InstItute Of ManageMent and

PlannIng & advanced cOMPuter

traInIng (IMPact), Patna

Affiliated To :- ARYABHATTA KNOWLEDGE UNIVERSITY

PROJECT REPORT
ON

“accOunts & fInance”

In partial fulfillment for the award of the degree of

BachelOr Of BusIness adMInIstratIOn

2024

UNDER THE SUPERVISION OF SUBMITTED BY

DR. PRITY KUMARI RANJAN RAJ

Faculty 21302316065
IMPACT College, Patna (2021-2024)
 ACKNOWLEDGEMENT

It is a great opportunity & pleasure for me to express my profound

gratitude to wards all the individuals who directly or indirectly
contributed towards completion of this report.
Working on this report was a great fun, excitement, challenges and a
new exposure in the field of finance. I am greatly in debated to under
whose guidance and concern I am able to bring the report into its real
shape.
I would like to thank our college director sir Mr. Manish Singh,
Principal sir DR. Sachin Bhaskar for their constant guidance to
Conduct the present arduous project.
I wish to express my deep sense of gratitude to my project guide
Mrs. DR. PRITY KUMARI (faculty) for his valuable guidance and
help in Completion of this project work.
I am thankful to Mr. KUMAR ABHISHEK and all faculty members
of Department in providing me useful guidance for the completion of
this report.
I convey my gratitude to all those who are directly or indirectly related
in the completion of this project report.
The internship was a lot more useful than staying at one place
throughout the whole months in my opinion; I have gained lots of
knowledge and experience needed to be successful in a Accounting
field, as in my opinion, being Accountant is after all a challenge.

THANK YOU!

2
 CERTIFICATE OF ORIGINALITY

This is to certify that the project report entitled "Accounts &

Finance, Direct & Indirect Taxation" submitted to
Aryabhatt Knowledge University in partial fulfillment of
requirement of the award of the degree of Bachelor of
Business Administration (BBA) Is an original workout done
by Ranjan Raj and Reg No:-21302316065 under my
guidance.
The matter embodied in the project report is a genuine work
dine by the student and has not been submitted either to this
university or any other university/ institution for the fulfillment
of any course of study.

Guide's Name:-
Mr. Kumar Abhishek
Chartered Accountant

3
 ORGANISATION PROFILE

Name: - ABHISHEK PRAMOD AND CO.

Address:- Beside SBI, Dr. B. Bhattacharya Road, W Patel Nagar Rd,

Patna, Bihar 800023

Phone No:- 09523417740

Email ID:- [email protected]

Service provided to the firm are as follows;

➢ Taxation of Corporate firm.
➢ Income Tax Return
➢ Project Report
➢ CMA Data
➢ Auditing of the Firm’s and Professional People.
➢ All Registration of work are done.

4
5
 CERTIFICATE OF ORIGINALITY

This is to certify that the project report entitled "Accounts &

Finance, Direct & Indirect Taxation" submitted to
Aryabhatt Knowledge University in partial fulfillment of
requirement of the award of the degree of Bachelor of
Business Administration (BBA) Is an original workout done
by Ranjan Raj and Reg No:-21302316065 under my
guidance.
The matter embodied in the project report is a genuine work
dine by the student and has not been submitted either to this
university or any other university/ institution for the fulfillment
of any course of study.

Guide's Name:- Guide's Signature

Dr. Prity Kumari
Faculty
Impact College, Patna

6
 PrOject guIde detaIls

DR. PRITY KUMARI

Visiting Faculty (Impact College)
B.Com(A/C Hons), M.Com and P.hd
(Commerce)

EXPERIENCE:
➢ More than 10 years of teaching experience at various Colleges.
➢ Faculty cum administration
➢ Lecturer at Veer Kunwar Singh University

ACHIEVEMENT:
➢ International Conference on Financial Inclusion and Inclusive
growth (ICFIIG).
➢ 3rd National Conference on Commerce, Economics, Business
Management & Social Science (CEBMSS 2019)
➢ International Conference on Interdisciplinary Research for
Sustainable Development: Innovation & Opportunity.

7
 DECLARATION BY THE STUDENT

Dated: 05-01-2024

This is to certify that the present Summer Internship Report

entitled "Accounts & Finance, Direct & Indirect Taxation" is
my original work. This Summer Internship Report fulfils the
requirement of the "BBA" degree of this University. It does not
form the basis for the award of any degree or diploma from any
other university or institution.

Ranjan Raj (BBA) V Sem.

Reg. No:- 21302316065
Roll No:- 072

8
Accounts & Finance
& Direct & Indirect
Taxation

Ranjan Raj
V
21302316065
2021-2024

9
 EXECUTIVE SUMMARY

This report titled ‘Accounting & Taxation’: An Internship Experience

in Abhishek Pramod & CO. – is written to represent the 208hrs of
internship program done in Abhishek Pramod & CO Chartered
Accountants. This report is a blend of the knowledge of undergrad
program and the experience of practical field. The first part of the
report consists on introduction to internship and its importance
followed by the overview of the project and its details. The second part
of the report contains of organization’s profile of Abhishek Pramod &
CO. And the third part of the report consist on outline of task
undertaken. Then I have discussed about my learning in the whole
internship that is all about the terminologies. I have made it possible to
write each and every thing that I have learnt there. I have all my
practical efforts in the form of this manuscript that’s the asset for my
future career. In last part, I have drawn an overall conclusion and
attached all documents in require to college.

10
 SUMMARY OUTLINE OF TASK
UNDERTAKEN

I have done my internship under CA Kumar Abhishek, Abhishek

Pramod & CO. many things & got deep knowledge about accounting. I
worked there for 8 hours each day i.e. 10 AM to 6:00 PM.

Following is the summary of task performed by me:-

➢ GST WORKING
➢ GST REGISTRATION
➢ INCOME TAX INDIA REGISTRATION
➢ UDIN GENRATE
➢ TALLY ERP 9
➢ COMPANY CREATION
➢ ACCOUNTING
• VOUCHERS
• BANK STATEMENT
➢ E-FILING RETURN PROCESS UNDER GST
➢ MS- EXCEL

11
 Index
1. CHAPTER 1: Introduction…………………………………..12-22
1.1. Introduction of Organization Business Sector……….……..13
1.1.1. About the Industry…………………………………….13
1.1.2. Mission and Vision……………………………………14
1.2. Organizational Structure……………………………………15
1.2.1. Organizational Structure………………………………15
1.2.2. Top 11 CA Firms in India……………………………..16
1.3. Competition Overview (20 Firms)………………………….22
2. CHAPTER 2: Company Profile................................................23-33
2.1. About the Company…………………………………….…..24
2.1.1. Departments of CA Company…………………………25
2.2. Services Offering……………………………………….…..29
2.3. Audit.......................................................................................32
3. CHAPTER 3: Conceptual Discussion…………………………34-80
3.1. Objective of the Study…………………………………..…..35
3.2. Job Description…………………………………………..….37
3.3. Overview of GST..…..………………………………………38
3.3.1. Multi Stage…………………………………………….40
3.3.2. Advantage of GST……………………………………..42
3.4. Income Tax Login………………………………….……...…43
3.5. Process of Generating UDIN………………………………...48
3.6. Overview of Tally ERP 9…………………………………….53
3.7. Accounting…………………………………………………...56
3.8. Bank Statement…………………………………....................58
3.9. E-filing Return process under GS……………………………59
3.10. MS Excel……………………………………………………60
3.11. Preparation of Partnership Deed ……………………………62
3.12. Overview of VAT …………………………………………..66
3.13. Process followed to complete task…………………………..71
3.14. Overview of Taxation……………………………………….73
3.14.1. Direct Tax……………………………………………..74
3.14.2. Indirect Tax……………………………………………80

12
4. CHAPTER 4: Learning, Conclusion & Suggestions…………81-89
5.1. Learning Outcomes………………………………………….82
5.2. Behavioral Learning From Organization……………………83
5.3. Practices Observed in organization………………………….85
5.4. Suggestions and Recommendations…………………………86
5.5. Limitations…………………………………………………...88
5.6. Conclusion…………………………………………………...89
5. CHAPTER 5: Bibliography……………………………………90-91
6.1. References...............................................................................91
Thank You…………………………….……………………………92

13
 CHAPTER 1
INTRODUCTION

14
 INTRODUCTION OF THE
ORGANIZATION'S BUSINESS SECTORS

About The Industry

Organization is working as Chartered Accountants firm under the rules

and regulations and code of ethics designed for CA firms by ICAI (The
Institute of Chartered Accountants of India).

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

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

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

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

These kinds of firms provide different kinds of professional services

like audit, taxation and management consultancy to its clients.
The Chartered Accountancy course is conducted by the Institute of
Chartered Accountants of India, which has its headquarters in New
Delhi, 5 regional offices (Calcutta, Kanpur, Chennai, Mumbai and New
Delhi) and 81 branches under these regional centers.

15
 MISSION & VISION

Mission of ICAI

Is to achieve excellence in professional competence, add value to

businesses and economy, safeguard public interest; ensure ethical
practices and good corporate governance while recognizing the needs
of globalization.

Vision of ICAI

The profession of Chartered Accountants in India should be the

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

16
 ORGANISATIONAL STRUCTURE
A hierarchy is an arrangement of items (objects, names, values,
categories, etc.) in which the items are represented as being "above,"
"below," or "at the same level as" one another and with only one
"neighbour" above and below each level. These classifications are
made with regard to rank, importance, seniority, power status, or
authority. A hierarchy of power is called a power structure. Following
is the organizational hierarchy of the firm:-

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

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

Managers are inquired of by Senior Managers and mostly manager

manage audit field works etc. and after field work managers with
cooperation of senior managers makes and finalize any audit report to
be issued. Senior Manager is a qualified Chartered accountant having
more than 10 year working experience.
Field work and information collection and implementation of policies
by adopting changes in rules & regulations is the main responsibility of
supervisors and trainees. They use different kind of techniques for error
and fraud detection.
17
 Top 11 CA firms in India

1. Deloitte:-
Deloitte, in terms of Revenue, is the largest professional services
network in the world. Also on the basis of a number of professionals, it
is the largest professional services network in the world.
Deloitte is known for providing audit, tax, consulting, enterprise risk
and financial advisory services to more than 200,000 professionals in
over 150 countries. They are the Advisors to many of the World's most
admired Brands.
The Consulting services of industries work on the theory of 'Providing
practical perspectives and solutions to queries.' Deloitte believes in
'Good to make it great!' They believe in helping clients to become
Leaders'.

2. PWC:-
Price Waterhouse Coopers has been the world's second largest
professional services network in terms of Revenue as surveyed in 2014
and is one of the Big Four Auditors and stands neck to neck with
Deloitte, EY and KPMG.
The Firm believes in helping resolve complex issues and identifies
opportunities. People from all backgrounds such as arts, business,
economics, engineering, finance, health, information technology, law
and more are entertained.

18
3. KPMG:-

Having its global headquarters in Amstelveen, Netherlands, KPMG has

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

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

4. Ernst & Young: -

Ernst & Young abbreviated as EY is a multinational professional

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

19
5. BDO International: -
BDO International stands at the fifth rank for providing the largest
accountancy network in the world.
It is a worldwide professional services network and one of the best
public accountancy firms. It has its competency is in serving national
and international clients.
Following a survey conducted in 2014, September, BDO has its
Member Firms in 151 countries and takes pride in employing around
60,000 Partners and staff in 1,328 offices throughout the world.

6. Grant Thornton International: -

Grant Thornton is a UK based firm which has its branches in almost
125 countries. This firm is known for generating very high revenue
which is more than 4.5 billion dollars.
It is providing services in assurance, tax and advisory firms. Grant
Thornton is also known for providing services in Assurance and
Taxation and other consultancy services relating the financial matters.
It has been operating for 100 years. Grant Thornton has provided
valued service to organizations with the potential to grow and to
operate 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.

20
7. RSM International: -
RSM ranks the 7th largest among the professional services network for
audit, tax and advisory firms. It takes pride in holding the 6th rank as
the largest global provider of tax services in the world.
It has its fully independent member firms and correspondents in 111
countries surveyed, September 2014. The member firms of RSM
International have a combined total of 35,396 staff which includes
3,221 partners in 718 offices.

Three of the original member firms of the organization are Robson

Rhodes (UK), Salustro Reydel (France) and RSM
McGladrey/McGladrey & Pullen (USA).

8. SS Kothari, Mehta & Co.: -

The best thing about this Firm is that it has over 55 years in existence.
SS Kothari has been one of the highly reputed firms in Delhi and has
its branches in 100 other countries.
It has created a strong National presence through a network creation of
6 offices and 20 associates which covers almost all the regions of the
Country. With a combination of Partners and Associates, it has covered
almost all the parts of the country.
It offers services in BPO, Tax Advisory Services, Merger and
Acquisition, Statutory Audit Services, Corporate Laws and other
different areas.

21
9. Lodha & Co.: -

This is also a vintage firm set up in 1941 and has its offices all over
India. They operate in locations like Kolkata (Calcutta), Chennai
(Madras), Hyderabad, Mumbai (Bombay), New Delhi and Jaipur.
Lodha & Co. has proficiency in providing professional services to a
large number of corporate clients, central banks, banks, insurance
companies, public sector corporations etc. They operate both in India
and Internationally.

10. Sahni Natrajan & Bahl (SNB): -

SNB is a national Indian firm which is based in Delhi and provides its
services in the field of audit, consulting, accounting and allied areas. It
was established in 1981 and is one of the leading Firms in India having
its Headquarters in New Delhi and branch offices in Bangalore and
Mumbai.
The Firm has kept its Aim for providing services of the highest quality,
resulting in the addition of value to each of its clients in a totally
professional, independent and ethical manner.
It is known for providing services in various areas like Taxation,
Auditing and Internal Audit, Corporate Laws and several other services
relating to services.

22
11. Luthra & Luthra: -

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

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

The success of Firms depends on its Professional, thus the Firm focuses
on training its employees such that they could find solutions to the
various needs and queries of its clients and thus, achieving the
Organizational goals. It has its branches in Delhi, Mumbai, Bangalore,
Chennai and Noida.

This firm is known for providing its service in different fields like
Taxation, Corporate Laws, Foreign Exchange Compliance and SEBI
related services in cooperation with 18 highly qualified personnel.

23
24
 CHAPTER 2
COMPANY PROFILE

25
 ABOUT THE COMPANY

ABHISHEK PRAMOD & CO. is a leading chartered accountancy

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

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

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

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

26
 DEPARTMENTS OF CA COMPANY

Abhishek Pramod & Co. is having its head office in Patna. All the
offices constitute different number of departments who basically
handle their respective functions. The major departments include:

Audit and Assurance Department: -

Firm provides audit and assurance services to wide range of clients

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

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

value to their business through identification of existing and potential
control risks and suggesting best possible measures in the given
circumstances. Firm always places priority to deploying audit teams to
clients who are well equipped with the specific industry knowledge,
experience and are professionally sound.

27
➤ Tax and Corporate Department: -

Firm delivers taxation services to clients and assists them in obtaining

optimal tax benefits available under the laws. Firm also assist clients to
comply with the tax rules and regulations and always keep them
updated with the latest developments and amendments. Tax personnel
are qualified professionals, experienced and knowledgeable. We
maintain a comprehensive tax library which always provides ready
references and timely solution in complex situations. Firm provides a
comprehensive range of tax services which includes:
• Preparation and submission of annual tax returns.
• Compliance services.
• Tax advisory services.
• Representation and litigation with tax authorities.
• Personal income tax services.
In Abhishek Pramod & Co. same staff is handling with tax matters as
well as corporate sector. While in corporate firm provides different
kinds of services relating to corporate sector from incorporation to
winding up of a Company.

➤Computer Department: -

Department handles the computer related matters and assists other

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

28
➤Correspondence Department: -

It handles with all the correspondence of the firm by sending the

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

➤HR Department: -

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

of the firm and this department presents the timely reports on effective
utilization of the resources by the firm. A purpose of the human
resource is to keep the trained employees and recruit new energetic
staff to work. Another purpose of this department is to provide a good
working environment for staff and try to make by facilitating them and
arranging some recreational activities for them. HR knows the real
worth of its employees so cares for them and motivate them to work
more efficiently and diligently.
The hierarchy adopted by Abhishek Pramod & Co. is in accordance
with the legal structure a CA firm shall have. Although the ICAI rules
permit of not having the supervisors and does not make it mandatory
having senior manager and manager, yet this goes as additional benefit
for the firm of having such an extensive hierarchy.

29
 CORPORATE SERVICES

➤ Incorporation of company

➤ Consultancy on Company Law matters.

➤ Advisory Planning for Mergers, Acquisitions, De-mergers, and

Corporate re-organizations.

➤ Filing of annual returns and various forms, documents.

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

➤ Secretarial Matters including share transfers

➤ Maintenance of Statutory records

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

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

30
 SERVICES OFFERING

➤ Company Registration: -
The most common business composition is to register a Pvt. Ltd.
Company. Company registration will enable limiting the person
liability of promoters to the extent of paid up capital. Promoters have to
get DIN & check availability of the company name.

➤ One Person Company: -

Register one-person company (u/s 2 (62) of Companies Act 2013) for
quick start of your business within reasonable fees by experienced CA
firms.

➤ LLP Registration: -
Limited Liability Partnership (LLP) has benefit of the company
registration & easiness of partnership. It is apt for small businesses.
Experienced CA firms can ease out the process within reasonable fees.

➤ GST Registration: -
GST registration of business is to enable selling of goods with turnover
value beyond a certain limit. Limit may differ from state to state. It is
necessary to get GST Input Tax Credit. Experienced CA firms can ease
out the process within reasonable fees.

➤ Project Financing: -
Companies need funds to grow their business. Experienced CA can
prepare project report for loan financing to ensure that you get best
eligible amount in the shortest time. Generally, fees are charged as
percentage of financed amount.

31
➤ ROC Filing: -
Periodic returns/forms need to be submitted to Registrar of Companies
(ROC) for company's act compliance. Experienced CA firms can file
timely & correct ROC filing in reasonable overall cost.

➤ GST Return: -
GST returns to be filed on periodic basis by business to provide
information about value of turnover & total GST liability & mode of
payment. Frequency may differ from state to state. Delays will attract
penalty. Experienced CA firms can ensure compliance with reasonable
fees.

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

➤ Income Tax (Salaried): -

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

➤ Income Tax (Business): -

Income Tax returns filing is requirement of Income Tax Act for
companies/businesses. Tax Audit Report helps in compliance of income
tax laws. Experienced CA firms can help in reducing non- compliance
of income tax laws.

32
➤Tally Accounting: -

Tally is most used accounting software. Small and medium sized

business can take services from CA firms who can allocate accountants
to handle accounting for your business.

➤Statutory Audit: -

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

➤ Tax Audit: -

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

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

➤ Internal Audit: -

Internal Audit & Internal Financial Control Testing is needed as per

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

33
 AUDIT

Broadly, Audit involves the following:

➢ In-depth study of existing systems, procedures and controls for
proper understanding. Suggestions for improvement and
strengthening.
➢ Ensuring compliance with policies, procedures and statutes.
➢ Comprehensive review to ensure that the accounts are prepared in
accordance with Generally Accepted Accounting Policies and
applicable Accounting Standards/IFRS.
➢ Checking the genuineness of the expenses booked in accounts.
➢ Reporting inefficiencies at any operational level.
➢ Detection and prevention of leakages of income and suggesting
corrective measures to prevent recurrence.
➢ Certification of the books of account being in agreement with the
Balance Sheet and Profit and Loss Account.
➢ Issue of Audit Reports under various laws.

➤ Auditing Standards
The Public Company Accounting Oversight Board (PCAOB) maintains
external auditing standards for public companies (issuers) registered
with the Securities and Exchange Commission (SEC).
As of 2012, PCAOB has 15 permanent standards approved by the SEC
and a number of interim standards that reflect generally accepted
auditing standards, as described in standards issued by the Auditing
Standards Board (ASB), which is part of the American Institute of
CPAs (AICPA).
The ASB also issues Statements on Auditing Standards (SASs) that
apply to preparing and releasing audit reports for non-issuers
(companies not required to register with the SEC). AICPA members
who audit a non-issuer are required by the AICPA Code of Professional
Conduct to comply with these standards. As of 2012, there are more
than 60 active standards.

34
➤ Audit Planning

Audit planning includes deciding on the overall audit strategy and

developing an audit plan.

Auditing Standard No. 9 from the PCAOB describes an external

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

For internal auditing, the Institute of Internal Auditors provides

guidance for audit planning. Planning starts with determining the
scope and objectives of the audit.
Internal auditors need to understand the business, operations, and
unique characteristics of the department/unit being audited and to
develop an audit plan that defines the procedures needed to do an
efficient and effective audit.

Types of Audits conducted: -

➤ Statutory Audit of Companies.

➤ Tax Audit under Section 44AB of the Income Tax Act, 1961.
➤ Audit under other sections of the Income Tax Act, 1961 such as
80HHC, 80-IA, etc.
➤ Concurrent Audits.
➤ Revenue Audit of Banks.
➤ Branch Audits of Banks.
➤ Audit of PF Trusts, Charitable Trusts, Schools, etc.
➤ Audit of Co-operative Societies.
➤ Information System Audit.
➤ Internal Audits.

35
 CHAPTER 3
CONCEPTUAL DISCUSSION

36
 OBJECTIVES OF STUDY

I choose to work with Abhishek Pramod & Co. During this internship I
have learnt many new skills. Before internship I have only theoretical
knowledge about work in organization but now I have practical some
practical experience of working in organization. Now I have
knowledge about the organization's working environment and how
organizations work and achieve their goals and objectives.

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

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

➢ To improve communication skills.

➢ To analyze the business situation.
➢ To establish high standard in professionalism.
➢ To learn more than the theoretical knowledge.
➢ To learn book keeping practices of different companies.
➢ To apply the theoretical knowledge in actual organization.
➢ To compare practical aspects with theoretical aspects.
➢ To make quick decision in real situations.
➢ To learn how to promote and to conduct research in business
areas.
➢ To enhance my personal knowledge and professional preparation
for future.
➢ To properly integrate my theoretical knowledge and practical
work.
➢ To plan for the future of oneself and learn how to adjust in an
organization.
➢ To know how to present your recommendations in front of your
boss.

37
➢ 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.
➢ Assist the student development of employer-valued skills such as
teamwork, strong communication and attention in details.
➢ Expose student to the environment & expectations of
performance on part of accountants in professional accounting
practices
➢ Enhance & expand the student's knowledge of particular areas of
accounting.
➢ Expose the students to professional role models or mentors who
will provide the student with support in the early stages of the
internship & provide an example of behaviour expected in the
internship workplace.
➢ Expand networks of professionals' relationship & contacts.
➢ Develop a solid work ethic & professional demeanour as well as
commitment to ethical conduct & social responsibility.
➢ Develop time management skills and the ability to be responsible
for more than one project at a time.
➢ Develop organizational skills to complete the project in a timely
manner.

38
 JOB DESCRIPTION

I have tried my best to enhance my abilities and apply the knowledge

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

Different task that I performed during my internship:

➢ Vouching
➢ Preparing books of accounts in tally
➢ Voucher Entry
➢ Preparing Data in Excel Sheet
➢ Preparing Partnership Deed
➢ Intangible Assets
➢ Prepare Projected and other Balance Sheet
➢ Auditing
➢ Taxation
➢ Theoretical learning of different type of Taxation and GST
➢ Maintenance of accounts/ book keeping.
➢ TDS return preparation.

Software used during internship:

➤ MS office

➤ Tally software

39
 GST:-

Every registered person paying GST is required to furnish an electronic

return every calendar month. A “Tax Return” is a document that
showcases the income of a registered taxpayer. Such a document needs
to be filed with the tax authorities in order to pay tax to the
government. The tax to be paid by a registered dealer depends upon the
income declared by such a person in the tax return filed with the tax
authorities. Under the initial GST Return filing procedure, the different
types of GST returns demanded the taxpayer to disclose the following
details:

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

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

GST is one indirect tax for the entire country.

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

40
Outward Supplies (Sales)
Inward Supplies (Purchases)
GST On Output GST on Input (Input Tax Credit)
Other Particulars (As May be Prescribed in the Document)

However, the current system of GST Return filing requires a taxpayer

to update outward supplies information in GSTR 1. And then file a
summary return in GSTR 3B. All the other forms like GSTR 2 and
GSTR 3 have been suspended for the time being.

As mentioned above, from April 1, 2019, the incumbent government is

planning to implement the new GST Return design. This simplified
version of return would require the taxpayers having an annual
turnover of over Rs 5 Crores to file one monthly return only. Thus,
small business owners, having an annual turnover of upto Rs 5 Crores
would have the option to file quarterly return.

41
Multi-stage

There are multiple change-of-hands an item goes through along its

supply chain: from manufacture to final sale to the consumer.

Let us consider the following case:

▪ Purchase of raw materials
▪ Production or manufacture
▪ Warehousing of finished goods
▪ Sale to wholesaler
▪ Sale of the product to the retailer
▪ Sale to the end consumer

42
Value Addition

The manufacturer who makes biscuits buys flour, sugar and other
material. The value of the inputs increases when the sugar and flour are
mixed and baked into biscuits.
The manufacturer then sells the biscuits to the warehousing agent who
packs large quantities of biscuits and labels it. That is another addition
of value after which the warehouse sells it to the retailer.
The retailer packages the biscuits in smaller quantities and invests in
the marketing of the biscuits thus increasing its value.
GST is levied on these value additions i.e. the monetary value added at
each stage to achieve the final sale to the end customer.

Destination Based

Consider goods manufactured in Maharashtra and are sold to the final

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

43
➤ Advantages of GST
GST has mainly removed the Cascading effect on the sale of goods and
services. Removal of cascading effect has impacted the cost of goods.
Since the GST regime eliminates the tax on tax, the cost of goods
decreases. GST is also mainly technologically driven. All activities like
registration, return filing, application for refund and response to notice
needs to be done online on the GST Portal; this accelerates the
processes.

Components of GST
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)

44
1. Income Tax Login: IT Department Efiling Login
Step 1: Visit the income tax department homepage
To access the Indian income tax login page, visit the homepage of
government portal. Here, you will see a box on the right side that has a
Login Here’ button for registered users.

Step 2: Enter the Details

Once you have clicked on that button, you will be taken to the login
page where you have to enter your income tax login username and
password. Please note, for Income Tax Login, the User ID is your PAN
Card Number.

45
3. Step-by-Step Process on Registering on the Income Tax
Department Website
Step 1: Visit the income tax department portal
On the homepage of the government portal, click on ‘Register
Yourself’ on the right hand side of the page.

Step 2: Select the User Type

Once you have clicked on that button, you will be taken to a
registration form that will ask you to select your user type.

46
Step 3: Enter the Basic Details

Step 4: Fill in the Registration Form

The following details in the registration form are mandatory:
➢ Password details
➢ Contact details
➢ Current address

47
After correctly entering all the details, click on submit.

48
Step 5: Verification
On submitting the duly filled form, a six digit One Time Password
(OTP) is sent to your mobile number and the email ID provided. Enter
this OTP correctly to successfully verify the details. Please note that in
case of non-residents the OTP is only sent on the registered email
address. The OTP will expire after 24 hours from the actual time of
receipt. In case one fails to complete the registration process within the
given 24 hours, the entire registration must be initiated again.

49
2: PROCESS OF GENERATING UDIN

STEP-1
• Go to the website: https://udin.icai.org
• Login through “Member Login” option given on the portal by
providing 6 digits membership no. in username and relevant password
in password option.

STEP-2
• After Logging in the Member has to click on Generate UDIN.

50
STEP-3
• After clicking on Generate UDIN, following details will be auto-
populated;
a. Membership registration number
b. Member name
c. E-mail ID
• After that select the “Document Type” for generation of UDIN W.R.T.
a. Certificates – Applicable from 1st February, 2019
b. GST and tax Audit – Applicable from 1st April, 2019
c. Audit and Assurance Functions – Applicable from 1st July, 2019

STEP-4
• IN CASE WHERE “CERTIFICATES” OPTION SELECTED IN
DOCUMENT TYPE
a. Select the relevant “Type of Certificate” from the drop down list
available with the below options:
1. Additional Certification by Concurrent Auditors not forming part
of concurrent audit assignment
51
2. Capital Contribution Certificate/net worth certificate
3. Certificate issued by Statutory Auditors of Banks
4. Certificate issued by Statutory Auditors of Insurance Companies
5. Certificate issued for KYC purpose to banks confirming sole
proprietorship
6. Certificate issued under RERA
7. Certificate of Liquid Asset U/S 45-IB of RBI Act, 1945
8. Certificate of physical verification of securities issued by
Concurrent Auditors of Treasury Department of Banks Certificate
of Short Sale of securities issued by Concurrent Auditors of
Treasury Department of Banks
9. Certificate Regarding Sources of Income
10. Certificates for Claiming Deductions and Exemptions under
various Rules and Regulations
11. Certificates for Funds/ Grants utilisation Charitable
Trust/Institution
12. Certificates for Funds/ Grants for NGO’s Certificates for Funds/
Grants utilisation for Statutory Authority
13. Certificates for Funds/ Grants utilisation under
FERA/FEMA/Other Laws
14. Certificates in form 15CB
15. Certificates in relation to initial Public Issue/compliances under
ICDR and LODR.
16. Certificates issued on basis of Statutory Records under
Companies Act, 2013 & applicable provisions
17. Certificates issued under LLP Act
18. Certification for claim of refund other Indirect Taxes
19. Certification for claim of refund under GST
20. Certification of arms length price u/s 92 of the Income Tax Act,
1961.
21. Certification of Fair Values of Shares of Company for Buy Back
22. Certification of Fair Values of Shares of Company for the scope
of merger / demerger
23. Certification of Fair Values of Shares of Company for transfer of
shares from resident to non-resident
24. Certification of Fair Values of Shares of Company for Allotment
of further shares
25. Certification under Exchange Control legislation

52
 26. Certification under the Income-Tax Laws for various Deductions
etc.
27. Net worth Certificates for Bank finances
28. Net worth Certificates for Bank Guarantee
29. Net worth Certificates for Student Study Loan
30. Net worth Certificates for Visa by Foreign Embassy
31. RBI Statutory Auditor Certificate for NBFCs
32. Turnover Certificate

33. Working Capital Certificate/Net Working Capital Certificate

34. Others
b. Select the relevant date for signing the document from “Date of
Signing of Document” option.
c. Enter the relevant “Figures/Values” in the format described below:
1* Particulars Figures

2* Particulars Figures

Note: Two Financial Figures are mandatory out of 3 (three) given

fields. In case, there is no Financial Figure in the Certificate, Zero
(0) is to be mentioned in Financial Figure and in its Particulars
mention “There is no Financial Figure in Certificate”.
d. After that provide the description of nature of certificate in
“Documents Description”
e. Click on “Send OTP” button, which enables the system to send
OTP on the registered mobile no. and email of the member.
f. After that provide the OTP received on the registered mobile no. and
then Click the submit button.
g. After clicking the submit button, System will generate the 18 digits
UDIN.

53
• Enter the OTP and submit.
• UDIN generated.

54
 TALLY ERP 9

Tally is one of the most commonly used accounting software. Getting a good grip
on it will help CA professionals a lot. It is used for various purposes like
performing basic accounting functions, managing payrolls, inventory
management, maintaining cash inflows and outflows, filing tax returns, preparing
balance sheets, managing profit and loss statements, budget scenario management,
synchronizing and managing data from different locations, etc.

COMPANY CREATION

Introduction to company creation

The first and foremost thing to do when we start accounting with tally is to know
how to create a company in Tally ERP 9. If you are operating multiple businesses,
you can create several companies in Tally.ERP 9 software at a single cost.
Tally.ERP 9 has outgrown from the concept of just accounting software to
managing statutory compliance by updating statutory files available at Tally
solution website. Today one can operate Tally remotely using Tally.net features,
process payroll and many more features are updating regularly by Tally solutions.
The most recent improvement is GST) with compatibility from version Tally.ERP
9 release 6.

How to create a company in Tally.ERP 9?

To create a company in Tally.ERP 9,

Steps Actions Instructions to be followed

Step 1 To open Tally Software Double click on tally icon from your desktop.

Step 2 To go to Create Company Screen To do this Select Create company from

the Company Info. Menu using up and Page 9 of 25 down arrow key and press
Enter Key.

Step 3 To fill up the Details in Company Creation Screen In this company

creation screen, you should enter all the details of the company that you been
asked for

55
Details to be filled in company creation
A. Name
In this field, we are required to type the name of the company, for
example. XYZ INC.
Primary mailing details
• Mailing name
In this field, we are required to type the name of the company, for
example. XYZ INC.
• Address In this data field, we are required to enter the address of the
company.
• Country
Here we are required to select the country from the list in which the
business Operates.
• State
In this data field, we have to select the state in which we would comply
with statutory laws
• Pincode
Pincode of the location where the office exists.

B. Contact details
• Phone no Enter the Company contact number which we would like
to display on Invoices

56
• Mobile no
Enter the Contact number of Managing Person to whom any queries
related to Invoicing or Delivery of product, complaint in the product
could be reached to
• Fax No
Enter the Fax number to which any confirmation statements, ledger
copies etc., could be sent and received
• E-mail
Enter the company’s email address to which any product inquiry and
other communications could be made.
• Website
Enter the company’s web address if any
C.Books and financial year details
• Financial year begins from
In this data field, you have to type the financial year in which you want
to create a company. Suppose you may be starting company on
December 01 2018, you should enter the financial year from as
01.04.2018.
• Book beginning from
In this data field, you have to type the financial year in which you want
to create a company. Suppose you may be starting company on
December 01 2018, you should enter the financial year from as
01.04.2018.
Starting in the middle of the financial year.
Companies which are migrating from Manual Accounting to Tally ERP
9 in the middle of the financial year.

57
 ACCOUNTING
1.Accounting Vouchers in Tally

➢ Sales Voucher
➢ Purchase Voucher
➢ Payment Voucher
➢ Receipt Voucher
➢ Contra Voucher
➢ Journal Voucher
➢ Credit Note Voucher
➢ Debit Note Voucher

➢ Sales Voucher

Sales voucher is one of the most used accounting vouchers in Tally. Users can
create this voucher in two different formats; as an invoice, or as a voucher. The
invoice format enables users to print a copy of invoices for customers. The
voucher format can be used to store transactional records electronically and it
doesn’t need a paper copy for the customer.

➢ Purchase Voucher
Like sales vouchers, purchase voucher belongs to the accounting category and is
available in both invoice and voucher formats. Editing and modifying receipt
entries in Tally are easy, as its voucher format helps accountants to do so quickly.
Moreover, Tally also helps in converting a purchase voucher in the invoice format
to the voucher format.

➢ Payment Voucher
The payment voucher is another accounting voucher in Tally that helps create and
print cheques against the order. Once the payment voucher gets passed, the
corresponding cheque can be printed by clicking on ‘banking’ and then on
‘cheque printing’.

➢ Receipt Voucher

When accountants make a receipt voucher in Tally, all the invoices which have
pending payments pop up as a reminder. As soon as the client makes the payment
through any mode, the receipt can be updated with the payment method details.
In addition, all the details of this receipt can be sent to the customer. Thus, receipt
vouchers make payment monitoring easy.

58
➢ Contra Voucher
Contra vouchers are used to withdraw or deposit money in banks with the help of
instruments such as cheques/ATM/DD or e-transfer to another account through
NEFT/IMPS. With the help of contra vouchers in Tally, accountants can also
generate deposit slips for recordkeeping.

Tally also provides exact currency denominations to monitor and print the deposit
slip while also depositing the amount.

➢ Journal Voucher
Unlike other vouchers, a journal voucher in Tally can come under the roof of both
accounting and inventory vouchers. There are multiple uses of a journal voucher
in Tally depending on the type of business it is being used for.

It can be found as an optional voucher in Tally to make sales and purchase by

accountants. Professionals can also use it for the adjustment or transferring of
stock from one warehouse to the other.

➢ Credit Note Voucher

Credit note voucher in Tally has to be enabled manually. It is usually enabled by

pressing F11 and they manually configuring its features. Credit note can also be
passed by checking the original invoice. When a client is selected, Tally shows
the transaction invoice history that have been raised.

➢ Debit Note Voucher

Debit note voucher is one of the most-used types of Voucher in Tally ERP 9, that
is used for managing purchase returns. With the help of this, accountants can
generate a debit note for invoicing as well as a voucher.
Like credit note voucher in Tally, debit note too can easily be configured by
pressing F11 and configuring it manually.

59
 Bank Statement

Process No 1 –

Create a ledger under bank accounts and then save the same. Process No 2

Go to the accounting vouchers menu and then we need to select what kind of
voucher do we need to pass using the bank account. One can use 3 voucher type
to pass a bank Entry in Tally.ERP 9

➢ Payment –
To make payment entry. Debit the Expenses Ledger (for cash transactions)/Party
Ledger (for non-cash transactions) and Credit the Bank. The short cut key to
Select Payment Voucher is F5.

➢ Receipt –
To make receipt entry. Debit the Bank Ledger and Credit the Party Ledger (for
cash transactions) / Income ledger (for non-cash transactions). The shortcut key
to Select Receipt Voucher is F6.

➢ Contra –
Use for the only cash transaction. Debit / Credit Bank /Cash. The Short cut key to
Select Contra Voucher is F4.

60
 E-FILING RETURN PROCESS UNDER GST

10 Steps to file GST Return Online

1. Make sure that you are registered under GST and have the 15-digit
identification number with your based on your state code and PAN.
In case you do not have this number, first registered online to get it.
2. Next visit the GST portal.
3. Click on the services button.
4. Click on returns dashboard and then from the drop-down menu, fill
in the financial year and the return filing period.
5. Now select the return you want to file and click on prepare online.
6. Enter all the required values including the amount and late fee, if
applicable.
7. Once you have filled in all the details, click on save and you will see
a success message displayed on your screen.
8. Now click on submit at the bottom of the page to file the return.
9. Once the status of your return changes to submitted, scroll down and
click on the Payment on tax tile. Then, click on Check Balance to
view cash and credit balance, so that you know these details before
paying tax for respective minor heads. Next, to clear your liabilities,
you need to mention the amount of credit you want to use from the
credit already available. Then click on Offset liability to make the
payment. When a confirmation is displayed, click on OK.
10. Lastly, check the box against the declaration and select an authorised
signatory from the drop-down list. Now click on File form with DSC
or File form with EVC and then click on Proceed. Make the payment
in the next step for your respective GST.

61
 MS-EXCEL

For CA professionals, learning about the Microsoft Excel spreadsheet

software is necessary.
Excel is designed for recording and analyzing numbers/data, and
mastering it can help CAs in a number of ways. They should know how
to use Excel for analytics, accounting, financial management,
calculating taxes, formulas, and other purposes.

1. Filling and formatting Excel has the ability to auto-fill cells and add
special formatting to cell batches more easily than ever. Learn the
shortcut keys and pay attention to Excel’s new automation features to
accelerate your work rate in the platform immensely. For instance,
holding Ctrl + Shift with the numerals below allows you to quickly
apply common formats to large amounts of data:

➢ + 1 - Format numbers with two decimal places

➢ + 2 - Format cells as time
➢ + 3 - Format cells as date
➢ + 4 - Format cells as currency
➢ + 5 - Format cells as a percentage
➢ Ctrl + Shift + 6 - Format cells in exponential or scientific form

2. Auditing formulas You no longer have to be a calculus whiz to get

the most out of Excel formulas. The Formula Auditing toolbar gives
you quick and dirty access to an error checking function that works
especially well on large and complicated worksheets. Even if you are
working with a smaller worksheet, you can still make the process of
creating and auditing your formulas speed along much more quickly.

62
The Formula Tab is where you will find the Formula Auditing toolbar.
From here, you can choose from a number of options, including
formula execution, tracing formula precedents, hunting down errors
and locating dependent cells.

63
 PREPARATION OF PARTNERSHIP DEED

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

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

Q. How to prepare a partnership deed in India?

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

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

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

1. The names must not be too identical or similar to the name of

another existing firm doing similar business, so as to avoid confusion.
The reason for this rule being that the reputation or goodwill of a firm
may be injured, if a new firm could adopt an allied name.

64
 2. The name must not contain words like Crown, Emperor, Empress,
Empire or words expressing or implying the sanction, approval or
patronage of the Government, except when the State Government
signifies its consent (in writing) to the use of such words as part of the
firm name.

➢ Create a Partnership Deed:- The document in which the

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

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

➢ Nature of business to be carried on.
➢ Date of commencement of business.
➢ Duration of partnership (whether for a fixed period/project).
➢ Capital contribution by each partner.
➢ Profit sharing ratio among the partners.
➢ The above are the minimum essentials which are required in all
partnership deeds.

➢ Consider whether additional clauses are needed: - The

partners may also mention any additional clauses. Some of the
examples of additional clauses which may be mentioned in the
partnership deed are mentioned below:
➢ Interest on the partner's capital, partners' loan, and interest, if any, to
be charged on drawings.
➢ Salaries, commissions etc., if any, payable to partners.
➢ Method of preparing accounts and arrangement for audit.
➢ Division of task and responsibility, namely, the duties, powers and
obligations of all the partners.
➢ The rules to be followed in case of retirement, death and admission
of a partner.

65
➢ Do the partnership deed in the appropriate form: - The
deed so created by the partners should be on a stamp paper in
accordance with the Indian Stamp Act. Each partner should have a
copy of the partnership deed. A Copy of the Partnership Deed should
also be filed with the Registrar of Firms in case the firm is being
registered.

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

Partnerships in India are governed by the Indian Partnership Act,
1932.As per the Partnership Act, registration of partnership firms is
optional and is entirely at the discretion of the partners. The Partners
may or may not register their Partnership Agreement. However, in
the case where the partnership deed is not registered, the partners
may not be able to enjoy the benefits which a registered partnership
firm enjoys.
Registration of a partnership firm may be done before starting the
business or anytime during the continuance of partnership. However,
where the firm intends to file a case in the court to enforce rights
arising from the contract, the registration should be done before filing
the case.

➢ Register:- The procedure for registration of a partnership firm in

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

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

2. Duly filled specimen of Affidavit.
3. Certified True Copy of the Partnership Deed.
4. Ownership proof of the principal place of business or rental/lease
agreement thereof.

66
➢ Sign the application:- The application or statement must be signed
by all the partners, or by their agents especially authorised in this
behalf.

➢ Expect the registration process to proceed formally: -When

the registrar is satisfied with the points stated in the partnership deed,
he or she shall record an entry of the statement in a register called the
Register of Firms and issue a Certificate of Registration. The Register
of Firms maintained at the office of the Registrar contains complete
and up-to-date information about each registered firm.
This Register of Firms is open to inspection by any person on payment
of the prescribed fees; any person interested in viewing the details of
any firm can request the Registrar of Firms for the same and on
payment of the prescribed fees, a copy of all details of the firm
registered with the Registrar will be given to the applicant.

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

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

67
 Overview of VAT

Preparation of VAT returns

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

➢ Prerequisites

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

➢ Process

1. You prepare a copy of the sales ledger and the purchase ledger. The
ledgers show the invoices that have been paid and on which VAT is
thus due. The ledgers are for your own reference in the event of a
check-up by the tax office.
2. You prepare the VAT return. This consists of two steps.
1. You calculate the total amounts of VAT for each tax code.
2. You print the VAT return. The system fills out the fields in the
VAT return using the totals that you calculated in the first step.
3. For information about preparing VAT returns for VAT withheld
from vendors.
4. You file the VAT return with the tax office and remit the taxes.

68
➢ Computer online software

Tax Solution for professionals is to provide end to end management of

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

➢ A Solution For

➢ Income Tax Return

➢ TDS return
➢ Service tax return
➢ Balance sheet & audit report
➢ VAT returns
➢ Checking of assessment orders
➢ ROC form and filling
➢ CMA
➢ AIR return
➢ Document Management
➢ Challan
➢ All other required forms
➢ Standard letters to clients
➢ Standard formats of departmental letters
➢ Office assistance works & mechanism.
➢ Various types of reporting.

69
➢ Features

✓ Single switch board for all software.

✓ Common client information for all software.
✓ Searching of records by Code No., Name PAN, etc.
✓ Online auto-update of software.
✓ Defining user rights with grouping facility.
✓ Password protection for individual clients.
✓ Activation/De-activation of individual party from particular/all
software.
✓ Single window/screen to input, edit, view and print.
✓ Front-view buttons for easy understanding.
✓ User friendly similar layout of all software.
✓ LAN compatible.
✓ Various data input validation checks to eliminate errors.
✓ Easy auto backup of your precious data.
✓ Option to access from anywhere in the world.

Q. What is VAT?
Every commodity passes through different stages of production and
distribution before finally reaching the consumer. Some value is added
at each stage of the production and distribution chain: for instance, a
forged metal tool is more valuable than metal, which was itself more
valuable than the ore that was originally mined. Value Added Tax
(VAT) is a tax on this value addition at each stage.
Under a VAT system, a dealer collects tax on his sales, retains the tax
paid on his purchase and pays the balance to the government. It is a
consumption tax, because it is borne ultimately by the final consumer.
The tax paid by the dealer is passed on to the buyer. It is not a charge
on the dealer. VAT is instead a multipoint tax system with provision for
collection of tax paid on purchases at each point of sale.

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

Q. What is Input Tax?

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

VAT Computation
A dealer pays VAT by deducting the tax paid on purchases (input tax)
from his tax collected on sales (output tax).
In other words, VAT = Output Tax - Input Tax.
For example: A dealer pays Rs.10.00 @ 10% on his purchase price of
goods valued Rs.100.00. He sells the goods at Rs.150.00 and collects
tax amounting to Rs.15.00 (@ 10%). He will pay Rs.5.00 (Rs.15.00-
Rs.10.00) as he has already paid Rs.10.00 to his seller while purchasing
those goods.

Q. How is VAT different from Sale Tax?

VAT has fewer rates, as opposed to the high number of rates for Sales
Tax, and allows offsets of tax on inputs against those on outputs. VAT
also does away with the tax on tax.

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Q. Who will be covered by VAT?
All business transactions involving the sales of goods/commodities
carried on within a state by individuals, partnerships, or companies will
be covered by VAT.
VAT will not cover small businesses with sales below a certain limit. In
Maharashtra, the limit is 10 lakhs or below.

Q. What are the tax rates under VAT?

Since every state has its own VAT legislation, VAT rates, taxable base
and list of taxable goods, VAT rates will differ from state to state. As an
example, here are Maharashtra's tax rates as of June 2016:
▪ Schedule 'A'-Essential Commodities (Tax-free) - Nil
▪ Schedule 'B' - Gold, Silver, Precious Stones, Pearls etc. - 1%
▪ Schedule 'C'- Declared Goods and other specified goods - 5%
(Rates for items other than declared goods changed to 5.5%)
▪ Schedule 'D' - Foreign Liquor, Country Liquor, Motor Spirits, etc. -
20% and above
▪ Schedule 'E' - All other goods (not covered by A to D) - 12.5%
starting April 1, 2016.

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

➢ Trade
Uniform rates of VAT will boost trade; 100% self-assessment will
reduce the need for taxpayers to visit a tax department officer.
➢ Customers
Removing tax on tax reduces prices of goods that the end consumer
pays.
➢ Government
Since dealers will conduct self-assessment, the resources required
for this process will be fewer, and the revenue department can focus
more on collection than administrative processes.

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

➤ Tally Entries

Following process are followed for accomplishment this task:

▪ Firstly, we review all records of vouchers carefully, that no any
vouchers had any queries related to adjustments.
▪ Then, we make a separate folder for that work.
▪ Then, we create a company in Tally software by that company name
and started doing entries.
▪ Receipts & Payment entries are posted carefully as it carries some
contra entries also.
▪ Then after completing entries posting recheck the data by Balance
sheet, Trial balances & Day book.
▪ Any queries related to this work communicated to our external
mentor.

➤ Auditing
▪ These steps were followed by us in auditing:
▪ Build an audit strategy.
▪ Verify that all outgoing checks were properly signed, accounted for
and posted to the correct accounts.
▪ Ensure that all deposits were properly posted.
▪ Review all financial statements.
▪ Ensure compliance with all state and federal requirements.
▪ Review all treasurers' reports.
▪ Complete the financial review worksheet.
▪ Suggest improvements to internal controls.
▪ Determine your audit opinion.
▪ Submit all documents to companies.

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 ➤ Taxation

Following steps are followed by us -

▪ All of the first, we study about the taxation and mainly headed Income
Tax.
▪ Then, we started to prepare ITR'S statement in excel sheet according
to the format given to us.
▪ After that, we prepare the offline utilities of ITR'S according to the
income status in statement.
▪ Then, we login to the income tax site and upload that utility online, if
user not registered then first we registered them.

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 TAXATION

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

➤ Purposes and Effects -

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

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

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 Direct Tax

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

generated by all entities within their jurisdiction. By law, businesses
and individual must file an income tax return every year to determine
whether they owe any taxes or are eligible for a tax refund.
Financial year A year as reckoned for taxing or accounting purposes.
Assessment year Assessment year is the year immediately following
the financial year wherein the income of the financial year is assessed
There are some examples of Direct Taxes like:
1. Income Tax
2. Corporate Tax
3. Wealth Tax
4. Gift Tax
5. Estate Duty
6. Expenditure Tax
7. Fringe Benefit Tax

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

with respective income or profits. Income tax generally is computed
as the product of a tax rate time's taxable income.
There are 5 different heads of income sources for tax:
1. Salary
2. House Property
3. Profit & Gains from Business & Profession
4. Capital Gains
5. Other Sources

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 We calculate tax on financial year income in assessment year in which
year we are calculating the income tax. These are filing ITR
necessarily:
1. Individual/Proprietors
2. Firms
3. Trust/ NGO's/Societies/Association Of Persons/Body Of Individuals.
4. Companies
5. Local authorities/Municipality

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

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

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

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

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➢ Income Tax Slabs for Domestic Companies for F. Y.
2019-20

➢ Due Dates Of Filling Return

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

Here is the TAX CALENDAR for 2019.

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

Petroleum products, alcoholic drinks, electricity, and real estate are

taxed separately by the individual state governments. India adopted a
dual GST model, meaning that taxation is administered by both the
Union & State governments. Transactions made within a single state
are levied with Central GST (CGST) by the Central government and
State GST (SGST) by the State governments. For inter-state
transactions and imported goods & services, an integrated GST (IGST)
is levied by the Central government.

The GSTN software is developed by Infosys Technologies and IT

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

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 CHAPTER 4
LEARNING, CONCLUSION
AND SUGGESTIONS

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 LEARNING OUTCOMES

While working with Chartered Accountant (ABHISHEK PRAMOD

& CO.) I learned so many things which going to be helpful for rest of
my life.
During my internship program most importantly I realized how to work
under the pressure of responsibilities maintain chain of commands and
working in team. Ca Abhishek Sir, taught me to work with rules and
regulation, where I have gained the understanding on how to reach a
mutual understanding between different people while working
together. This practical orientation is necessary for the development
and preparation of a person before entering into the corporate world.
The things that I have learned at ABHISHEK PRAMOD & CO. are: -
• Meaning of responsibility
• Responsibility to the profession
• Necessity of commitment
• Auditing and reporting responsibilities
• Working with ethics
• Working independently
• Client dealings
• Punctuality and regularity is very important
• Ability to interact with different sorts of people

➢ Following is list of things that I have learned during my internship.

LEARN

➢ Learning new features and short cut in excel.

➢ Knowledge about Reconciliation of GST
➢ Filling of GST.
➢ E-filling for tax.
➢ ITR Registration
➢ UDIN Generating

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 Behavioral Learning from the Organization

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

➢ GOAL SETTING AND PLANNING

Anybody can wish for something to happen, but to accomplish
anything one must plan which surprisingly few people know how to do.
Planning requires setting concrete goals, identifying workable action
steps, and making a commitment to see the plan through.
Even setting the primary goal can be difficult when multiple issues are
competing for attention. Effective planning requires arranging
problems by importance and delegation. It is impossible to do
everything at once, but if one focuses on the most important tasks and
ask for help, then can accomplish a lot.

➢ 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.

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

➢ EMPATHY
Being an empathetic individual comes naturally to some, but is less
natural to others. Behaving with empathy means more than feeling bad
for someone who's sad or sharing in someone else's joy. It means being
able to step into someone else's world to understand not just what their
point of view is, but also why they have that point of view.
Empathy is a behavioural skill that can help one not only keep their
own peace of mind but can also help one to grow in your career
because empathetic people tend to put others at ease.

➢ CONFLICT RESOLUTION
At points of imbalance and friction, the employees must be able to
confront the tension between them and resolve whatever disagreement
arises. This is a twig of communication, though it is a distinct skill that
can be hard to develop due to hesitation and the intimate nature of the
workplace.
The bad habit to breed is ignoring these conflicts to the point that they
grow and spread like wild-fire, damaging relationships and the
productivity of both individuals and the team. Instead, employers
should remain aware of potential conflicts and be active in entering and
facilitating these more emotional interactions, and over time, help their
workers see the bigger picture when they harbor uncertainties.

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 5 BEST PRACTICES OBSERVED IN THE
ORGANIZATION

✓ There is no racism on the basis of any caste, creed, colour or gender.

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

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

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

✓ The working environment is lenient in the organization. Neither the

employees are overburdened by the work given. Neither they nor the
proprietor force them to work for extra time. All the work/targets are
completed by the employees in the provided time frame.

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

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

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

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 SUGGESTIONS AND RECOMMENDATIONS

Though the organization is really good at everything and everything is

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

✓ They have good opportunity to introduce the ISO standards training

program which no other firm is giving to customer.
✓ Try to adopt new technologies that their competitors are not using.
✓ Make a network that allows its customers to negotiate with them
easily.
✓ In comparison with their competitors, ABHISHEK PARMOD & CO.
has an edge in making an accurate and error free report.
✓ The local economy continues to be strong and we believe our typical
clients will continue to flourish.
✓ The company has mostly professional educated human resources,
which are the biggest threat for their competitors.
✓ ABHISHEK PARMOD & CO. strongly needs to improve its network
firms so as to be counted among one of the extensively know firms in
INDIA. The partner needs to make the best use of their goodwill to
bring more clientage and reputation to firm. They need to offer the
audit services at most economical cost with the assured quality
services to retain and expand clients.
✓ The infrastructure and working condition reviews can improve the
working efficiency of the trainees. Audit and Assurance is the tough
job. Some motivational meetings and mentoring exercises would
bring good feel among employees for their work. Time to time
financial bonuses or performance incentives will energize the staff.
✓ The trainees are not offered extra financial or any other incentive for
the extra work or over time. This causes some sort of abstractions
which immediately need to be overcome by the management.

88
✓ The firm, to be more competitive in future, still has room for
improvement in Information Technology. As firm don't have any of its
website to attract customer and their timely feedback as most of the
good firms have their own web and well organized.
✓ Firm also lacks in marketing perspective as it does not any marketer to
market and introduce their business, firm is getting business only on
personal relations of the partners and other firm personnel. So if firm
wants to improve its business volume it needs a professional marketer
as many other big firms adopted and have complete marketing
department.
✓ The employees are provided less salary than the government has
asked to provide in minimum wage act, therefore the employees must
be provided at least the minimum salary.
✓ It is 6 days working in the organization; most of the organizations are
using 5 days working schedules so that employees don't feel
exhausted and their efficiency increases. So the organization must
provide at least one-day leave to the employees to rest and freshen up.
✓ Most of the computers and laptops in which the work was done were
old and because of that we were unable to carry out our tasks properly.
The organization must have proper systems so that the work load can
be handled efficiently.

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 LIMITATIONS

✓ They have a small staff with limited skill set in many areas.
✓ Less number of staff members.
✓ Developments in technology are changing this market. ABHISHEK
PARMOD & 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.
✓ ABHISHEK PARMOD & CO. has many competitors. Under certain
circumstances stiff competition can threaten the margins and hence
the survival of the firm.

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 CONCLUSION

✓ ABHISHEK PARMOD & CO. is overall one of the Profit making and
reputed firm on Earth. The organization since its very first day is
devoted to providing quality services. The detailed and through
review of work and clients' trust shows the perfection with which it is
working.
✓ The firm has earned a distinction of being placed in the category 'A' in
the list of Panel of auditors maintained by State Bank of India.
Moreover, only these "A" category firms can audit of listed
companies.
✓ The Institute of Chartered Accountants of India has also carried out
the Quality Control Review and has issued satisfactory QCR report
stating that the firm has conducted the audits of the clients in
accordance with International Standards on Auditing.

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 CHAPTER 5
BIBLIOGRAPHY

92
 REFERENCES

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

✓ https://economictimes.indiatimes.com

✓ https://www.avalara.com

✓ https://www.business-standard.com

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

✓ http://www.gstcouncil.gov.in/

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

✓ https://www.wikipedia.org/

✓ www.google.com

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THANK YOU

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