A

PROJECT REPORT

ON

ANALYSIS OF ACCOUNTS AND FINANCE

A REPORT SUBMITTED UNDER THE PARTIAL FULFILMENT OF THE
DEGREE BACHELOR OF COMMERCE

SUBMITTED BY
POORNIMA
B.COM (V SEMESTER)
ROLL NO 2200100071126
DEPARTMENT OF COMMERCE

UNDER THE SUPERVISION

DR. SHAHLA JAHAN CHANDEL
ASSISTANT PROFESSOR
DEPARTMENT OF COMMERCE

SRI TIKA RAM KANYA MAHAVIDYALAYA, ALIGARH

(AFFILIATED TO: RAJA MAHENDRA PRATAP SINGH STATE
UNIVERSITY, ALIGARH)

2021-2024
 CERTIFICATE
This is to certify that the Summer Internship Report entitled “Accounts
& Finance, Direct & Indirect Taxation” by “POORNIMA” is
her original work. She has worked under my guidance for the
required period. This dissertation fulfils the requirement of the
ordinance relating to Summer Internship Training.

No part of this report has ever published by any other university or

institution for any purpose whatsoever.

Dr. Shahla Jahan Chandel

Professor
STRKM Aligarh
 DECLARATION

I Solemnly declare that the report titled “Accounts & Finance, Direct &
Indirect Taxation” is a bonafide record of work carried by me, submitted to
partial fulfillment of requirement of the award of degree under the guidance
of Dr. Shahla Jahan Chandel
bachelor of commerce from SHRI TIKA RAM KANYA MAHAVIDYALAYA,
ALIGARH

Date -------------------

Place -----------------

POORNIMA
Roll No: - 2200100071126
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my

supervisor Mr. Chirag as well as our principle prof. Dr. Shahla
Jahan Chandel who gave me the golden opportunity to do got this
wonderful project on the topic “Accounts & Finance, Direct &
Indirect Taxation”

Secondly I would also like to thanks my parents and friends who

helped me a lot this project within the limited time frame.

Lastly I like to thanks all my supporters who have motivated find me

to fulfil their project before the timeline.

POORNIMA
Roll No: - 2200100071126
 Index
1. CHAPTER 1: Introduction.........................................................................1-4
1.1. Introduction of Organization Business Sector .......................................... 1
1.1.1. About the Industry
1.1.2. Mission and Vision
1.2. Organizational Structure ............................................................................ 4

2. CHAPTER 2: Company Profile...............................................................05-13

2.1. About the Company ................................................................................... 6
2.1.1. Departments of CA Company
2.2. Services Offering ....................................................................................... 11

3. CHAPTER 3: Conceptual Discussion.....................................................14-36

3.1. Objective of the Study ............................................................................. 15
3.2. Job Description ......................................................................................... 17
3.3. Overview of TDS ..................................................................................... 18
3.3.1. TDS Returns
3.3.2. Process Flow of TDS
3.4. Overview of Vouching.............................................................................. 21
3.5. Preparation of books on Tally.................................................................. 22
3.6. Overview of Tally ERP9 .......................................................................... 23
3.7 Overview of Auditing .............................................................................. 29
3.8 Overview of GST ..................................................................................... 32
3.9 Overview of Taxation ............................................................................... 36
4. CHAPTER 4: Work and Research....................................................37-43
4.1. Description of accomplished work in Organization
4.2. Description of Research under the supervision
4.2.1. Taxation

5. CHAPTER 5: Learning, Conclusion & Suggestions.......................44-51

5.1. Behavioral Learning From Organization ............................................ 45
5.2. Suggestions and Recommendations..................................................... 48
5.3. Limitations ........................................................................................... 50
5.4. Conclusion............................................................................................. 51

6. CHAPTER 6: Bibliography ...............................................................52-53

6.1. References ............................................................................................ 53
 CHAPTER 1
INTRODUCTION

1
 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.

2
 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.

3
 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.
4
 CHAPTER 2
COMPANY PROFILE

5
 ABOUT THE COMPANY

Nitin Chirag & Associates 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.

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

6
 DEPARTMENTS OF CA COMPANY

Nitin Chirag & Associates is having its head office in DELHI. Almost
all the controls and regulations are dealt at head office in DELHI.
All the offices constitute different number of departments who
basically handle their respective functions. The major departments
include:
>Audit and Assurance Department: -

Firm provides audit and assurance services to wide range of clients

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

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

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

7
>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 Nitin Chirag & Associates 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 maybe
faced by computer users time to time.

8
> 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 Nitin Chirag & Associates 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.

9
 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.

10
 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.
11
>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.

12
>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.

13
 CHAPTER 3
CONCEPTUAL DISCUSSION

14
 OBJECTIVES OF STUDY

I choose to work with Nitin Chirag & Associates 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.
>To get knowledge of opportunities and threats while entering into
an organization.
>To get exposure to do a work in an organization and also known
about organizational behavior, ethical rules and regulations. 15
>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.

16
 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. Chirag 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 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

17
 Overview of TDS

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

> Salary
>Interest and dividends.
>Winnings from the lottery.
>Insurance commission.
>Rent.
>Fees from professional and technical services.
>Payments to contractors and subcontractors.

The withholding amounts for TDS can be deducted from an

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

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

both corporate and no corporate entities. The entity must deposit the
amount owed for withholding at any of the designated branches of
banks that are authorized to collect taxes on behalf of the government
of India. The entity must also submit the TDS returns, which contain
details about the payments and the challan for the tax deposited to the
Income Tax Department (ITD).
18
>TDS RETURNS: -

TDS is a system whereby the income tax is deducted at the time

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

>Income from interest on securities and debentures.

>Income from interest other than those on securities.
>Income from dividends.
>Income from withdrawal of EPF (Before expiry of a certain period
or if amount withdrawn is beyond the limit specified)
>Payment to contractors/subcontractors/freelancers.
>Winnings from horse races, lottery, crossword puzzles or any
game related wins.
>Income from rendering technical or professional services.
>Income from royalty, etc.

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

>Prevention of tax evasion: This mechanism ensures that the

government collects a portion of the income itself, chances of
hiding income or tax defaults are minimized significantly.
>Timely collection of tax.
>Ease in filing tax returns: As the tax is automatically collected
and deposited with the concerned authorities by the
deductor, it becomes easier for individuals to file their returns.
If there are no other sources of income for a person, once
TDS has been appropriately deducted, they need not pay
any additional tax during return filing.

19
>PROCESS FLOW OF TDS: -

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

Create vouchers for suppliers with

pay status % and applicable tax type

Calculate TDS on vouchers

Issue payments to suppliers with TDS

amounts deducted

Submit monthly payment for TDS to

tax authority

Update Challan

Generate monthly statements and

submit quarterly and annual returns

20
 Overview of VOUCHING

Vouching is a technical term which refers to the inspection of

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

21
 PREPARATION ON BOOKS ON TALLY

Following are the books that were made in tally:

>VOUCHER ENTRY: -
Tally provides flexibility to use predefined voucher types, comprising
of accounting and inventory voucher types to record various business
transactions. It also allows you to use Keyboard Shortcut Keys as well
as mouse operations during voucher entry.
To create a new Voucher Type,

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

>Enter the Voucher name

>Specify the Type of voucher
>Specify the Method of numbering
>Activate or deactivate the other functions as required.
>BOOKS AND REGISTERS: -
Tally provides you capability to generate various books and registers
for any specific period viz., month, date, and year and as on date.
In Tally, once voucher entry is made, the transactions are automatically
& immediately in the Day Book and other Books of Accounts without
any additional effort. Tally allows you to maintain and generate all
primary books of accounts and registers like:

>Cash Book >Debit Note Register

>Bank Book >Credit Note Register
>Purchase Register >General Ledger
>Sales Register
>Journal Register

22
 Overview of Tally ERP 9

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

> Creating a Journal Entry: -

Journal entries are usually used for finalization of accounts. To

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

23
 SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

>ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.
>CTRL+R: Recalls the Last narration saved for a specific voucher
type, irrespective of the ledger.

Allowing Cash Accounts in Journals:

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

24
To pass a Journal voucher with Cash/Bank Ledger,
1. Go to Gateway of Tally > Accounting Vouchers > Select F7:
Journal
2. Press the spacebar at the Debit or Credit field.
The Journal Voucher Screen with Cash/Bank Ledger selection will
appear as shown:

25
>Debit Note Entry

Debit Note is a document issued to a party stating that you are debiting
their Account in your Books of Accounts for the stated reason or vice
versa. It is commonly used in case of Purchase Returns, Escalation/De-
escalation in price, any other expenses incurred by you on behalf of
the party etc.
Debit Note can be entered in voucher or Invoice mode.
You need to enable the feature in F11: Accounting or Inventory
features.
· To use it in Voucher mode you need to enable the feature in
F11: Accounting Features - Use Debit / Credit Notes.
· To make the entry in Invoice mode enable the option F11:
Accounting Features - Use invoice mode for Debit Notes.
To go to Debit Note Entry Screen,
Go to Gateway of Tally > Accounting Vouchers
· Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.
You can toggle between voucher and Invoice mode by clicking
Ctrl+V. Pass an entry for the goods purchased returned to Supplier
A:

26
 SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

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

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

>Credit Note Entry

Credit Note is a document issued to a party stating that you are

crediting their Account in your Books of Accounts for the stated
reason or vice versa. It is commonly used in case of Sales Returns.

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

You need to enable the feature in F11: Accounting or Inventory
features.
· To use it in Voucher mode you need to enable the feature in
F11: Accounting Features - Use Debit / Credit Notes.
· To make the entry in Invoice mode enable the option F11:
Accounting Features - Use invoice mode for Debit Notes.
To go to Credit Note Entry Screen:
Go to Gateway of Tally > Accounting Vouchers
1. Click on Ctrl+F8: Credit Note on the Button Bar or press
Ctrl+F8. You can toggle between voucher and Invoice mode by
clicking Ctrl+V. Pass an entry for goods sold returned from Customer
A:

27
 SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

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

28
 OVERVIEW ON AUDITING

An auditor is someone who prepares and examines financial records.

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

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

An audit is a systematic and independent examination of books,

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

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

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

29
>Auditing Standards

The Public Company Accounting Oversight Board (PCAOB)

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

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

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

The ASB also issues Statements on Auditing Standards (SASs) that

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

For internal auditing, the Institute of Internal Auditors provides a

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

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

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

30
 The next important step is compiling the information from the audit.
When an auditor audits the accounts or inspects key financial
statements of a company, the findings are usually put out in a
report or compiled in a systematic manner.

The last and most important element of an audit is reporting

the result. The results are documented in the auditor’s report.

>Audit Planning

Audit planning includes deciding on the overall audit strategy and

developing an audit plan.

Auditing Standard No. 9 from the PCAOB describes an external

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

For internal auditing, the Institute of Internal Auditors provides

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

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.

31
 OVERVIEW ON GST

>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:

32
Under the GST regime, the tax is levied at every point of sale. In the
case of intra-state sales, Central GST and State GST are charged. Inter-
state sales are chargeable to Integrated GST.
Now let us try to understand the definition of Goods and Service Tax –
“GST is a comprehensive, multi-stage, destination-based tax that is
levied on every value addition.”

Multi-stage
There are multiple change-of-hands an item goes through along its
supply chain: from manufacture to final sale to the consumer.
Let us consider the following case:
. 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

33
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.

34
>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 TamilNadu)
35
 OVERVIEW ON Taxation

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

imposed upon a taxpayer by a governmental organizational in order to
fund various public expenditures. A failure to pay, along with evasion
of or resistance to taxation, is punishable by law.
In this we learned about the Direct & Indirect taxes. We filled most of
the income tax returns of different clients.

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

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

>Purposes & Effects

The levying of taxes aims to raise revenue to fund governing and to

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

>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.
36
 CHAPTER 4
WORK & RESEARCH

37
Description of process followed to accomplished the assigned
task in the organizat ion

>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.

38
> 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.

39
 Detailed description of any specific
study/research conducted by you under the
supervision of your mentor(faculty), the
study should co-related with internship
functional area

40
 TOPIC – 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

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 41
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

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

42
 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).

43
 CHAPTER 5
LEARNING, CONCLUSION
AND SUGGESTIONS

44
 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 45
unchallenging. Employees should improve to avoid both the frustration
of inexperience and contentment with their work.
People always have room to grow, and advance behavioral skills are
always welcomed. At the upper end, one can give your workers the
tools and mindset to aim for improvement by observing their behavior,
work habits, and production. Self-improvement training will help
provide feedback and criticisms that they can use to benefit their next
assignments. An essential part of promoting improvement is to
communicate to the employees that failure.

> EMPATHY

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

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

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

>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.

46
 5 BEST PRACTICES OBSERVED IN THE
ORGANIZATION

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

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

 Everyone is disciplined and dedicated towards their job, thus

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

 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.
47
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, Nitin Chirag &
Associates 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.
 Nitin Chirag & Associates strongly needs to improve its network
firms so as to be counted among one of the extensively know
firms in UK. The partner needs to make the best use of their
goodwill to bring more clientage and reputation to firm. They
need to offer the audit services at most economical cost with the
assured quality services to retain and 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.
4
8
 The trainees are not offered extra financial or any other
incentive for the extra work or over time. This causes
some sort of abstractions which immediately need to be
overcome by the
management.

 The firm, to be more competitive in future, still has room

for improvement in Information Technology. As firm don’t have
any of its website to attract customer and their timely feedback as
most of the good firms have their own web and well organized.

 Firm also lacks in marketing perspective as it does not

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

 The employees are provided less salary than the government

has asked to provide in minimum wage act, therefore the
employees must be provided at least the minimum salary.

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

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

49
 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. Nitin Chirag
& Associates 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.
 Nitin Chirag & Associates has many competitors. Under
certain circumstances stiff competition can threaten the margins and
hence the survival of the firm.

5
0
 CONCLUSION

 Nitin Chirag & Associates 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.

51
CHAPTER 6
BIBLIOGRAPHY

52
 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

53