties.

11
 ORGANIZATIONAL 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
“neighbor” above and below each level . These classification 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 firm’s name is associated with
the names of partners. They are basically the main parties who issue
and sign any report (especially 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

12
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 work etc. and after field work managers with
cooperation of 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 and regulations is the main
responsibility of supervisor s and trainees. They use different kind of
techniques for error and fraud detection.

13
 TOP 11 CA FIRMS IN INDIA

In India’s ever-evolving financial domain, Top Chartered

Accountancy (CA) firms wield significant influence, shaping the
economic paths of both businesses and individuals. Amidst a rising
demand for financial acumen, select CA firms stand out as pioneers,
showcasing remarkable success and impact in the field. This
exploration ventures into the realm of India’s “Most Best Successful
CA Firms,” spotlighting key players who’ve not just navigated
financial complexities but have emerged as frontrunners, setting
standards for excellence and innovation. Join in as we uncover the
narratives behind these distinguished firms, their accomplishments,
and the distinctive strategies propelling them to the forefront of
India’s financial sphere.

The four specialities of financial accounting and reporting,

management accounting, applied finance, and taxes are available to
chartered accountants. Each CA may focus on a more specialized
section, or they may control the whole accounting department of the
business. Below is a list of duties performed by a CA for your
reference.

 Chartered accountants act as trustworthy advisors who plan and

manage the company’s finances.

14
 They provide monthly and annual financial statements, which are
highly useful in assessing the performance of the company.

 They are in charge of making adjustments and resolving the

financial problems of the company since they are knowledgeable
of particular laws, rules, and regulations.

 They work as management accountants, business analysts, sales

managers, and corporate executives in business and industry. The
public sector largely relies on chartered accountants to closely
watch and allocate resources in order to control public spending.

 Some chartered accountants also work as consultants and

independent contractors as it gives them the opportunity to move
through different projects while staying abreast of changing
market trends and new demands.

1. DELOITTE

 Deloitte, in terms of revenue is the

largest professional services network in the world. Also on the

15
 basis of the 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.

It has been a multinational professional services network.

16
The Firm believes in helping resolve complex issues and identifying
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 one of the largest professional services companies in the
world.

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

17
 4. Ernst & Young (known as EY)

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.

5. BDO International

18
BDO International stands at the fifth rank for providing the largest
accounting 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

19
Grant Thornton is a UK-based firm that has branches in almost 125
countries. This firm is known for generating very high revenue which is
more than 4.5 billion dollars.

It provides 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 operate
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 networks 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.

20
It has fully independent member firms and correspondents in 111
countries surveyed, in 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
branches in 100 other countries.

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 parts of the country.

21
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 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)

22
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. It has
its Headquarters in New Delhi and branch offices in Bangalore and
Mumbai.

The Firm has kept its Aim of 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 Intern al 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.

23
It has been one of the 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 their professionals, thus the Firm

focuses on training its employees such that they can find solutions to the
various needs and queries of their clients and thus, achieve 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.

24
 CHAPTER 2
COMPANY PROFILE

ABOUT THE COMPANY

MOHAMMAD AQIB & ASSOCIATES is a leading chartered

accountancy firm. It is rendering comprehensive professional services
which includes 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

25
to offers sound financial advice and personalized proactive services.
Those associated with the firm have regular interactions with industry
and other professionals which enable the firm to keep pace with
contemporary developments and to meet the needs of its clients.

MOHAMMAD AQIB & ASSOCIATES 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.
MOHAMMAD AQIB & ASSOCIATES moulds its operation and areas
of competencies and introduces services so as to assist clients in their
business operations and growth.

DEPARTMENTS OF COMPANY

MOHAMMAD AQIB & ASSOCIATES has its head office in

Lucknow . Almost all 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

26
An audit is one type of assurance that an organization
receives when the audit confirms the data and processes'
quality. The audit is the review of the accounts or
documents, while the assurance is the process analysis of
those accounts or records.

Once analyzed, the organization can make changes as

needed and be "assured" they have accurate financials
and processes in place.

Privately held companies in various industries, nonprofit

organizations, government entities, and employee benefit
plans all require some type of audit. Audited financial
statements are needed for lenders, owners, shareholders,
the board of directors, investors, or other organization
stakeholders. These audits assure that the reported
financial information has the highest level of credibility.

The audit process provides leadership with the assurance

that their financial reports are materially correct and
compliant. Also, leadership derives value from the
reported observations of their internal controls, systems,
and operations gleaned from the audit process.

 Tax and Corporate Department

27
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 referencesand
timely solutions 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 Mohammad Aqib & Associates, some staff is handling with tax

matters as well as corporate matters. While in corporate firm provide
different kinds of services relating to corporate sector from incorporation
to winding up of a company.

 Computer Department

Department handles the computer related matters and assists other

departments in working properly and efficiently. Department deals with
online filling of returns of income for tax department and finalize audit

28
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 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

The hierarchy adopted by Mohammad Aqib & Associates is in

accordance with the legal structure of 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 as extensive hierarchy.

SERVICES OFFERINGS

Assurance Services

29
  Statutory Audits- It is a type of audit to determine whether an
organization providing a fair and accurate representation of its fina
ncial position by examininginformation such as bank balances,
bookkeeping records and financial transactions.
 Concurrent Audit- It is a systematic and timely examination of
financial transactions on a regular basis to ensure accuracy,
authenticity, compliance with procedure and guidelines.
Mohammad Aqib & Associates has done various concurrent audits
of banks like Oriental bank of commerce, Central Bank of
Commerce etc.
 Tax Audits- is a review of accounts of taxpayers with business or
profession from an income tax point of view such as incomes,
deduction, compliance with tax laws, etc.
 Internal and Management Audits-These type of services helps
organizations achieve their objectives. It is concerned with
evaluating and improving the effectiveness of risk management,
control and governance processes in an organization.

Direct and Indirect Taxation

30
Corporate and personal tax compliance including income-tax assessment
s, Appeals before the Commissioner and the Income-tax Appellate
Tribunal.
• Filing of Income-tax and Wealth-tax returns of residents and non-
residents, individuals, domestic and foreign companies and other
entities.
• Domestic Tax Planning.
• GST compliance.
• Personal Advisory Services.
• Personal financial planning.
• Insurance and pension planning.
• Formation of trust.
• Acting as arbitrator.
• Wills

Accounting & Related Consultancy

• Design, implementation and review of accounting manuals.
• Advice on various accounting issues.

Company Law Matters

• Formation of Indian Companies
• Advising on various matters under the Companies Act, 1956
Secretarial Services

31
• Maintenance of statutory records and registers
• Maintenance of minutes book.
•Assistance in preparation and filing of various forms with registrar of
companies

Other Services
Among the many other duties undertaken by a Chartered Accountant,
mention may be made of service as an arbitrator for the settling of
disputes and those connected with insolvency work, such as the
preparation of statements of affairs and the duties of a trustee in
bankruptcy or under a deed of arrangement.

Types of clients
Clients of the chartered accountant’s firm are mostly the taxpayers who
want to file the return or avail any other service. Proprietors, Partnership
firm, Service providers, manufacturing firms, commission agents are the
clients who avail the service of accounting and regular filing of returns.
These parties are the taxpayers and have to pay taxes under GST as per
their registration under GST. Regular GSTIN holders have to
approximately file 3 returns per month, so they have to avail the services
of Chartered Accountants. Other taxpayers who opted for composition
scheme under GST have to file taxes quarterly and these are also done
by services of Chartered Accountants.

32
Industrial Environment Of The Company

33
 SWOT Analysis
STRENGTH
 Partnership Firm
 Skilled Workers
 Loyal Customers
 Strong Brand Equity
WEAKNESS
 Tough Competition from Other Knowledge Consulting Agencies
 Adverse Publicity Due to Lawsuits
 Weak IT department
 Weak Training Procedure for New Audit
OPPORTUNITY
 Complex Tax Laws Enhancing the Opportunity
 Increase in Companies Looking for Expert Business Solutions
 GST
 There are enormous growth prospects in emerging markets
THREATS
 Higher Competition in Market
 External Changes
 Lower Profitability
 Technology Problem

AUDIT

34
Broadly, Audit involves the following:

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

proper understanding. Suggestions for improvement and
strengthing.
 Ensuring compliance with policies, procedures and statutes.
 Comprehensive review to ensure that the accounts are prepare in
accordance with Generally Accepted Accounting Policies and
Applicable Accounting Standards/IFRS.
 Checking the genuineness of the expenses books 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 the companies
 Tax Audit under section 44AB under Income Tax Act 1961
 Audit under other sections of the Income Tax Act 1961
 Concurrent Audits
 Revenue Audit of Banks
 Branch Audit of Banks

35
 Audit of PF Trusts, Charitable Trusts, Schools, etc
 Audit of cooperative societies
 Information System Audit
 Internal Audit

36
 Industry Growth

Growth of this industry is very good as the number of Tax payers are
increasing at the very high pace as the GST has fill a lot of loopholes
that’s why people have to file returns to take Input tax credit. And even
due to decrease in income tax rates mostly people want to convert their
black money in white that’s why they start filing income tax returns.

37
 CHAPTER 3
CONCEPTUAL DISCUSSION

38
 OBJECTIVES OF STUDY

I choose to work with Mohammad Aqib & Associates. During this

internship I have learnt many new skills. Before internship I had only
theoretical knowledge about work in organization but now I have some
practical experience of working in organization. Now I have knowledge
about 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. Following are the
objectives that I have in my mind before working as an intern.

 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 situation
 To learn how to promote and to conduct research in business area
 To promote my personal knowledge and professional preparation
for future

39
 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 behaviour, ethical rules and regulations
 To implement my overall accounting skills practically via entering
accounting data online.
 To secure a challenging position to expand my learnings,
knowledge, and skills.
 To utilize my training and skills, while making a significant
contribution to the success of the company.
 To gain an experience in high-level professional corporate
environment. It is an alternative corporate business form that
offers the benefits of limited liability to the partners at low
compliance costs.
 To gain a practical experience of operating various accounting
softwares like Tally, Excel, Computax, Spectrum, etc

JOB DESCRIPTION

40
 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
secretary Mr. saad alvi gave me training session about TDS returns and
computerised accounting in tally software. Ms. Khushi Singh (assistant)
also shared his practical experience with me and gave me some
techniques of this process. He also guided me that how to prepare VAT
return and creating data in income tax return preparation software. I aosi
learned how to use some softwares.

Different task that I performed during my internship:

1. Maintenance of Accounts/Book keeping

2. TDS Return preparation
3. VAT Return preparation

OVERVIEW OF TDS

41
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 TDS amount deducted will be remitted to the Central Government.

Deductee can check the Tax Deducted at Source (TDS) amount in the
Form 26AS or TDS Certificate issued by the deductor.

TDS helps in keeping a check on tax evasion. Not only this, in this
mechanism, taxpayer is not required to pay a lumpsum amount as annual
tax at the end of the financial year.

To understand TDS meaning better, let’s take an example. If the nature

of payment is professional fees and the specified tax rate is 10%. ABC
Ltd makes a payment of Rs 20,000/- towards professional fees to Mr. X,
then ABC Ltd shall deduct a tax of Rs. 2,000/- and make a net payment
of Rs. 18,000/- (20,000/- deducted by Rs. 2,000/-) to Mr. X. They will

42
directly deposit the amount of Rs. 2,000/- deducted by ABC Ltd to the
credit of the government.

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). 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 noncorporate 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).

For electronic TDS, companies must generate the Form 26Q for each
financial quarter. This is a statutory requirement for the ITD.

43
Process Flow of TDS

44
This process flow shows the steps to charge and remit TDS:-

PREPARATION OF VAT RETURNS

45
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 checkup by the tax office.
2. You prepare the VAT return. This consists of two steps:

3. You calculate
the total amounts
of VAT for each
tax code.
4. 2. You print the
VAT return.
46
5. The system fills
out the fields in
the VAT return
using the totals
that you
6. calculated in
the first step.
7. 3. For
information about
preparing VAT
returns for VAT

47
 withheld from
vendors.
8. 4. You file the
VAT return with
the tax office
and remit the
taxes
9. You calculate
the total amounts
of VAT for each
tax code.

48
10. 2. You print
the VAT return.
11. The system
fills out the fields
in the VAT return
using the totals
that you
12. calculated in
the first step.
13. 3. For
information about
preparing VAT

49
 returns for VAT
withheld from
vendors.
14. 4. You file the
VAT return with
the tax office
and remit the
taxes
15. You calculate
the total amounts
of VAT for each
tax code.

50
16. 2. You print
the VAT return.
17. The system
fills out the fields
in the VAT return
using the totals
that you
18. calculated in
the first step.
19. 3. For
information about
preparing VAT

51
 returns for VAT
withheld from
vendors.
20. 4. You file the
VAT return with
the tax office
and remit the
taxes
 You calculate the total amounts of VAT for each tax code.
 You print the VAT return.
This 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.

Compuoffice online software:-

52
Tax Solution for professionals to provide end-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 and Audit report
 VAT return
 Checking for assessment orders
 ROC form and filling
 CMA
 AIR return
 Document Management
 Challan
 All other required forms
 Standard letters to clients
 Standard formats of departmental letters
 Office assistance works and mechanism
 Various types of reporting

53
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
 Active/De-active 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
 Various data input validation checks to eliminate errors
 Easy auto backup of your precious data
 Option to access from any where in the world

Overview of Tally

54
Tally is powerful accounting software, which is driven by a
technology called concurrent multi-lingual accelerated technology
engine. It is easy to use software and is designed to simply complex day
to day activities associated in an enterprise.

Tally provides comprehensive solution around accounting principles,

inventory and data integrity. Tally also has feature encompassing global
business. Tally software comes with easy to use interface thus making it
operationally simple.

Tally accounting software provides a solution around inventory

management, stock management, invoicing, purchase order
management, discounting, stock valuation methodology, etc.

Tally accounting software also comes with drill down options, which
can track every detail of transaction.

It helps in maintaining simple classification of accounts, general ledger,

accounts receivable and payable, bank reconciliation, etc.

The technology employed by tally makes data reliable and secure.

Tally software supports all the major types of file transfer protocols.
This helps in connecting files across multiple office locations.

Tally accounting software is capable of undertaking financial analysis

and financial management. It provides information around receivables

55
turnover, cash flow statement, activity consolidation and even branch
accounting.

Tally accounting software is easy to set up and simple to use. A single

connection can support multiple users. It can be easily used in
conjunction with the Internet making possible to publish global financial
reports.

Tally accounting software can seamlessly connect with various

Microsoft applications.

Benefits of Tally Accounting Software

Any business owner understands the importance of maintaining proper

books of account. This practice ensures that finance for the company is
always in order and are correct at all given points of time. Company
should always be aware of its financial positions.

Earlier, most of the businesses were employing manual practice in

maintaining books of account. However, with the advent of modern
information technology, this task can be performed by accounting
software. Tally is one such all powerful accounting software.

Tally accounting software provides a solution to all the problems real

businesses have to encounter. Single software takes care of all tasks
required for enterprise management.

56
Accounting task such as records keeping, accounts receivable and
payable management and bank reconciliation are made simple through
tally.

Financial management is also made simpler under Tally software.

The software allows management of finances across multiple locations
can handle multiple currency transactions, manage cash flow and interest
payment.

Thus, Tally software is flexible, reliable, secure, easy to use and

affordable.

 Multiple Billing Formats: This solution provides several

commercial billing options to complement your business
requirements. It also lets you customize billing formats for
different goods and services.

 Expiry Date Management: It simplifies the expiry date of

products by creating and maintaining a batch summary report. It
includes details by manufacturing date, expiry date, and number of
days left for the expiry.

 Supports Multi-Currency Transactions: With the support for

multiple currencies, you can generate invoices, get quotations,
accept or receive payments in the international currency.
Moreover, it also adjusts currency rates through auto calculation.

57
 Projects the Cash Flow: The software considers different
instances of expected inflow and outflow and accordingly depicts
the cash flow for the specific period. Basic Tally computer
software also generates reports for the same to plan savings and
expenditure.

 Stay Audit Trail Compliant: With TallyPrime, you can stay

audit trail compliant by creating and maintaining all the
transactions along with other details like date and time. It also
notes the number of users and deleted transactions data.

 Cheque Management: Easily view, track, and search for your

cheque details by keeping all the data in different cheque books. It
offers different cheque books for different banks with unique
specifications.

 Easy Export Data: TallyPrime lets users export data in six

different formats including ASCII (Comma delimited), Excel
(Spreadsheet), HTML (web-publishing), JPEG (Image). It also
supports PDF (Portable Document Format), and XML (data
interchange) format.

 Maintain a Manufacturing Journal: Maintain the manufacturing

journal for your business that includes records for raw materials
procured, total materials sold, product cost. Also record the data

58
 for finished products, scraps, and by-products with computer Tally
software.

 Create a Detailed Bills of Materials: With TallyPrime, you can

easily define raw materials and components along with their
quantity needed to create a finished product. It also lets you
mention the by or co products of finished goods.

 Easily Cancel E-Invoice: If the IRN number has already been

registered for an invoice then you can easily cancel the e-invoice
by sending data to IRP portal directly.

Some key features of TallyPrime include-

 GST Compliant Invoicing: TallyPrime has made it easy for

businesses to generate fully GST compliant invoices along with
IRN and GST numbers. Further, you can also custom them with
the business’s logo and other preferences.

 Purchase and Sales Management: Easily manage different types

of purchase and sales processes with up-to-date data through the
solution.

 Multiple Stock Valuation Methods: The solution lets you value

your stock items through several methods including FIFO
Perpetual, Average Cost, Last Purchase Cost, LIFO Annual, etc. It
also supports LIFO Perpetual and LIFO annual methods.

59
 Business Reports: You can generate different reports for ledger,
purchase, cashflow, sales, profit, loss, inventory items, and more
with TallyPrime. Easily personalize the reports by saving them in
various ways as per your choice.

 Receivable and Payable Management: TallyPrime makes it

easier for businesses to track and maintain the record of all the
account receivables and payables through the IRN number.

 E-Invoices and E-Way bills Generation: Through integration with

GSTN and e-way portal, TallyPrime helps business generate
accurate e-invoices and e-way bills, thus saving time and effort.

 TDS and TDC Management: TallyPrime has simplified the

management of TDS and TDC filing by detecting incomplete or
wrong information. All the return filing forms are designed to
detect errors and ensure 100% accurate TDS and TDC filing.

 Auto Bank Reconciliation: With TallyPrime, you can easily

reconcile bank statements automatically by uploading e-statements
from the bank. It lets users reconcile bank statements for up to 100
banks.

 Cash Deposit Slips Generation: This software lets you generate

accurate cash deposit slips by automatically filling details directly
from the bank ledger. Therefore, eliminates the need to deposit
cash slips manually in bank.

60
  Previous Tax Regimes Management: The solution lets you
manage all the business data for the previous tax regimes including
VAT, Excise, or CST. You can also generate reports for these tax
regimes for an entire financial year with it.

 GST Return Filing: It lets you file for GST return directly
through the integration with GSTN portal. You just have to fill all
the GST-related details accurately. It comes with a built-in error
detector and corrector to ensure all the details are filled in
accurately.

 GST Compliance for Composition Dealers: It helps all the

dealers who have opted for the composition scheme to stay
compliant by recording supply bills. Tally introduction also
generates GSTR-4/CMP-08 in the prescribed format for easy
return filing.

Follow the below steps to easily use computer Tally software:

 Create the Company Account: Set up your company on the

account Tally introduction basic software by adding the name,
address, current financial year, business, type, industry, etc.

 Configure All Features: Once the account is completed,

configure all the features you want to use. Choose from inventory,
banking, GST and compliance, credit and cash flow, accounting,
reporting, etc.

61
 Load all the Company: After this, your company details will
appear by default on TallyPrime whenever you open the solution.

 Update the Company Details if Needed: If there has been any

change in the company’s data in terms of tax details, business
type, etc., you can easily update it through the company alteration
section.

 Configure Security Settings: You need to configure all the

security settings to prevent unauthorized access to the company’s
data by setting user-based permissions. It also provides encryption
for data security.

62
 CHAPTER 4
WORK & RESEARCH

DESCRIPTION OF ACCOMPLISHED WORK IN

ORGANIZATION

63
Update the acknowledgement of ITR (Income Tax Return):

Most of us file our income-tax (I-T) returns ‘online’ before the July
31 deadline. Electronic filing (e-filing) is convenient and even can
even pay your taxes online. However, filing returns online does not
mean that the process of filing return is complete. If the person added
your ‘digital signature’ while e-filing, then the return filing process is
complete and will receive the acknowledgement by Income Tax
department through email.

But if the return is filed online ‘without adding digital signature’, then
the process of e-filing is not complete. E-filing will only be complete
after the central processing Centre(CPC) of the I-T department sends
an email or SMS acknowledging the receipt of the Form ITR-V.

ITR-V stands for ‘Income Tax Return–Verification ’ Form. It is a

one-page document. ITR-V is received when ITR file online
— without using a digital signature. It is sent by the I-T Department.
The I-T Department needs to verify the authenticity of your e-filing
which does not have a digital signature. On receipt of Form ITR-V,
you have to sign the copy of the Form in ‘blue ink’ and submit it to
the I-T Department CPC, Bangalore to complete the filing process.

Prepared Net Worth Certificate of clients:

Net worth thus gives a good indication of the total financial worth of
a person at a point in [Link] worth certificate is a document that is

64
compiled and certified usually by a Chartered Accountant taking into
consideration all the assets and liabilities of the individual or
Enterprise

Maintaining excel sheet for recording of figures entered while

filing of return:

While filing of return under GST, certain figures are asked which are
recorded in excel for record purpose. Different products/services
carry different rates of taxes and are charged accordingly. The
supplies outward, purchases are recorded under the respective rates
while maintaining the excel sheet. The purpose of recording such
information is to verify it later with the invoices and any such
difference can be further rectified if there is a provision to do so.
Following items are recorded while preparing the excel sheets:-

(a)Different rates of taxes applicable on goods/services a

organization deals.
(b)Purchases made under different rates of taxes.
(c)Sales made under different rates of taxes.
(d)Purchase returns made within the period.
(e)Invoices cancelled
(f) Amount of CGST, SGST and IGST paid on purchases.
(g) Amount of CGST, SGST and IGST applicable on
sales.

65
 (h) Taxes paid the purpose of maintaining of this data is
for the purpose of internal record. By this the value
can be checked which is entered at the time of filing of
return and all the data is assessed at a single place.

Applying GST

Any person carrying on some business, is selling goods/services and

earning some in come needs to register under GST and obtain
GSTIN. However, persons having taxable income (from sale
of goods/services) below 20lakhs have no compulsion as to get itself
registered under GST. The National Development Council has set
certain states as special category states and in these states persons
having taxable income (from sale of goods/services) above 10lakhs
need to get themselves registered under GST. Currently, Assam,
Nagaland, Jammu & Kashmir, Arunachal Pradesh, Manipur,
Meghalaya, Mizoram, Uttarakhand, Tripura, Himachal Pradesh, and
Sikkim are considered special category states. The National
Development Council composed of the Prime Minister, Union
Ministers, Chief Ministers and members of the Planning Commission
determines the list of special category states in India. Also, the
decision to accorded special status to a State is based on factors
like: hilly and difficult terrain; low population density and
or sizeable share of tribal population; strategic

66
location along borders with neighboring countries; economic and infr
astructure backwardness andnon-viable nature of state finances.

Person who mandatorily need GST registration

a) Person making any inter-state taxable supply- any person who

supplies goods/services to other state has to register itself under
GST.
b) Casual taxable persons making taxable supply- person who
occasionally engages in buying and selling of goods/services.
c) Non-resident taxable persons making taxable supply- a person who
is not aresident of India and supplies goods/services to a taxable
person in India, but has no fixed place of operations.
d) Persons who make taxable supply of goods or services on behalf
of other
other personsagents, brokers, dealers, professionals, etc performin
g some taxableactivity on behalf of other person has to get
itself registered under GST.
e) Electronic Commerce Operator- electronic commerce operator
supplies goods/services electronically and owns, operates and
manages digital transfer media through which supply is made.
Such person has to get itself registered under GST.
f) Person supplying online information and database access or
retrieval services- person supplying online information
and database from place outside India to a person in India.

67
 g) person who supplies goods/services through electronic commerce
operators,other than those where operators collect tax at source
from the supplier are required to register under GST.
h) Persons Having Service Tax or VAT or Central Excise
Registration- a person who was registered under service tax or Vat
or central excise law as on date of introduction of GST, are
required to get registration under GST.
i) Transferee or Successor of a Business- a person who is registered
under GST transfers its business to other person then such person
has to mandatorily get itself registered under GST

Person who does not mandatorily has to get itself registered under
GST

(a)A person who sells goods/services that is not liable to tax

under GST or such goods/services are fully exempted from
tax.
(b)A person earning income from agricultural produce as long
as the supply is to the extent that it avails exemption from
obtaining GST registration. Here, agriculturist is a person
who undertakes cultivation of land by own labour or by the
labour of family or by servants on wages payable on cash or
kind.

68
Schemes under GST

A person who gets himself registered under GST has the option to avail
the composition scheme or go for Regular GSTIN. A person can
avail composition scheme if its annual turnover is less than 75lakhs.
Composition dealer has to file the quarterly return instead of three
monthly return as in case of normal GSTIN holders. They need not issue
taxable in voice which means that they cannot collect tax from
the customers. These holders do not even avail input tax credit. They
have to pay tax at a fix rate of 1% on annual sales. Manufacturers have
to pay @ 2%. Suppliers of food or drink other than alcohol for human
consumption have to pay tax at a fix rate of 5%.

Composition scheme is not applicable to:-

1. Service providers
2. Inter-state sellers
3. E-commerce sellers
4. Suppliers of non-taxable goods
5. Manufacturer of Notified Goods

Some very important forms of GSTR

69
GSTR 1: Return Filing, Format, Eligibility & Rules. GSTR-1 is a
monthly return that summarizes all sales (outward supplies) of a
taxpayer. GSTR 1 is to be filed by the taxpayers holding regular GSTIN.
It prescribes the details to be mentioned by the taxpayer for the sales
made by him in the prescribed period. The details of outward supply
made by the taxpayer are to be provided bill wise. This return is to be
filed monthly and the sales of the month are to be provided. Here,
the purpose of declaring outward supply is to compute the tax liability of
the supplier. Here the taxpayer should be very careful while declaring
the outward supply detail as this will be auto populated in GSTR 2. It
should also be ensured that the information declared by the
registered person tallies with the financial ledger. Sales account in the fi
nancial ledger shall be bifurcated into various heads to ensure that the a
mount declared in each of the tabletallies with the balance shown in the
financial ledger code. Thus, mapping of tables with financial ledger code
shall be done to ensure completeness and correctness of the information
declared in [Link] information so provided of the outward supply
by the supplier will be provided to the registered taxpayer after due date
of GSTR 1 on the Part A of GSTR 2A. In GSTR2A the information
provided by the supplier is tallied bill wise. In GSTR 2A, details
regarding the purchase is to be entered and this is tallied by the
information provided by the supplier in GSTR 1.

Particulars to be filed under GSTR 1 are:

70
a) GSTIN of the taxpayer- It is the 15 digits alphanumeric code
which is provided to a person registered under GST.
b) Name of the registered person- Name of registered person will be
auto filledwhen GSTIN is provided.
c) Aggregate turnover in the preceding financial year.
d) Taxable sales to a registered person (B2B) other than zero rated
sales and deemed exports- Amount of sales made to a registered
person is to be recorded.
e) Taxable sales to a unregistered person (B2C) where invoice price
is more than 2.5lakhs - Amount of sales to a consumer of goods or
the person who is not registered under GST.
f) Zero rated sales and deemed exports- This is the value exports,
sales to sez and deemed exports.
g) Taxable sales to an unregistered party with outward supplies of
less than 2.5lakhs.
h) Nil rated, exempt and non-GST outward sales- this will
include the sale of goods which are nil rated or are exempted from
tax under GST. This will also include nil rated interstate and
intrastate transactions.
i) Amendments to details of the invoice- Under this head all the
transactions which are amended in the current tax period. Credit
note, debit notes, refund vouchers and cancelled invoices are
recorded under this head.

71
 j) Details of debit note and credit note issued to a unregistered
person.
k) Amendments of details of outward supply of earlier tax periods- It
denotes the details of Advances Received/Advance adjusted in the
current tax period.
l) HSN wise summary of outward supplies.
m)Documents issued during the tax period- All the documents issued
like debit note, credit note, invoice, receipt vouchers, payment
vouchers, refund vouchers.

Government has updated rules regarding filing of GSTR 1. Firstly,

GSTR 1 was to be filled monthly for all the taxpayers registered under
GST and holding normal GSTIN but now there is a option for the
taxpayers with outward supplies less than 1.5 crores to file the GSTR 1
quarterly. In other words, it states that taxpayers with outward supplies
of less than 1.5 crores can file the return on quarter basis. Further the
taxpayers with regular GSTIN and having outward sales of less than 1.5
crores have the option to file quarterly and now the GSTR 1 of such
taxpayers will be filled for the quarter . Other taxpayers with outward
supplies of more than 1.5 crores have to file the return GSTR1 of the
period of 4 months and further.

Return once filed cannot be revised. Any mistake made in the return can
be rectified in the next periods (month/quarter) return. It means that if a
mistake is made in September GSTR- rectification for the same can be

72
made in October’s GSTR Late Fees for not filing GSTR-1 is Rs. 200
per day of delay (Rs. 100 as per CGST Act and Rs. 100as per SGST Act.
The late fees will be charged from the date after the due date.

GSTR 2A:

It is a purchase-related tax return that is automatically generated for

each business by the GST portal. GSTR-2A is a read-only document
with a list of all of the invoices from the various sellers during the
month. My Mentor CA Mohd. Aqib asked me to keep record of it by
download a copy of it. He told me that they have to keep record of it to
file GSTR-3B as It helps in calculating Net Input Tax Credit

GSTR-3B

is a simple summary return that all normal taxpayers must file monthly.
Taxpayers are allowed to take the input tax credit (ITC) based on the
details by the taxpayer in Form GSTR-3B.

GSTR-3B is the simple return introduced by taxation department in

which simple sales and purchase amount is to be mentioned. This return
does not ask for the full fledged information as per the invoice. Here,
simple total values of sales and purchase are to be provided. GSTR 3B is
to be filled by 20th of the next month for which the return is to be filled.
Filing of GSTR 3B is mandatory for all the taxpayers holding regular
GSTIN and is to be filled monthly. In case, a taxpayer has

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no transactions during the month still it is a compulsion for him to file a
return. In this case a taxpayer has to file a nil return.

GSTR-3 is a monthly return with the summarized details of sales,

purchases, sales during the month along with the amount of GST
liability. This return is auto-generated pulling information from GSTR-1
and GSTR-2.

GSTR-3B is to be filed by all the taxpayers registered under GST.

However, the following registrants do not have to file GSTR-3B

1. Input Service Distributors

2. Composition Dealers
3. Suppliers of online information and database access or retrieval
services(OIDAR), who have to pay tax themselves (as per Section
14 of the IGST Act)
4. Non-resident taxable person

GSTR-3 will show the amount of tax liability for the month and this has
to be filled and tax liability has to be paid. The liability to pay tax arises
only if input tax credit is less than the output tax. In other words, it states
that the liability to pay tax arises only if value of sales is more than that
of purchases.

A registered taxpayer who does not file GSTR-3B will have to face
heavy fines and penalty. If GSTR-3 return is not filed then the GSTR-1
of the next month cannot be filed. Hence, late filing of GST return

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will have a cascading effect leading to heavy fines and penalty. In case
the return is filed late then taxpayer will have to incur penalty of Rs.
100/day for CGST and Rs. 100/day for SGST. To conclude a taxpayer
has to pay a penalty of Rs. 200/day for late filing of the return and the
maximum fine which is to be paid is Rs. 5000. In addition to later fee
charges a taxpayer has to pay interest @ 18% per annum, on the amount
of outstanding taxes if any. There is no late fee charges for IGST.

GSTR-3B once filled cannot be revised. Any mistake incurred in filing

of return can be rectified while filing the GSTR-1 and GSTR-2. There is
no provision to rectify there turn once it is filed.

GSTR 4:

GSTR 4 is the return which is to filled by the taxpayers who have opted
for composition scheme under GST. A person carrying on business and
having yearly sales of less than 75 lakhs or 75 lakhs can opt for
composition scheme and avail the facility of paying tax at a fixed
rate and file quarterly return. These taxpayers have to pay tax at the
fixed rate of 1% of gross sales. The tax is paid quarterly on the amount
of sales without any benefit of input tax credit. The taxpayer has to
declare:-

a) Total consolidated value of sales made during the year.

b) Amount of tax paid on sales.

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 c) Invoice level purchase from the parties with regular GST number,
and this will be auto drafted in form GSTR 4A from the invoice
details submitted by the party holding regular GST number in the
filing of GSTR 1.

Due date of filling of GSTR 4 is date 18th of next month after the end
of quarter. GSTR4 was filled for the second quarter of the financial year
but was filled for the first time since the introduction of GST. July-
September was the first quarter for which GSTR 4was to be filled. So,
according to the rule due date of filling of GSTR 4 stood to be October
18 but it was extended till December 24. Reasons for extending the due
date were many. There were some internal problems with the site
‘[Link]’ as the GST return was filled for the first time so many
of the professionals did not have much idea of how to file the proper
return of the taxable person.

MCA regulates corporate affairs in India through the Companies Act,

1956, 2013 and other allied Acts, Bills and Rules. MCA also protects
investors and offers many important services to stakeholders. This site is
your gateway to all services, guidance, and other corporate affairs
related information.

Mentor also give us knowledge about TReDS:

TReDS is an online electronic institutional mechanism for facilitating

the financing of trade receivables of MSMEs through multiple

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financiers. The TReDS Platform will enable discounting of invoices/bills
of exchange of MSME Sellers against large corporates including Govt.
Departments and PSUs, through an auction mechanism, to ensure
prompt realization of trade receivables at competitive market rates.

Add new clients in Tax Pro software:

Tax Pro is a software where e-Return scan be directly uploaded with

auto login to e-filing portal and e-Return Acknowledgements can be
stored and retrieved directly by software itself.

Contact to clients to inform them that their GST returns are yet
pending:

It is the duty of the Chartered Accountants to inform the clients that the
returns are still pending and ask them to fill returns as soon as possible
because most of the clients come on the last days due to that site may
crash at last moment and clients have to pay penalty.

Checking the validity period of Digital Signatures of the

clients to maintain records in Excel sheet:

My mentor CA Mohd. Aqib assigned me work of maintaining the excel

sheet in which I have to record the firm’s name of the clients and the
expiry date of that signatures. A digital signature is a mathematical
scheme that validates the integrity or authenticity of a given digital
document or digital message. Digital signature certificates are the

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electronic or digital equivalent of paper certificates. Digital signature
certificates validate your digital signature and for affixing digital
signatures to e-documents digital signature certificates are required.
Generally, certificates are used to prove the identity of a person for
particular purpose like driving license or passport or pan card or others.
Similarly, digital signature certificates are used to prove the identity of
the person digitally to avail information or services on the internet and to
sign certain documents digitally.

Types of Digital Signature Certificates

There are three types of digital signature certificates depending on the

validation of identity and type of use. They are:

Class I DSC– Individuals get it for validating the email identification of

the users and in situations where risk is minimal and here the signature is
stored in software.

Class II DSC– Business organizations or individuals use this digital

signature certificate to validate the information given by the subscriber
in the application against the information available in a trusted consumer
database and in other such situations where security risk is moderate. In
this case a hardware cryptographic device is used for storing the
signature.

Class III DSC– This digital certificate is directly issued by the

certifying authority and it is required that the person applying for DSC

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must be present at the certifying authority’s premises and prove his/her
identity in front of the authority and the security risk involved in this
case is very high. In this case also a hardware cryptographic device is
used for storing the signature.

Process of getting Digital Signature

A licensed authority also called as Certification Authority (CA) that has

been granted the license to issue digital signature certificates by the
Government of India can issue digital signature certificate under the
Information Technology Act 2000. You should pay a specified fee and
submit certain documents for obtaining DSC from CA. The e-KYC
documents will fetch your DSC on the same day from CA. The
documents are:

 Self-attested PAN card as identity proof.

 Voter ID card or driving license or passport or latest utility bill as
address proof.

The Necessity of Digital Signature Certificates

For e-filing of the income tax returns by any individual, the Government
of India has made it mandatory to affix digital signatures to the income
tax returns documents. For affixing the digital signature one must have
digital signature certificates issued by licensed certification authority. In
addition, Ministry of Corporate Affairs has set the mandatory guidelines
for the companies directing them to file all reports, applications and

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forms using a digital signature only and this again requires a digital
signature certificate. For GST also a company must verify its GST
application by affixing a digital signature using digital signature
certificate in order to get registered for GST. Now a days many
Government procedures, filling different applications, amendments and
forms require digital signatures made by using digital signature
certificates.

Benefits of Digital Signature Certificates

Saves Money & Time:

As there is no need of physical presence you can digitally sign your

PDF files and other documents using DSC anywhere & anytime. You
need not sign your paper documents and then scan them to send them
across through internet if you follow the above given option. You can
save the money which would otherwise be spent on printing and
scanning the document. You can also go green by saving paper.

Secured Data:

The digitally signed documents are tamper proof as the digital

signatures are secured with a private key and public key and they cannot
be edited after digitally signing the document

Authentic:

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Digitally signed documents are authentic and the receiver can be
completely sure about the sender’s identity and integrity. The receiver
can easily execute the information in the document without worrying
about the document being forged.

Validity of Digital Signature Certificates

The digital signature certificates in India issued by licensed certifying

authority approved by Ministry of Information & Technology are valid
in India as per the ‘Information Technology Act 2000’. The DSC’s come
with an explicit starting date & explicit expiration date. Usually the
expiration time for standard digital signature certificates issued by CA
will be from 1 year to 2 years. The digital signature certificates are
managed by Certificate Revocation List (CRL) based on expiration date.
An Indian national can have two DSC’s, one for his personal
identification and another one for official identification.

Prepared MOA required to register a society under the Society

Registration Act, 1860

My mentor gave me project of making the Memorandum of Association

for the registration of the ‘Public Welfare Society’ under the Society
registration Act, 1860.

He gave me a format of Memorandum of Association of a society.

Introduction Of Society Registration Act, 1860

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  Societies formed by memorandum of association and
registration:

Any seven or more persons associated for any literary, scientific or

charitable purpose, or for any such purpose as it is described in section
20 of this act, may by subscribing their names to a memorandum of
association and filing the registrar of Joint-stock companies from
themselves into a society under this Act.

 Memorandum of association:

The memorandum of association shall contain the following things-

1. The name of the society

2. The objects of the society
3. The names, address, and occupations of the governors, council,
directors, committee or other governing body to whom, by the
rules of the society, the management of its affairs is entrusted.
4. A copy of the rules and regulations of the society, certified to be a
correct copy by not less than three of the members of the
governing body, shall be filled with the memorandum of
association

Prepared Project Balance Sheet, Cash Flow Statement and other

accounts that are required to apply for Bank Loan to establish new
business:

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My mentor Ca Mohd. Aqib provides me necessary information and asks
me to make projected P&L account, Balance sheet and cash Flow
Statement.

To create a projected P&L and balance sheet, a business makes certain

assumptions about how individual Profit and loss and balance sheet
items may change over time in the future. Business plans often focus on
anticipated future sales. A projected balance sheet also starts with
forecasting sales revenues. And have to decide future profit margin.
Certain balance sheet items, such as inventory, accounts receivable and
accounts payable, exhibit relatively constant relationships to sales, and
projections on those items can be made based on projected sales. Other
Profit and loss items like indirect expenses and revenue and balance
sheet items, particularly fixed assets, debt and equity, change only in
accordance with a business's policies and management decisions,
independent of future sales.

To create projected cash flow Prepare the income or sales for the
business— a sales forecast. Prepare detail on any other estimated cash
inflows. Prepare detail on all estimated cash outflows and expenses.
Prepare your cash flow forecast by putting all the gathered detail
together.

Need

Identification and recording of transactions

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The primary object of accounting is to identify the financial transactions
and to record these systematically in the books of accounts. As a result,
the true nature of each and every transaction is known without much
exercise of memory. With this end in view, the transactions are primarily
recorded in general and in a special journal and later on permanently
various accounts are kept in the ledger.

Ascertainment of results

Every business concern is interested to know its operating results at the

end of a particular period. The amount of profit or loss for a particular
period of a business concern can be ascertained by preparing an income
statement with the help of ledger account balances of revenue nature.
Surplus or deficit of revenue for a particular period of a non-trading
concern can also be ascertained by preparing income and expenditure
account or statement.

Ascertainment of financial affairs

Ascertainment of debts-liabilities, property, and assets i.e. total financial

affairs of an organization at a particular date is another important object
of Accounting. Financial affairs of concern at a particular date can be
ascertained by preparing a balance sheet. The balance sheet is the
statement of assets and liabilities of concern at a particular date.

Keeping accounts of cash

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Cash book is a prominent book of the books of accounts. Cash receipts
and cash payments are accounted for in this book. A number of daily
cash receipts, payments, cash in hand and cash at the bank can be known
from this book. Fraud, forgery, and misappropriation of money are
reduced by keeping cash book scientifically and accurately.

RESEARCH METHODOLOGY

In mainly, I used two types of data collection methods for this research
purpose

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1. Primary data

2. Secondary data

1. Primary data

This report has prepared through extensive use of primary data. It is

collected from group of people who are related with this company the
following method are used in collecting primary data.

Primary data is the data that is collected for the first time through
personal experiences or evidence, particularly for research. It is also
described as raw data or first-hand information. The mode of assembling
the information is costly, as the analysis is done by an agency or an
external organisation, and needs human resources and investment. The
investigator supervises and controls the data collection process directly

The data is mostly collected through observations, physical testing,

mailed questionnaires, surveys, personal interviews, telephonic
interviews, case studies, and focus groups, etc.

12. Secondary data :

Secondary data is collected from the company’s collected from the

company’s manuals report and brochures through company’s records.
Secondary data is a second-hand data that is already collected and

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recorded by some researchers for their purpose, and not for the
current research problem. It is accessible in the form of data collected
from different sources such as government publications, censuses,
internal records of the organisation, books, journal articles, websites
and reports, etc.

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 CHAPTER 5
LEARNING,
SUGGESTION &
CONCLUSION

LEARNINGS

I learned through my training program, that how I can

 Improve communication skills.

 Analyze the business situation.

 Establish high standard in professionalism.

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 Learn more than the theoretical knowledge.

 Learn book keeping practices of different companies.

 Apply the theoretical knowledge in actual organisation.

 Compare practical aspects with theoretical aspects.

 Make quick decision in real situation.

 Learn how promote and conduct research in business area

 Promote my personal knowledge and professional

preparation for future.
 To properly integrate my theoretical knowledge and practical
work.

 Plan for the future of oneself and learn how to adjust in an

organisation.

 Know how to present your recommendations in front of your

boss.

 Get knowledge of opportunities and threats while entering into an

organisation.

 Get exposure to do a work in an organisation and also known

about organizational behaviour, ethical rules and regulations.

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 PROBLEM

Chartered Accountant firm has to maintain the record of all the clients
and various documents. In addition to the record of clients, the record
of transactions and working of each clients business is to be recorded
separately. The transactions relating to
clients business is recorded in tally which helps them to file the tax re
turns efficiently. Forrecording the transactions in software,
transactions done by the clients should be known to the employee

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who is engaged in recording of these transactions. So, for recording
the transactions effectively and well in time he needs to gather the
details well before they are needed.

The problem arises when the information is not gathered on time.

This may be due to carelessness of the employee concerned with
recording of transactions or on part of client who has to provide the
information. Same problem arises in Mohammad Aqib & Associates.
Some of the clients of the firm are not much aware about when the
return is to be filled so they do not provide proper details till that time
and when asked for the details by the employee the information is
delayed by the clients. Due to the shortage of time the transactions are
recorded in a hurry and in this process there are chances that the
transaction is missed and no record is made of such transaction.
When the transaction is missed then it will lead to wrongly filing of
return and in certain cases this leads to Tax liability on client. After
the introduction of GST, the importance of recording the outward
supplies, purchases, credit vouchers, etc has increased. In this GSTIN
of all the parties of the client is to be recorded and in some
cases GSTIN entered on the invoice is wrongly put and when entered
in tally, it shows the error and transaction is stopped. Problems
caused due to lack of timely gathering of information:-
(a) Important transactions of clients business are missed.

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(b) Recording of transactions in computer software is done in a hurry
so, the chances of error increases.

(c) Returns are not submitted within due date.

(d) There is error in filing of return.

(e) In some returns, transactions are cross verified and in that case if a
transaction is missed then it will lead to error in filing of return.

(f) There is less time left for verification of transactions recorded

with the invoices, receipts and vouchers.

Suggestions Given To Solve the Above Problem:

 Strictly ask to employees to collect the information from the

clients
 Give discount to clients who come earlier
 Inform client time to time that they have to provide information on
time and ask strictly to them that they are not responsible if any
error occurred in future due to late information
 Update clients time to time by Providing information about new
way of recording transaction

Another Problem

is that clients of the chartered accountant meet him regularly for

some financial advice, filing of return, and for some other financial
purpose. The interaction of the two is must in order to fulfill the

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objective of the clients. In the firm I worked, Chartered Accountant
was not available in the timings mentioned by him and so the clients
were not able to fulfill their objective. This non availability may lead
to loss of clients as they may switch to another Chartered Accountant
to fulfill their purpose.

Suggestion:

Chartered Accountant should try to be available as much as possible

and if it is not possible then he should inform the clients before the
meeting timings and ask his employees to solve their problem
sometime problem is very small that employees of the office can
handle it easily.

SOME OTHER SUGGESTIONS

 Main server system should be technically fine so that it won't

create a barrier for other systems.
 Rotational work should be distributed among the employees so
that each & every employee must be aware about everything.
 Hardware systems & other devices should be of good quality &
quantity so that it won't create a lack of electronic equipments
i.e. (Monitor, keyboard, mouse, CPU, LAN connection,
printer).

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  Staff should be encouraged to communicate more frequently
with each other in English with the employees to create a
formal corporate atmosphere.
 Work should be prioritized according to the urgent requirement
of completion so that important tasks would get complete on
time.

LIMITATIONS
 Duration of the internship was quite small.
 Working hours were 8, so wasn’t able to invest my time into other
important tasks.
 At times the data available for study can be too large, which makes
it a time consuming tasks.
 Sometimes it happens that the server & internet connection is low
& accounting tasks are put on hold.

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 In bank statements, sometimes closing balances doesn’t match, so
it becomes a time consuming task to re-verify previous balances
by checking or altering tally entries.
 Sometimes server issue comes from the main system which
disables all other systems work which makes the work delay.

CONCLUSIONS
 From the internship, it was seen that how manual accounting is
converted to practical accounting by usage of various softwares.
 Basic concepts of accounts which was introduced from class 11th
were actually included while implementation in tally software.
 For GST work, various softwares like Spectrum & Computax were
used.
 Every voucher entry & specially share purchase & sales entries
were recorded in the systematical way in tally.

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 Stock audit was done & it was found that in every manufacturing
unit, accurate number of stocks must be there in order to meet the
demand for the consumers so that no discrepancy can be taken out.
 From the vouching, it was found that some purchase or sales bills
were missing from the accounting data, so it created awareness for
an auditor to identify missing entries & to alter it.
 There came a new software i.e. MARG which is actually used in
dealing with broad business accounting.

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 BIBLIOGRAPHY

Bibliography

 Data extraction from the corporate register provided by the CA.

 [Link]
accountingsystem.
 Data extraction of work done from ms excel.
 Accounting pdf from google chrome.
 Identification of limitations & intiation of suggestions from the
corporate CA firm

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