Summer Internship Report on Income

Tax & GST

Submitted to
CHITKARA BUSINESS SCHOOL
In partial fulfilment of the requirements for the award of degree of

Bachelor of Commerce 2020-23

Submitted by: Supervised by:

Divya Dr. Muskan Arora

(2020991506) Assistant Professor

CHITKARA BUSINESS SCHOOL

CHITKARA UNIVERSITY 2021

 ( Rohit Om Prakash & Co.)

Addressed to Chitkara Business School

Internship Offer Letter

Certificate
DECLARATION ON AUTHENTICITY OF THE REPORT
I, "Divya”, hereby declare that the work presented herein is genuine work done
originally by me and has not been published or submitted elsewhere. Experience is
accurate and that I worked in the Rohit Om Prakash & Co. for the duration given in
the certificate.

Any literature, data or work done by others and cited in the report has been given
due acknowledgement and listed in the reference section.

Divya Dr. Muskan Arora

Roll No. 2020991506

 Acknowledgements
This is a matter of pleasure for me to acknowledge my deep sense of gratitude to
Chitkara University and CA Rohit Om Prakash, for giving me an opportunity to
explore my abilities via this internship programme. Working on this report was a
great fun, excitement, challenges and a new exposure in the field of Income Tax
and GST as well.

I would like to express my sincere gratitude to our Principal, Mr. Ashok Chitkara
and our Internship incharge, Dr. Muskan Arora for this opportunity. I also wish to
express my gratitude to my internship supervisors CA Rohit Om Prakash and
Sandeep Arora Accountant, for their valuable guidance and advice in completing
this project.

I would like to record my sincere appreciation and gratitude towards all the
officials and employees of Rohit’s Om Prakash Co. without whose kind assistance,
my internship program would not have succeeded. The facts and other important
information provided by them have contributed towards making this project as
inclusive as possible. I am indeed so much thankful to them.

I am also very thankful and grateful towards my seniors, colleagues and authorities
for their support, encouragement, and valuable suggestions for the completion of
this project as well as for their generosity and cooperation.

Last but not the least, I would like to express my sincere thanks to all my family
members, friends and well-wishers for their immense support and best wishes
throughout the internship duration and the preparation of this report.

I believe that this report will be a valuable asset not only for academic institution,
but will also be useful for all those who are interested to learn about internship
experiences in filling Income Tax & GST Returns.

Executive Summary/Abstract
First of all i would like to tell about that how i choose this company for my
internship. As i worked under CA’s company namely Rohit Om Prakah & Co.
Which is located in my native city Rajpura. So the respected CA Mr. Rohit and his
father are in my family friend’s list. Therefore i asked them related to my
university’s summer internship and also asked them Are they willing to have me in
their company So for that they took my short interview in which i got selected.
That’s all about how i choose this company and selected over there.

As i started my internship i got some duties assigned there I was inducted as a type
of junior team member where my job and responsibility included filing of income
& GST returns for taxation purpose of various types of Wholesale Business
firms and merchandise at the same time.

Other than work i learnt another various skills and knowledge related:

This internship programme proved to be a valuable opportunity to learn and get

acquainted with real world first hand workplace experience. It proved to be a
valuable platform where we could use the knowledge gained during our classroom
in the practical world through internship programme, I got an opportunity to
expose myself to the working environment and unleash my potential. Skills i learnt
are; doing Team work by maintaining your polite behaviour with your co-workers,
Quality work over Quantity, Work to be done under pressure on specific time; for
example filing GST returns before the due date which i had experienced too. I got
more punctual, focused and discipline through this internship.

As it’s said right by someone when you step out from for work at your workplace
you receive so many personality development as well as communication skills you
got the appropriate way to talk to someone and treat accordingly. And get new
environment to adapt in which increase your adapting power too at any stage of
life.

Moreover i knowledge seeked in accounting outsourcing, Auditing, Income Tax,

GST etc which i was aware about but hadn’t have immense knowledge of it in
applying practically. As I’ve performed 2 activities under the head of CA during
this 5 weeks internship period which were filing the income tax & GST for the
purpose of taxation.
 From that i got to know how we fill the various returns of big businesses in GST
by logging their GST reference id and password. at https://www.gst.gov.in/ and
how to fill various Income Tax returns under the 7 heads of IR 1 to 7 at income tax
official website https://incometaxindia.gov.in/ .
 Table of Contents

Chapter 1- It includes Introductory chapters in which the process of choosing a

company, area you were interested in, brief about the organization worked in and
worked on will be written.

Chapter 2- Introduction to Corporate/company

 Mission & Vision of the company

 Historical background of the group/company.
 Names and Location of group companies.
 Organizational structure, top executives (MD/CEO/GM etc.)
 Turnover and other relevant information, balance sheet of current/last AY

Chapter 3- Internship Experience

1. Department of your work, organization.

2. Role/duties assigned.
3. Linkages to the theoretical parts learnt in classrooms.
4. Value generated/ business generated.
5. Lessons/experience learnt including skills obtained.
6. Pre-placement offer or award of recognition.

Chapter 4- Recommendations and conclusion

 Recommendations, future areas for research.

Chapter 5- References

As per APA: 6 and refer to research papers of the same.

Chapter 6-Annexures

These would be an organizational chart, financial statement, letter of appreciation

received, pictures of relevance to the report, questionnaire used for data collection
etc.

List of Tables and Figures

List of tables S.No.

1. Major Market Customers 17-18
2. Income Tax slabs as per old & 26-27
new Regime
3. GST regime 29

List of figures- 0
 Chapter-1
Introduction
I, Divya choose this Rohit Om Prakash & Co. basically in which Mr. Rohit Om
Prakash who is CA by his profession is the main owner as well as supervisor of his
vey owned company. And me the student of Chitkara University in UG department
under Bachelor of Commerce of 1st year got summer internship2021 in which we
can work as an intern in NGO, or any marketing, sales etc companies as work from
home or remotely. Also we can work under any CA’s privilege and guidance.

So after knowing that we can work under CA’s guidance too. I decided to go ahead
under CA internship. And one of our family friend’s my father’s great friend, who
is Uncle to me his son is CA and handling his company from last 5 years in my
local city Rajpura only. So i communicated and conveyed to Uncle’s son regarding
my college internship and then they asked me about my current studies. They
asked me that how much knowledge i have related to income tax filing of it’s
returns & GST. And I told them threatical portion of income tax and numerical of
GST which we add up and less up (CGST, SGST,IGST) respectively in B/S and
P&L accounts in accountancy which we had learned till now.

After this short interview kind of they assigned me my duties in which i need to
filling the income tax returns of Wholesale Business firms and merchandise also
basic GST Returns of businessman and businesswoman which are GSTR-1 &
GSTR-3B.

But before getting these assigned duties i wondered to do tally on tally’s latest
software Tally ERP9 as I listened alot about tally and was keen to do it in which it
enables us to perform and manage all of the major accounting operations in your
business, such as Booking-keeping of all transactions, including creating and
maintaining invoices. Maintaining bill-wise payment information.

Brief explanation of my work - As i wrote earlier I got the work related to filing
income tax returns and GST returns of Wholesale Business firms and returns of
businesspeople respectively. The number of ITR returns under me was ITR-1to 4.
& ITR-6.

The ITR-1 form is to be filed solely by an individual taxpayer. Any other assesses
liable to pay tax will not be eligible to avail of this form for the purpose of filing
their returns.

The ITR-2 Form is generally used by individuals who have accrued income
through the sale of assets or property as well as individuals who earn income from
countries outside India.

The ITR-3 Form is to be used by a taxpayer who is either an individual or a Hindu

Undivided Family (HUF) who solely operates as a partner in a firm but who do not
conduct any business under the firm or who do not earn any income from the
business conducted by the firm.

The ITR-4 form is to be used by those individuals who conduct a business or who
earn income through a profession. This form is applicable to any type of business,
undertaking or profession, with no limit on the income earned.

The ITR-6 form is to be used only by companies except those companies or

organisations that claim tax exemption as per Section 11. Those organisations that
claim tax exemptions as per Section 11 are organisations wherein the income
received is accumulated from the property used for the purpose of religion or
charity. This particular income tax return form can only be filed online.

On the other hand talking about GST returns

A GST return is a document containing details of all income/sales and/or expense/purchase
which a taxpayer (every GSTIN) is required to file with the tax administrative authorities. This is
used by tax authorities to calculate net tax liability.

Under GST, a registered dealer has to file GST returns that broadly include:
  Purchases
 Sales
 Output GST (On sales)
 Input tax credit (GST paid on purchases)

In the GST regime, any regular business having more than Rs.5 crore as annual aggregate
turnover has to file two monthly returns and one annual return. This amounts to 26 returns in a
year.

The number of GSTR filings vary for quarterly GSTR-1 filers under QRMP scheme. The
number of GSTR filings online for them is 9 in a year, including the GSTR-3B and annual
return. There are separate returns required to be filed by special cases such as composition
dealers whose number of GSTR filings is 5 in a year.

There are total 22 types of GST returns prescribed under the GST Rules Out of them, only 11
GST returns are active, 3 suspended, and 8 view-only in nature. But there are mainly two GST
returns which a businessman/woman having turnover of 5 crore or more annually need to pay
which were assigned to me are GSTR-1 & GSTR-3B.

Filing of e-returns for tax purpose: I have also filled up the forms of e-returns on the website
of Inland Revenue Department, Government of Nepal for World Learning Inc Pvt. Ltd. In order
to know what is filing of e- returns we have to know the provision for payment of tax under
Income Tax Act 2002.

Filing of Estimate Income Tax Returns: Taxpayers who derive or expect to derive any
assessable income from a business or investment shall pay tax for the year by three installments.
Therefore, they are called installment payers. Taxpayers with income solely from employment
are not obliged to pay tax in installments because their tax from employment income is collected
by withholding. Similarly, presumptive taxpayers are also not obliged to pay tax in installments.
Payment of tax by installments is fundamentally different from payment of tax by withholding.
Withholding requires a person’s tax to be paid by a third party, whereas under an installment
system the person pays his or her own tax.

Every installment payer has to submit for the income year ahead an estimate of his tax payable.
For that the estimated tax returns are to be utilized. The submission is due to be made by the date
for payment of the first installment, i.e. it shall be filed together with the first installment. Since
the first estimate has to be submitted after the income 19 year is half, the estimate should include
the actual taxpayer’s facts of the first half of the income year so that there is some thorough basis
for the estimation of the possible profit of the second half of the income year. In this estimate the
following amounts are to be specified:
The assessable income to be derived for the income year from employment, business, and
investment the source of this income the taxable income to be derived for the income year the tax
to become payable calculated without reduction for any medical tax credit

The installments have to be paid as follows:

40 % of the tax as estimated for the current income year less paid tax, i.e. less amounts that have
already been paid by the end of the month Poush 70 % of the tax as estimated for the current
income year less paid tax, i.e. less amounts that have already been paid by the end of the month
Chaitra 100 % of the tax as estimated for the current income year less paid tax, i.e. less amounts
that have already been paid by the end of the month. If the amount of an installment calculated as
above is less than Rs. 2000, the installment is not required to be paid. If at the end of the year a
final tax liability remains to be paid, as, for example, a result of the income tax return filed at the
end of the year the income tax paid by installments is credited against this liability.

Filing of Returns of Income:

In addition to the estimate (during) an income year every taxpayer has to file a return of income
not later than 3 months after the end of each income year. So, the due date of filing annual tax
returns for the income year 2068/69 (2011/12) is as of end 2069 However, a taxpayer may have
this due date extended for a maximum period of 3 months i.e. up to Poush end 2069 in case he
files an application in the IRD with bonafide reasons for such extension.

By contrast to the estimate, this final return is based on the tax facts of the previous year so that
possible misjudgments or wrong estimates are then corrected. Therefore, the taxpayer has, first,
to submit an estimate for the year ahead. Second, as explained 20 above the taxpayer should
scrutinize and adjust this estimate on the occasion of the payments of the second and third
installment. Third, at the end of the income year the taxpayer has to file a tax return based upon
the facts of the previous year.

That leads to an adjustment of the estimates and to a final tax liability. For the income tax return
the respective forms provided by the tax authorities are to be utilized. The income tax return
needs to be signed by the taxpayer or the manager. Furthermore, to be included is a statement
that the return is complete, true and accurate.
 Chapter-2
Introduction to Corporate/company

a) Mission and Vision of the company:

The mission is to provide exceptional financial and professional services while

maintaining the highest levels of integrity and professionalism. To meet the current and
future needs of our clients and help them to cultivate long-term success. To establish
trust and loyalty between staff members, partners, and the firm's clients. Our mission is
always to strive to be front-runners in our profession and be a one stop value additive
service

The mission of Accounting and Financial Reporting done by CA is to provide timely,

comprehensive, and accurate financial reports and analysis, and. maintain a system of
internal accounting and system controls to safeguard University assets and ensure
financial data integrity.

The CA of the company practices were mainly focused around the regulatory
requirements of audit and tax such as Income Tax and GST. The profession and its
practice have gradually evolved from being mere regulatory compliance support to
playing an active role in clients' businesses through broad-ranging support and advisory
functions. We provide management support services that are important ones towards
growing and strengthening our client's business, where we work in tandem with the
owners & management.

Our vision is to offer comprehensive business and tax related services and assist
enterprises to tackle complex situations in the fast changing scenarios of business with
the power of rightful decision making.
 We seek to build strong and lasting relationships with our clients by providing them
quality services which are personalized, reliable and value driven. Commitment to
provide:
 Quality, cost-effective service
 Continuous accessibility
 Sound business advice
 High ethical and professional standards

b) Historical background of the group/company

Rohit Om Prakash & Co. is Punjab based company which was established in June, 2017.
The firm provides auditing, due diligence, account outsourcing, project management and
consulting services. And the company known for providing its service in different fields
like Taxation, Corporate Laws, Foreign Exchange Compliance and SEBI related services
in cooperation.
Overall the company provides complete, reliable and high quality auditing and consulting
services to individuals and institutions, be it manufacturing, trading, tourism, financial,
governmental, non- governmental, medical, hydro power, hotels, and any other sectors as
well.

Mr. Rohit Om Prakash who is an incredible CA has paased out in year 2010 as a
Chartered Accountant from Institute of Chartered Accountants of India (ICAI)
Afterwards he worked under S.Mohan Associates. for almost 7 years. till May, 2017 and
then he planned his own setup to open his Chartered Accountants Office & Co. Namely
Rohit Om Prakash & Co. in Rajpura. at J-6/1, Gobind Colony, Rajpura 140401 (Pb.)

He is providing commendable consulting services from last 4 years in areas of Country

Strategic Papers, Restructuring policies and Internal Control System Development,
Mergers/Demergers, Financial Controller/ Due Diligence Review/Special Review of
various Infrastructure projects on behalf of commercial banks; Forensic Audits, Filling
returns under the head of Income Tax and GST, enterprise risk and financial advisory
services, the Consulting services of company work on the theory of ‘Providing practical
perspectives and solutions to queries’ etc.

The company believes in ‘Good to make it great!’ They believe in ‘helping clients to
become Leaders’. Therefore, a fresh and proactive approach to their accounts and tax
planning has been given to the clients. A very friendly and personal service Innovative
solution to requirements has been provided since the company commenced.
 Building Client Relationships: We seek to earn long-term client loyalty by developing a
deep understanding of each client's business and personal goals, by demonstrating
unwavering reliability and integrity in our work and by acting as an independent and
objective advisor to our clients.

The Company as it stands today owes its very substratum and its unimpeded growth to
the primacy given to these noble objectives which were magnificent obsessions with its
founder Rohit Om Prakash, who ingrained them in the lofty principles of excelling
service to the commercial community rendered with spotless integrity, high efficiency
and a deep sense of commitment, thereby setting a model and great work for those that
followed him.

The history behind Keys to Success of their company is:

The keys points to success of Rohit Om Prakash & Co. Are following-:
 Developing visibility to generate new business leads.
 Relationships with clients (developing loyal, respectful, and intensive contact
with both clients and potential clients).
 Marketing/strategy and networking with other professionals.
 Responsiveness to clients (fast response time for special problems).
 Quality (especially in reporting information).
 Excellence in fulfilling the promise.

c.) Names & Location of group/ companies

The name of the company is Rohit Om Prakash & Co. Chartered
Accountants and the company is located in Rajpura, Punjab at the street of
Gobind Colony, Rajpura 140401. And the work of Wholesale business firms
from different cities has been done.

d.) Products/Services
The major products and services provided by the firm are auditing, due diligence,
account outsourcing, project management and consulting services which are as
follows:

Audit
Auditing is a systematic process of objectively obtaining and evaluating evidence
regarding assertions about economic actions and events to ascertain the degree of
Correspondence between those assertions and established criteria and communicating
The results to interested users. The various types of auditing services provided by the
Organizations are Statutory Audit, Due Diligence Audit, Internal Audit, External Audit,
Financial Audit, Forensic Audit etc. The most common types of audit are briefly
explained below:

Financial Audits: In a financial audit, the assertions about which the auditor
seeks objective evidence relate to the reliability and integrity of financial and,
occasionally, operating information. This type of audit usually covers the basic set
9 of financial statements (Balance Sheet, Income Statement, Statement of Cash
Flows, Statement of Changes in Equity and notes to the financial statements)

Statutory Audit: A legally required review of the accuracy of a company's or

governments’ financial record is what termed as Statutory Audit. The purpose of
statutory audit is same as the purpose of any other audit - to determine whether
an organization is providing a fair and accurate representation of its financial
position by examining information such as bank balances, bookkeeping records
and financial transactions.

Due Diligence Audit: Due Diligence is an extensive look at a company in order

to make the best informed business decision about a company. Due Diligence
Audit is that audit which is carried out in order to find/estimate the actual
financial position of the organization before a large decision is about to take place
like mergers and acquisitions, loan agreement, or when the company's financials
are going to be presented to the public. Due diligence audit includes thorough
investigations of the books and records that can range from asset appraisals to day
to day transactions. A thorough understanding of internal controls and its
effectiveness also become necessary to ensure the risk for the business is as low as
possible.

Internal Audit: Internal audit is an independent, objective assurance and

consulting activity designed to add value and improve an organization's
governance, risk management and management controls over:
efficiency/effectiveness of operations (including safeguarding of assets), the
reliability of financial and management reporting, and compliance with laws and
regulations.

Compliance Audit: A compliance audit determines the extent to which rules,

policies, laws covenants, or governmental regulations are followed by the entity
being audited. For example examination of tax returns of individuals and
companies by the Internal Revenue Department for compliance with the tax laws.
Account Outsourcing:
Outsourcing is gaining popularity as a way to reduce financial and operational risks
by making them easier to manage. Keeping this in mind, the firm provides accounting
services to various organizations. Business organizations can alleviate the burden of
10 staying on top of frequent changes to tax codes and accounting regulations and
provide increased levels of information transparency, visibility of controls and clarity
of accountability by outsourcing of accounting system.

Consultancy and Training

The firm also offers advising and counseling services on matters relating to
accounting system, tax procedures, company establishment, and numerous other
financial matters. The firm provides consultancy services in areas of Country
Strategic Papers, Restructuring policies and Internal Control System Development,
Mergers/Demergers, Financial Controller/ Due Diligence Review/Special Review of
various Infrastructure projects on behalf of commercial banks; Forensic Audits, etc.

e.)Markets

The market for Rohit Om Prakash & Co. is not limited to some particular
type of business or any particular sector. Rather the businesses,
enterprises and institutions whether small, medium or big related to any
sector (Education, Financial Institutions, Trading, Hydro-power,
Hospitals, Hotels, NGOs, INGOs, Business Enterprises, Manufacturing,
etc) whether located inside or outside Punjab are the major markets for
the various services provided by the organization.

The firm has provided consulting and auditing services to major Banks
and Financial Institutions in Nepal including Nepal Rastra Bank (NRB)
and Rural Micro Finance Development Center (RMDC). Firm has also
involved in advisory works, auditing and as a counterpart with local
consultancy and also in the capacity of independent expert for donor
agencies like Danida, UNDP, Action Aid Nepal, ADB, CIDA, etc.
Major Market of Customers

Financial institution Government Other institution

 institution
Nepal Rastra Bank Nepal Water Supply Butwal Power Co. Ltd.
Corp
Global Bank Ltd. Employees Provident Himalya Media Pvt.
Fund Ltd.
Nabil Bank Ltd. Nepal Durgs Ltd. Everest Express
Travels
Rastriya Banijya National Trading Ltd. Rato Bungala School
Bank
Kumari Bank Ltd. Hetauda Cement Siddhartha
Industry Vanasthali
School
Nepal Bank Ltd. National Trust for TEWA
Nature
Conservation
Agriculture Dev. Chilime Hydro Power Soaltee Hotel Ltd.
Bank Ltd. Co.
Citizens Investment Hotel Grand Pvt. Ltd.
Trust
DCBL Bank Ltd Shangri-La Energies
Ltd.
Ace Development Khudi Power Ltd.
Bank
Vibor Development HotelDe, 1 Annapura
Bank Pvt ;Ltd.
Bhaju Ratna Finance Upper Chaku “A”
Co. Hydro Power Project
(22.2 MW)
Professional Dev Lower Modi 1
Bank Hydropower Project
(10.0 MW)
Diyalo Bikash Bank Serving Minds Pvt.
Ltd.
Nepal Clearing House World Learning Inc.
Ltd. Pvt. Ltd.

Nepal Banking Machhapuchhre Herbal

Training Institute Pvt Ltd
Lumbini General DANIDA
 Insurance
Sagarmatha Insurance UNDP
NECO Insurance Ltd. ADBP
Nepal Investment
Bank
Ltd.

f.) Organizational structure, top executives (MD/CEO/GM

etc.)

The firm has around 51 staffs which includes 5 full time chartered accountants
besides 2 partners who are also chartered accountants. Firm has 2 full time ACCAs, 2
MBAs and 36 staff which includes senior managers, CA Finalists, article trainees and
four secretarial staff.

The firm’s organizational structure is more of a functional organization structure. The

two senior partners are in the top most level. There are two junior associates who fall
must below the senior partners. Under junior associates are the senior managers who
command the junior managers and article ships trainees.

The different senior managers are assigned various functions/services offered to the
clients. There is no such thing like departments and division. The whole organization
can be viewed as a single department and the work processes are done through
creation of teams/unit for particular work and service. The senior managers create a
team comprising of junior managers and Articleships/trainees. The size and duration
of team depends upon the nature of service offered and the requirement of the clients.
The orders, command and decisions flows from top to bottom while the reporting is
done through bottom to top.

Tax Management: The firm also helps in tax management for organizations.
Organizations can acquire services like calculation of income tax, management of
Value Added Tax (VAT), Tax Deducted at Source, timely filing and payment of tax
to Inland Revenue Department.

g.)Turnover and other relevant information, balance sheet of

current/last AY.

Since the organization provides auditing and consulting services, it requires high
degree of customer interaction and customization, internal business processes cannot
be automated and the mass production cannot be achieved.

The quality and speed of work not only depends upon the employees’ work
performance but also depends upon
the role played by the customers. Since there are no different departments, there is no
duplication of activities across departments and there arises no questioning on process
alignment.

Since, Rohit Om Prakash & Co. is a private partnership company, all the financial
information and reports are kept strictly confidential and handled by the partners
only. So, financial structure of the organization could not be identified since the
organization denied providing any sorts of financial information.

Chapter-3

Internship Experience

1) Department of your work, organization

The department in which i performed work was of paying Income Tax and GST
Returns. And simultaneously the organization makes the accounting reports of
Wholesale Business Firms, Merchandise specifically. Also pays the monthly,
quarterly income as well as GST returns.The another included work is preparation
of working papers, preparation of preliminary trial balance and financial
statement, filing of e-returns for taxation purpose, Auditing,they provide timely,
comprehensive, and accurate financial reports and analysis, and. maintain a
system of internal accounting and system controls to safeguard University assets
and ensure financial data integrity.

Thus, these activities are the components/part of the organizational activities

which aided in providing services to its clients/customers. And are explained
below:
Audit Working Papers: The doubtful matters/transactions/entries were noted on
the working papers. The entries without supporting documents and evident were
noted down. Similarly, transactions/entries that require thorough checking of its
supporting documents such as memorandum of understanding (MOU), agreement
papers, insurance policies etc were noted for the purpose of reminder for checking
of these supporting in detail later. It was necessary to prepare working papers
while doing vouching.

The audit working papers constitute the link between the auditor’s report and the
client’s records. Documentation refers to working papers prepared or obtained by
the auditor and retained by him in connections with performance of his audit.

The main reasons/purposes for the preparation of working papers are:

 They constitute a permanent record of the objectives and scope of the
audit, as well as the work performed during the audit.
 Work papers organize and coordinate all phases of the audit.
 They contain the back-up material in support of the audit findings,
conclusions, opinions, and comments.
 They contain the basic material from which the audit report is prepared.
 They reflect the quality and reliability of the work performed by the
auditor,substantiate and explain in detail the opinions and findings
presented.

Preparation of Preliminary Trial Balance and Financial Statements:

Preliminary Trial Balance is a summary of the balance of all accounts in the chart
of accounts to, firstly, make sure the books are balanced. Then, these account
balances are used to prepare financial statements such as Profit and Loss Account,
Balance Sheet and Cash Flows Statement.

The trial balance is a worksheet on which all the general ledger accounts with
their debit or credit balance are listed. It is a tool that is used to alert errors in the
books of account. The total debits must equal the total credits. If they don't equal,
there is an error that must be tracked down.

As the name indicates the profit and loss statement (also known as a statement of
financial performance or an income statement) measures the profit or loss of a
business over a specified period. A profit and loss statement summarizes the
income for a period and subtracts the expenses incurred for the same period to
 calculate the profit or loss for the business. It reflects the past performance of the
business and is the report most often used by small business owners to track how
their business is performing.

Balance sheet is a financial statement that summarizes a company's assets,

liabilities, and shareholders' equity at a specific point in time. The balance sheet
gives investors an idea of what the company owns and owes as well as the amount
invested by the shareholders.
The balance sheet follows the formula assets = liabilities + shareholders' equity.
Each of the three segments of the balance sheet has many accounts within it,
documenting the value of each one.

Accounts such as cash, inventory, and property are on the asset side of the balance
sheet, and accounts such as accounts payable and long-term debt fall on the
liability side. Accounts on a balance sheet differ by company and by industry, as
there is no set template that accurately accommodates the differences between
different types of businesses.

Cash Flow Statement is that financial statement which provides aggregate data
regarding all cash inflows a company receives from both its ongoing operations,
financing and external investment sources, as well as all cash outflows that pay
for business activities and investments during a given quarter.

Filing of e-returns for tax purpose- Taxpayers who derive or expect to derive
any assessable income from a business or investment shall pay tax for the year by
three installments. Therefore, they are called installment payers.

Filing of Returns of Income -The taxpayer should scrutinize and adjust this
estimate on the occasion of the payments of the second and third installment.
Third, at the end of the income year the taxpayer has to file a tax return based
upon the facts of the previous year. That leads to an adjustment of the estimates
and to a final tax liability. For the income tax return the respective forms provided
by the tax authorities are to be utilized. The income tax return needs to be signed
by the taxpayer or the manager.

2) Role/duties assigned
 I was inducted as a type of junior team member where my job and responsibility
included filing of income & GST returns for taxation purpose of various types of
Wholesale Business firms and merchandise at the same time.

Both of these activities that I have performed during my internship programme

are the parts of the different services offered by the organization. Thus, these
activities are the components/part of the organizational activities which aided in
providing services to its clients/customers. By filling their Income & GST returns
on time it could be monthly, quarterly and annually.

As if in case the GST returns taxes are not paid on time there is obligation of late
fee and penalties to payer as well as to payee.

Late filing of GST Returns

Return filing is mandatory under GST. Even if there is no transaction, you must
file a nil return. There are few points to note:
 You cannot file a return if you do not file the previous month/quarter’s
return.
 Hence, late filing of GST return will have a cascading effect leading to
heavy fines and penalty.
 The late filing fee of the GSTR-1 is populated in the liability ledger of
GSTR-3B filed immediately after such delay.

Filing of e-returns for tax purpose: I have also filled up the forms of e-returns on
the website of Inland Revenue Department, Government of Nepal for World Learning Inc Pvt.
Ltd. In order to know what is filing of e- returns we have to know the provision for payment of
tax under Income Tax Act 2002.

Filing of Estimate Income Tax Returns: Taxpayers who derive or expect to derive any assessable
income from a business or investment shall pay tax for the year by three installments. Therefore,
they are called installment payers. Taxpayers with income solely from employment are not
obliged to pay tax in installments because their tax from employment income is collected by
withholding.

Similarly, presumptive taxpayers are also not obliged to pay tax in installments. Payment of tax
by installments is fundamentally different from payment of tax by withholding. Withholding
requires a person’s tax to be paid by a third party, whereas under an installment system the
person pays his or her own tax.
Every installment payer has to submit for the income year ahead an estimate of his tax payable.
For that the estimated tax returns are to be utilized. The submission is due to be made by the date
for payment of the first installment, i.e. it shall be filed together with the first installment. Since
the first estimate has to be submitted after the income year is half, the estimate should include
the actual taxpayer’s facts of the first half of the income year so that there is some thorough basis
for the estimation of the possible profit of the second half of the income year.

Filing of Returns of Income: In addition to the estimate (during) an income year

every taxpayer has to file a return of income not later than 3 months after the end of each income
year. . So, the due date of filing annual tax returns for the income year 2068/69 (2011/12) is Asoj
end 2069

However, a taxpayer may have this due date extended for a maximum period of 3 months i.e. up
to Poush end 2069 in case he files an application in the IRD with bonafide reasons for such
extension. By contrast to the estimate, this final return is based on the tax facts of the previous
year so that possible misjudgements or wrong estimates are then corrected.

Therefore, the taxpayer has, first, to submit an estimate for the year ahead. Second, as explained
above the taxpayer should scrutinize and adjust this estimate on the occasion of the payments of
the second and third installment. Third, at the end of the income year the taxpayer has to file a
tax return based upon the facts of the previous year.

That leads to an adjustment of the estimates and to a final tax liability. For the income tax return
the respective forms provided by the tax authorities are to be utilized. The income tax return
needs to be signed by the taxpayer or the manager.

GSTR-1:- GSTR-1 is the return to be furnished for reporting details of all outward supplies of
goods and services made. In other words, it contains the invoices and debit-credit notes raised on
the sales transactions for a tax period. GSTR-1 is to be filed by all normal taxpayers who are
registered under GST, including casual taxable persons.

Any amendments to sales invoices made, even pertaining to previous tax periods, should be
reported in the GSTR-1 return by all the suppliers or sellers.

The filing frequency of GSTR-1 is currently as follows:

(a) Monthly, by 11th* of every month- If the business either has an annual aggregate turnover of
more than Rs.5 crore or has not opted into the QRMP scheme.

(b) Quarterly, by 13th** of the month following every quarter- If the business has opted into the
QRMP scheme.
GSTR-3:- GSTR-3 is again currently a suspended GST return. It was a monthly summary return
for furnishing summarized details of all outward supplies made, inward supplies received and
input tax credit claimed, along with details of the tax liability and taxes paid.

This return would have got auto-generated on the basis of the GSTR-1 and GSTR-2 returns filed.
GSTR-3 is to be filed by all normal taxpayers registered under GST, however, the filing of the
same has been suspended ever since September 2017.

GSTR-3B:- GSTR-3B is a monthly self-declaration to be filed, for furnishing summarised

details of all outward supplies made, input tax credit claimed, tax liability ascertained and taxes
paid.

GSTR-3B is to be filed by all normal taxpayers registered under GST. The sales and input tax
credit details must be reconciled with GSTR-1 and GSTR-2B every tax period before filing
GSTR-3B. GST reconciliation is crucial to identify mismatches in data that may lead to GST
notices in future or suspension of GST registration as well.

The filing frequency of GSTR-3B is currently as follows:

(a) Monthly, 20th* of every month- For taxpayers with an aggregate turnover in the previous
financial year of more than Rs.5 crore or have been otherwise eligible but still opted out of the
QRMP scheme.

(b) Quarterly, 22nd of the month following the quarter for ‘X’** category of States and 24th of
the month following the quarter for ‘Y’** category of States- For the taxpayers with aggregate
turnover equal to or below Rs 5 crore, eligible and remain opted into the QRMP scheme.

3) Linkages to the theoretical parts learnt in classrooms

During my internship period, I found good learning and sharing attitude but also I
got good opportunity of learning as during the work, i learnt about the theoretical
portion which i have been taught earlier from school teachers as well as my
university faculty teachers which includes the following:

Income Tax
Income tax is a direct tax that a government levies on the income of its citizens.
Income does not only mean money earned in the form of salary.
It also includes income from house property, profits from business, gains from
profession (such as bonus), capital gains income, and income from other sources.
 Income Tax is a tax you pay directly to the government basis your income or
profit. Income tax is collected by the Government of India. Income Tax Act of
India was passed in 1961. This +Act governs the provisions for income tax as
well as the various deductions that are applicable to it.

Shares(STT Paid): Time period more than 1 year.

House Property: Time period of more than 2 years.

Equity Mutual Fund: Time Period more than 1year

Types of Income Taxes in India-:

As per the income tax Act, there are 2 types of taxes in India:

Direct Taxes- it is borne and paid directly by the individual on whom it is

imposed such as wealth tax, income tax, and gift tax etc. The taxpayers pay this
tax directly to the government without any involvement of intermediary source.

Indirect taxes- They are levied on goods and services. It is then the responsibility
of the intermediary to pass on the received tax to the government. Unlike a direct
tax, indirect taxes do not depend on the income of an individual.

Income Tax Slab rate applicable for Individuals within 60 years of Age Old
Tax Regime(FY – 2019-2020)

Slabs for Taxable

Applicable Tax Rates & Cess
Income

Within Rs. 2.5 Lakh Nil

From Rs. 2.5 Lakh to 5 Taxable income’s 5%

lakh plus 4% cess on tax

From Rs. 5 Lakh to 10 5% for taxable income between Rs. 2.5 Lakh
Lakh and 5 Lakh

+ 20% on taxable income between Rs. 5 Lakh

 and 10 Lakh

plus 4% cess on tax

5% for taxable income between Rs. 2.5 Lakh

and 5 Lakh

+ 20% on taxable income between Rs. 5 Lakh

Above Rs. 10 Lakh and 10 Lakh

+30% on taxable income above Rs. 10 Lakh

plus 4% cess on tax

Income tax slab rate applicable for New Tax regime – FY 2020-21.

New Regime Income Tax Slab Rates for

Income Tax Slab FY 2020-21
(Applicable for All Individuals & HUF)

Rs 0.0 – Rs 2.5 Lakhs NIL

Rs 2.5 lakhs- Rs 3.00

Lakhs
5% (tax rebate u/s 87a is available)
Rs. 3.00 lakhs – Rs 5.00
Lakhs

Rs. 5.00 lakhs- Rs 7.5

10%
Lakhs

Rs 7.5 lakhs – Rs 10.00

15%
Lakhs

Rs 10.00 lakhs – Rs. 12.50 20%

 New Regime Income Tax Slab Rates for
Income Tax Slab FY 2020-21
(Applicable for All Individuals & HUF)

Lakhs

Rs. 12.5 lakhs- Rs. 15.00

25%
Lakhs

> Rs. 15 Lakhs 30%

Clubbing of Income
It means the Income of other person included in assessee's total income. for example: Income of
husband which is shown to be the income of his wife is clubbed in the income of Husband and is
taxable in the hands of the husband. Under the Income Tax Act a person has to pay taxes on his
income.

As the term suggests, clubbing of income means adding or including the income of another
person (mostly family members) to one’s own income. This is allowed under Section 64 of the
IT Act. However, certain restrictions pertaining to specified person(s) and specified scenarios are
mandated to discourage this practice.

Specified persons to club income :Income of any and every person cannot be clubbed on a
random basis while computing total income of an individual and also not all income of specified
person can be clubbed. As per Section 64, there are only certain specified income of specified
persons which can be clubbed while computing total income of an individual.

Income Tax Returns

Income Tax Return (ITR) is a form which a person is supposed to submit to the Income Tax
Department of India. It contains information about the person's income and the taxes to be paid
on it during the year. There are total 7 number of ITR are there under the head of Income Tax
Department which are ITR-1, ITR-2, ITR-3, ITR-4, ITR-5, ITR-6 & ITR-7

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 29 march 2017. The Act come in to effect on 1 st July
2017, Goods and Services Tax Law in India is a comprehensive, multi-stage , destination base
tax that is levied on every value addition. In simple words ,Goods and Service Tax is an indirect
tax levied on the supply of Goods and services. This law replaced many indirect tax laws that
previously exist in India.

Advantages of GST
GST has mainly removed the cascading effect on the sale of goods and services. Removal of the
cascading effect has impacted the cost of goods. Since the GST regime eliminates the tax on tax,
the cost of goods decreases.

Also, GST is mainly technologically driven. All the activities like registration, return filing,
application for refund and response to notice needs to be done online on the GST portal, which
accelerates the processes.

 Removing the cascading effect of tax

 Higher threshold for GST registration

 Composition schemes for small business

 Simpler online facilities for GST compliance

 Relatively lesser compliances under GST

 Defined treatment for e-commerce activities

 Increased efficiency in logistics

 Regulation the unorganized sectors

Components of GST
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)

In most cases, the tax structure under the new regime will be as follows:

Transaction New Old Regime Revenue Distribution

Regime

Sale within CGST + VAT + Central Revenue will be shared equally between
the State SGST Excise/Service tax the Centre and the State

Sale to IGST Central Sales Tax + There will only be one type of tax
another State Excise/Service Tax (central) in case of inter-state sales. The
Center will then share the IGST revenue
based on the destination of goods.

5.) Lessons/experience learnt including skills obtained

During my internship period of 5 weeks, what I found is that the organization has very
energetic and motivated employees. There are very few senior and junior managers above the
age of 40 while most of the employees are Articleships and training whose age falls between 24
and 30. I found good learning and sharing attitude not only in the young employees but also in
the junior and senior managers. I got good opportunity of learning as during the work, the senior
employees take time to teach their juniors about what is being done and why it is being done. I
feel privileged for such kind of opportunity I obtained.

Senior employees not only teach the juniors but also learn things from juniors and they don’t feel
shy or shamed to learn new things that they were previously unaware of.

There is great opportunity in growth and promotion of employees. As soon as they complete
their final year and become qualified CAs and ACCAs, they get promoted in their job as well as
their remunerations. Employees are not so highly satisfied with their jobs but they are not
dissatisfied as well. I found high employee turnover ratio in the organization because most of the
Articleships and trainees tend to opt for other alternatives after they become qualified chartered
accountants (CAs). Even I personally will advice students to opt for CA and will think about
going in this field.

This internship programme proved to be a valuable opportunity to learn and get acquainted with
real world first hand workplace experience. It proved to be a valuable platform where we could
use the knowledge gained during our classroom in the practical world through internship
programme, I got an opportunity to expose myself to the working environment and unleash my
potential.

Team work: During my internship, I was inducted as a team member and was assigned various
activities that had to be performed in a team. It taught me how activities are to be performed in a
team and impact of behavior of one on the work and performance of the other team member. I
realized what we studied was real. The proper team work lead to synergy benefits. On the
contrary, loafing by some team members could lead to huge negative impacts on the overall team
performance. I learned the importance of team work and some general skills required while
working in a team.

Wherever I was assigned to work, I found the customers there; mostly give priority to the
quick delivery of the required services and reporting rather than the quality of work and reports. I
must say that the delivery performance of the organization is better as they do not cross the
estimated time period and most often the necessary work and reporting is completed before the
prescheduled deadline.

I feel that the quality of the work is good from the perspective of number of times the report gets
checked and verified before the final report is handed over to the customer. Moreover, the
quality of work not only depends upon the employees’ work performance but also depends upon
the role played by the customers. Because of the quality of the work, delivery process and
period, and the degree of customization provided as per the need of the customers, I found high
degree of customer retention.

Based on the customer retention rate and the delivery performance, I came to conclusion that the
customers are fairly satisfied with the services they acquire.

Another important thing I learnt during my internship was about the general taxation system. I
got familiar with various kinds of taxes like Income tax for individuals and corporate
organizations, Value Added Tax (VAT), Tax Deducted at Source (TDS) that are prevalent in the
country. In addition I became aware about the installment method of payment of taxes and filing
of advance tax and tax returns for the same.

Chapter-4
Recommendations and conclusion
Recommendations/Suggestions- 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.
 The local economy continues to be strong and we believe our
typical clients will continue to flourish.
 The partner needs to make the best use of their goodwill to bring
more clientage and reputation to firm.
 The infrastructure and working condition reviews can improve the
working efficiency of the trainees.
 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.
 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 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.
 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.
 The company needs to provide good WI-FI network connection at
every server.
  Developments in technology are changing this market. Rohit Om
Prakash & 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.
 CA Rohit Om Prakash & Co.has many competitors. Under certain
circumstances stiff competition can threaten the margins and
hence the survival of the firm.

Conlusion
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.

 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.

 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.

Rohit Om Prakash & 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.
 Chapter- 5
References
Jindal pvt ltd. Jalendhar, tax facts

Income Tax Returns information from Jasmeet Singh YouTube’s channel and the
video link is mentioned below:

https://youtu.be/f1RkIgf9OmM

GSTR-1 & GSTR-3B returns information from as well as paid on its official
website: https://www.gst.gov.in/

Income Tax Returns content information and paid on its official site:
https://incometaxindia.gov.in/

Other database material from: https://cleartax.in/