Kausik 145

Internship Based Project
A Project Submitted to
University of Mumbai for partial completion of the degree of
Bachelor in Commerce (Accounting and Finance)
Under the Faculty of Commerce
By
Kaushik.B.Migwal
Under the Guidance of
Mehak Gupta
RSET’s
Ghanshyamdas Saraf College of Arts and Commerce
Affiliated to University of Mumbai
Reaccredited by NAAC with ‘B+’ Grade
S.V. Road, Malad (W) Mumbai – 400064
MARCH 2023
RSET’s
Ghanshyamdas Saraf
College of Arts and
Commerce
Affiliated to University of Mumbai

Reaccredited by NAAC with ‘B+’ Grade
S.V. Road, Malad (W)
Mumbai – 400064
CERTIFICATE
This is to certify that Mr. Kaushik. B. Migwal has worked and duly
completed her/his Project Work for the degree of Bachelor in Commerce
(Accounting & Finance) under the Faculty of Commerce in the subject of
Accounting & Finance and her/his project is entitled, “Mehak
Gupta’’ under my supervision.
I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for any
Degree or Diploma of any University.
It is her/ his own work and facts reported by her/his personal findings and
investigations.
Mehak Gupta
Project Guide Principal
Prof.
College
Seal
External Examiner Date :
DECLARATION
I the undersigned Mr. Kaushik B Migwal hereby, declare that the work
embodied in this project work titled “Internship Based Project” forms my own
contribution to the research work carried out under the guidance of Prof. Mehak Gupta is
a result of my own research work and has not been previously submitted to any other
University for any other Degree/ Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, hereby further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.
Mr. Kaushik .B.Migwal

Student
Certified by
Mehak Gupta
Project Guide Prof.
ACKNOWLEDGMENT
To list who all have helped me is difficult because they are so numerous
and the depth is so enormous.
I would like to acknowledge the following as being idealistic channels and

fresh dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me

chance to do this project.
I would like to thank my Principal, Dr. Ashwat Desai for providing the
necessary facilities required for completion of this project.
I take this opportunity to thank our Course Co-ordinator, Prof. Mamta

Chhajer for her moral support and guidance.
I would also like to express my sincere gratitude towards my project guide

Prof._Mehak Gupta_whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various

reference books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my Parents
and Peers who supported me throughout my project.
TABLE OF CONTENTS
TITLE
TITLE PAGE
LETTER OF TRANSMITTAL
LETTER OF APPROVAL
ACKNOWLEDGEMENT
EXCEUTIVE SUMMARY
TABLE OF CONTENTS
CHAPTER- 1 INTRODUCTION
INTRODUCTION
ORIGIN OF THE REPORT
OBJECTIVES OF THE STUDY
SCOPE OF STUDY
METHODOLOGY OF COLLECTION OF INFORMATION
LIMITATION OF STUDY
CHAPTER-2 FIRM PROFILE

FIRM PROFILE
PROFILE OF THE FIRM
BACKGROUND
OUR COMMITMENT
VISION
REGISTRATION OF FIRM
OUR TEAM
CHAPTER- 3 AUDIT PROCEDURE IN INDIA 3.1 AUDIT

PROCEDURE IN INDIA
GENERAL DEFINITION OF AUDIT PROCESS AND PROCEDURE
AUDIT PROCESS AND PROCEDURES IN INDIA
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CHAPTER-4 SERVICE OFFERING
CHAPTER- 5 JOB DISCRIPTION
TDS RETURN PREPARATION.

ONLINE REGISTRATION OF PAN IN INCOME TAX E- FILLING PORTAL
ONLINE CHECKING OF MASTER DATA UNDER COMPANIES ACT THROUGH WEBSITE.
CHAPTER-6 LEARNING PART
INTRODUCTION
NATURE OF THE JOB
SPECIFIC RESPONSIBILITIES OF THE JOB
CRITICAL OBSERVATION
CHAPTER-7 RECOMMENDATIONS
CHAPTER-8 CONCLUSIONS
CHAPTER-9 REFERENCES
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CHAPTER-1
STUDY BACKGROUND
1. INTRODUCTION
2. ORIGIN OF THE REPORT
3. OBJECTIVES OF THE STUDY
4. SCOPE OF STUDY
5. METHODOLOGY OF COLLECTION OF INFORMATION
6. LIMITATIONS OF THE STUDY
INTRODUCTION
In today’s world academic education is not adequate to enable a student to compete with confidence and
reach his / her goal without having experience with the outside world. In order to have an idea and gain
experiences, we the student of faculty of commerce, have to take internship program at any organization.
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As a part of my BCP Program, internship gave me the opportunity to have a practical knowledge on
auditing procedure. The assignment was how a Chartered accountancy firm performs an audit and also to
gain a knowledge and practical experience on how audit work is performed in corporations , companies and
non- profit making organizations .
To face much more complex and challenging business world in the challenging business area, practical
knowledge is essential to expand our theoretical base. To gather this practical knowledge,
We were forward different organization after completing BCP program. As I have an intention to become a
chartered accountant.
This study gave me an opportunity to observe and perform real world knowledge about the audit
procedure, which is followed by the chartered accountancy firm. In the internship period I could relate the
theoretical knowledge of auditing to practical exposure.
ORIGIN OF THE REPORT
The internship program is mandatory requirement for the student who are graduating from the BCP
program. In the internship program I was engaged in a host name Zeal Co-Team Pvt Ltd .
I have learned how an audit is conducted. I also learned about the audit procedures of chartered accountant
firm and how the engagement is done in case of an annual audit. As a result I have decided to write a report
about the audit procedure of Zeal Co-Team Pvt Ltd from practical knowledge that I have observed.
OBJECTIVES OF THE STUDY

1. To have an overall idea about the audit procedure of Zeal Co-Team Pvt Ltd .
2. To gain practical knowledge and experience on how Zeal Co-Team Pvt Ltd perform an audit and how
audit work is performed in corporation, companies, and non- profit making organizations.
3. To identify about how to accumulate and process evidences to make an audit report.
SCOPE OF STUDY
I have been assigned in Zeal Co-Team Pvt Ltd that gave me tremendous scope to familiarize with the audit
procedure of the organization. Major parts of scope are point out below:
a. Background of the host organization and also their position.

b. Audit procedure, which is allowed by the organization for performing any audit.
c. Nature and importance of it has depicted in this study.
d. Audit methodology of the firm, which is followed by the organization for performing any audit.
e. Audit administration of the firm, which is followed by the organization for performing any audit.
Methodology of collection of information
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In order to prepare the assigned project paper I have collected necessary information from two types of
source as follows:
Primary source information.

1. I have collected primary information by working with two audit team.
2. Discussing with engagement partner, audit manager, audit staff, and articled student.
Secondary sources information

1. I have also collected secondary information like annual audit report, management audit report,
accounting system & audit working papers.
2. The information was obtained from various corresponding files of the firm.
Limitations of the study

The study is conducted with an objective to make a thorough study of external audit procedure. I have
availed many facilities and faced some obstacles may be termed as limitation of the study. These
limitation are as follows.
a. Schedule time span was not sufficient to cover all information.
b. As an independent audit firm the information of the case study is not adequate for these study.
c. To some extent the exact audit procedure is not followed due to time and other constrains.
d. As the internship was the first practical experience, it was not possible for me to know all and
everything of audit procedure.
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Chapter-2
Firm’s Profile
1.Profile of the firm 2.Background

3.Our Commitment
4.Vision
5.Registration of Firm
6.Our Team
7.Profile of CA
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Firm’s Profile
Profile of the firm
Name of the firm : Zeal Co-Team Private Limited
Date of Registration: 7-7-2018

Address: 404, Orbit Industrial Premises Chin choli Bunder, Malad West, India 400064.
Type Of Registration : Regular
Phone : 8007795856
Email id : zealconsultancy.co.in
Web: www.zealca.com
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Background
Zeal Co-Team Pvt Ltd was established in July 2018. It is a Leading Chartered accountancy firm rendering
comprehensive professional services which includes audit, management consultancy, tax consultancy,
accounting services, manpower management, Zeal Co-Team Pvt Ltd is a professionally managed
partnership firm. The team consists of distinguished Chartered Accountant, corporate financial advisor and
tax consultants. The firm represents a combination of specialized skills, which are geared to offer 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.
OUR COMMITEMENT
We are committed to provide consistent, customized and workable solution to our clients and strive to
support our services with the highest level of professionalism, efficiency, and technology.
Vision
To accomplish the assignment through the experience of firm partner and professional staff and also to
arrange specific technical expertise from our associates of various streams of professions.
Registration of Firm
Zeal Co-Team Pvt Ltd Chartered Accountant Firm is registered under the institute of Chartered
Accountants of India in the year 2018.
OUR TEAM
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1. Zeal Co-Team Pvt Ltd is a fellow Chartered Accountant, Commerce Graduate, Law Graduate. Fellow of
Insurance Institute, & DISA (ICAI) since Feb, 2018. He has vast experience in accounts, audit, project
finance, management consultancy, consultancy of direct and indirect taxes and expert opinion on various
matters and handling corporate affairs in different areas.
Director of Company
HARIOM DHANANJAY PANDEY
Profile of CA HARIOM DHANANJAY PANDEY
CA, HARIOM DHANANJAY PANDEY is providing a Cost- Effective Alternative for book- keeping and
accounting needs of our valuable clients. We are processing day - to - day accounting transactions and
handling reporting needs (MIS) of all types ad sizes of business organization by our trained professionals,
having expert knowledge of various laws & computer application, SAP & other software, giving us the
edge to handle complex & challenging job thus ensuring the highest degree of standard in providing these
kind of services & it includes:-
1. Assistance in maintenance of necessary books of accounts of the company.
2. Transaction Management (IT- enable processing of financial transactions) like accounting transaction
processing including accounts receivable, accounts payable, payroll processing, expenses, bank
reconciliation, assets accounting, leases and credit appraisal.
3. Finalization of Accounts on monthly, quarterly, half- yearly & annual basis.
4. Translation of foreign currency transactions into INR and accounting thereof.
5. Conversion of Financial statement from foreign currency into INR and vice- versa.
6. Financial reporting on monthly, quarterly, half- yearly & annual financial statements including
performance analysis ( variance in budget & actual ) & forecasting.
7. Supervision of the accounting transactions to ensure compliance with best accounting practices.
8. Application & implementation of suitable internal control system & procedure as per the requirement of
the organization.
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Chapter- 3
AUDIT PROCEDURE IN INDIA
1. General definition of audit process and procedure.

2. Audit process and procedure in India.
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AUDIT PROCEDURE IN INDIA
General definition of audit process and procedure
Auditing is a systematic and independent examination of the financial statements, books of accounts,
records, and other supporting documents and operations of an organization, with the goal of determining its
compliance with the relevant laws and regulations and to express an opinion as to whether its financial
statements present a true and fair view of its financial position and performance. The process of auditing is
critical for ensuring the reliability, accuracy, and transparency of financial reporting, and for maintaining
the integrity and confidence of the financial markets.
The audit process typically involves the following steps:
Planning: This is the first step in the audit process and involves the auditor determining the scope of the
audit, the objectives, and the overall audit strategy. The auditor must assess the risks associated with the
entity, its industry, and its financial statements, and then plan how best to address those risks.
Understanding the entity and its environment: The auditor must gain an understanding of the entity’s
business, its operations, its systems, and its internal control environment. The auditor must also
understand the entity’s industry, its economic and regulatory environment, and the entity’s financial
reporting framework.
Assessment of control risk: The auditor must assess the risk of material misstatement in the financial
statements due to deficiencies in the entity’s internal control systems. The auditor must perform procedures
to obtain sufficient evidence to support the assessment of control risk and determine the nature, timing, and
extent of further audit procedures required.
Testing: The auditor must perform audit procedures to test the accuracy and completeness of the financial
information contained in the financial statements. The auditor must also test the effectiveness of the entity’s
internal control systems and the reliability of the information produced by these systems.
Evaluation: The auditor must evaluate the results of the audit procedures performed and determine whether
there is sufficient evidence to support the financial information contained in the financial statements. If
there are any material misstatements in the financial statements, the auditor must determine the root cause
of the misstatements and evaluate the impact of the misstatements on the financial statements.
Concluding and reporting: The auditor must provide an opinion on the financial statements based on the
evidence obtained during the audit. The auditor must also report any material misstatements or deficiencies
in internal control systems to the entity’s management and those charged with governance.
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The procedures used by auditors in the audit process may vary depending on the type of audit being
performed, the size and complexity of the entity, and the nature of its financial reporting framework.
However, the following are common audit procedures used by auditors:
Inspection: This involves examining the physical evidence of transactions and events, such as invoices,
contracts, and other supporting documents.
Observation: This involves observing the entity’s processes and procedures, such as physical inventory
counts and the processing of transactions.
Inquiry: This involves asking questions of the entity’s management and employees to obtain information
about its operations and systems.
Confirmation: This involves sending requests for confirmation of balances and transactions to third parties,
such as banks and customers.
Re-performance: This involves re-performing the entity’s accounting procedures to verify the accuracy and
completeness of the financial information contained in the financial statements.
Recalculation: This involves recalculating the entity’s financial information to verify its accuracy and
completeness.
Analytical procedures: This involves reviewing the relationships between financial and non- financial
data to identify trends, ratios, and other relationships that might indicate material misstatements in the
financial statements.
In order to carry out the audit process, auditors use a range of audit procedures, including inspection of
physical evidence, observation of operations, inquiry of management and employees, confirmation with
third parties, re-performance of the organization's procedures, recalculation of financial information, and
analytical procedures.
It is important to note that the audit process is not a guarantee that all material misstatements have been
identified, but rather it provides a reasonable level of assurance to stakeholders. The audit process is a
rigorous and comprehensive examination of the financial information, but it is not an exhaustive review of
all aspects of the organization.
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In conclusion, the audit process is a critical component of the financial reporting system, providing
assurance to stakeholders that the financial information presented is accurate and reliable. The process
involves a thorough examination of the organization's financial records, operations, and processes, and the
use of various audit procedures to test the accuracy and completeness of the financial information. The
ultimate goal of the audit process is to provide stakeholders with confidence in the financial information
being presented.
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CHAPTER- 4
SERVICES OFFERING
1. Company Registration :-
Company registration refers to the process of legally establishing a company by obtaining the
necessary licenses, permits, and approvals from the relevant government agencies. The process of
registering a company typically involves the following steps:
Choosing a business structure: The first step in the company registration process is to choose the
appropriate business structure for your company. This can be a sole proprietorship, partnership,
limited liability company (LLC), corporation, or other type of business structure. Each type of
business structure has its own set of legal and tax implications, so it's important to choose the one
that best fits your business needs.
Selecting a company name: The next step is to select a company name that is unique and not already
in use by another company. The chosen name must be approved by the relevant government
agencies before it can be registered.
Filing the necessary documents: The registration process typically requires the submission of a
number of documents, including articles of incorporation, a business plan, and a set of bylaws. In
addition, you may be required to provide personal information about the company's owners, officers,
and directors, as well as information about the company's business activities and operations.
Paying the necessary fees: In most countries, there is a fee associated with company registration.
This fee may vary depending on the type of company being registered and the location of the
business.
Obtaining any necessary licenses and permits: Depending on the type of business you are operating,
you may need to obtain additional licenses and permits, such as a business license, sales tax permit,
or occupational tax certificate.
Registering for taxes: After your company has been registered, you will need to register for the
appropriate taxes, such as income tax, value-added tax (VAT), and payroll taxes.
Obtaining any necessary insurance: Depending on the type of business you are operating, you may
need to obtain liability insurance, workers' compensation insurance, or other types of insurance.
The specific requirements and procedures for company registration vary depending on the location
of the business and the type of company being registered. It is important to seek the advice of a legal
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professional or business advisor to ensure that you are following the appropriate steps and meeting
all of the necessary requirements.
In conclusion, company registration is an important step in establishing a legally recognized and

legitimate business. The process involves obtaining the necessary licenses, permits, and approvals,
and registering for the appropriate taxes and insurance. By following the proper steps and
procedures, you can ensure that your business is in compliance with all relevant laws and
regulations.
ROC FILING: -
ROC filing refers to the filing of annual returns and other documents with the Registrar of
Companies (ROC), which is the government agency responsible for registering and regulating
companies in India. The ROC plays a critical role in maintaining accurate and up-to-date records of
all companies registered in India, including the filing of annual returns and other documents.
The following is a brief overview of the ROC filing process in India:
Preparation of Annual Returns: Companies must prepare and file annual returns with the ROC. This
document provides an update on the company's status, including changes in shareholding, directors,
and registered office, among other things.
Filing of Financial Statements: Companies must also file their financial statements, including the
balance sheet, profit and loss statement, and auditor's report, with the ROC.
Submission of Other Documents: In addition to annual returns and financial statements, companies
may be required to file other documents with the ROC, such as changes in the company's
Memorandum of Association or Articles of Association, or the appointment of a new director.
Payment of Fees: Companies must pay the relevant fees associated with ROC filing, which may
vary depending on the type of filing and the size of the company.
The ROC filing process is an important aspect of maintaining good corporate governance and
ensuring that a company is in compliance with Indian law.
Companies that fail to file their annual returns and other documents with the ROC may be subject to
penalties and legal consequences.
In conclusion, ROC filing is an important aspect of the company registration and regulation process
in India. Companies must file annual returns and financial statements, as well as other required
documents, with the ROC and pay the relevant fees. By complying with the ROC filing
requirements, companies can maintain accurate and up-to-date records and ensure that they are in
compliance with Indian law.
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GST RETURN: -
GST return refers to the documents that businesses must file with the tax authorities in India to
report their Goods and Services Tax (GST) liability. GST is a comprehensive indirect tax levied on
the supply of goods and services in India, and businesses are required to file periodic GST returns to
report their GST liability.
The following is a brief overview of the GST return filing process in India:
Registration: Businesses must first register for GST with the tax authorities. This involves providing
information about the business, including the type of goods or services being supplied, the location
of the business, and the names of the owners and directors.
Preparation of GST Returns: Businesses must prepare GST returns on a regular basis, typically
monthly or quarterly, to report their GST liability. The GST return must include information about
the sales and purchases made during the reporting period, the GST paid or collected on these
transactions, and the amount of GST payable or refundable.
Filing of GST Returns: Businesses must file their GST returns with the tax authorities using the GST
Network (GSTN), the online portal for GST filings in India. GST returns must be filed by the due
date, which is typically the 20th of the month following the end of the reporting period.
Payment of GST: If the GST return shows a GST liability, the business must pay the amount owed
to the tax authorities. GST payments can be made using the GSTN portal or through other approved
payment channels.
Reconciliation of GST Accounts: Businesses must reconcile their GST accounts to ensure that the
information reported in their GST returns matches the information recorded in their accounting
records. This helps to ensure that the GST liability reported is accurate and complete.
The GST return filing process is an important aspect of the GST compliance in India. Businesses
that fail to file their GST returns or pay the GST owed on time may be subject to penalties and
interest charges.
In conclusion, GST return filing is a critical aspect of the Goods and Services Tax compliance
process in India. Businesses must register for GST, prepare and file GST returns, and pay the GST
owed, to ensure that they are in compliance with the tax laws in India. By following the proper steps
and procedures, businesses can minimize the risk of penalties and ensure that they are reporting their
GST liability accurately and on time.
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TDS RETURN: -
TDS return refers to the documents that businesses and individuals must file with the tax authorities
in India to report their tax deducted at source (TDS) liability. TDS is a system of tax collection in
India, where tax is deducted at the source of income by the person responsible for making payment
to the recipient.
The following is a brief overview of the TDS return filing process in India:
Registration: Businesses and individuals who are responsible for deducting TDS must first register
for TDS with the tax authorities. This involves providing information about the business or
individual, including the name, address, and PAN number.
Preparation of TDS Returns: Businesses and individuals must prepare TDS returns on a regular
basis, typically quarterly, to report their TDS liability. The TDS return must include information
about the payments made during the reporting period, the TDS deducted on these payments, and the
details of the recipients of the payments.
Filing of TDS Returns: Businesses and individuals must file their TDS returns with the tax
authorities using the online portal of the tax department or through an authorized TDS return
preparer. TDS returns must be filed by the due date, which is typically the 7th of the month
following the end of the reporting period.
Payment of TDS: If the TDS return shows a TDS liability, the business or individual must pay the
amount owed to the tax authorities. TDS payments can be made using the online portal of the tax
department or through other approved payment channels.
Issuance of TDS Certificates: Businesses and individuals who deduct TDS must issue TDS
certificates to the recipients of the payments, showing the details of the payments and the TDS
deducted. The TDS certificates must be issued within the specified time frame, usually within 15
days of the due date of the TDS return.
The TDS return filing process is an important aspect of tax compliance in India. Businesses and
individuals who fail to file their TDS returns or pay the TDS owed on time may be subject to
penalties and interest charges.
In conclusion, TDS return filing is a critical aspect of the tax deducted at source compliance process
in India. Businesses and individuals who are responsible for deducting TDS must register for TDS,
prepare and file TDS returns, and pay the TDS owed, to ensure that they are in compliance with the
tax laws in India. By following the proper steps and procedures, businesses and individuals can
minimize the risk of penalties and ensure that they are reporting their TDS liability accurately and
on time.
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TALLY ACCOUNTING :-
Tally is a popular accounting software that is widely used in India for managing financial
transactions, maintaining financial records, and generating reports. It is a user-friendly software that
makes it easy for businesses and individuals to perform various accounting tasks and keep track of
their financial transactions.
The following is a brief overview of the features and benefits of using Tally for accounting:
Recording of Financial Transactions: Tally allows businesses and individuals to record their
financial transactions, including sales, purchases, payments, and receipts, in a systematic and
organized manner. This makes it easier to track the financial transactions of the business and keep
accurate financial records.
Generation of Reports: Tally provides a wide range of reports that help businesses and individuals to
keep track of their financial performance and make informed decisions. These reports include
balance sheets, profit and loss statements, cash flow statements, and more.
GST Compliance: Tally includes features to help businesses comply with the Goods and Services
Tax (GST) laws in India. Businesses can use Tally to record their GST transactions, prepare GST
returns, and pay the GST owed to the tax authorities.
TDS Compliance: Tally also includes features to help businesses and individuals comply with the
tax deducted at source (TDS) laws in India. Businesses and individuals can use Tally to record their
TDS transactions, prepare TDS returns, and pay the TDS owed to the tax authorities.
Inventory Management: Tally provides a comprehensive inventory management system that helps
businesses to keep track of their stock levels, manage their procurement processes, and monitor their
inventory costs.
Payroll Management: Tally includes features to help businesses manage their payroll and employee-
related expenses. Businesses can use Tally to calculate salaries, manage employee information, and
generate payroll reports.
In conclusion, Tally is a powerful and user-friendly accounting software that offers a range of
features and benefits to businesses and individuals. Whether it's recording financial transactions,
generating reports, or complying with tax laws, Tally makes it easier for businesses and individuals
to manage their finances and keep track of their financial performance.
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STATUTORY AUDIT:-
Statutory audit is an independent examination of the financial records and operations of a company,
organization, or government agency, to ensure that they comply with applicable laws, regulations,
and standards. The purpose of a statutory audit is to provide assurance to stakeholders, such as
shareholders, regulators, and customers, that the financial information provided by the organization
is accurate and reliable.
The following is a brief overview of the statutory audit process:
Appointment of the Auditor: Statutory audits are typically conducted by an independent auditor who
is appointed by the board of directors of the organization being audited. The auditor must be
licensed and registered with the relevant professional bodies, such as the Institute of Chartered
Accountants of India (ICAI).
Planning the Audit: Before the audit begins, the auditor will plan the audit process by assessing the
risk of material misstatement and deciding on the scope and nature of the audit procedures to be
performed. This includes reviewing the organization's internal control systems and assessing the
quality of the financial information being provided.
Gathering Information: During the audit, the auditor will gather information and evidence to
support the financial statements. This may involve reviewing financial records, interviewing
employees, and observing operations.
Evaluating Information: The auditor will evaluate the information gathered during the audit to
determine whether the financial statements are accurate and in compliance with applicable laws and
regulations. The auditor will also consider whether the financial information being provided is
complete and consistent, and whether the internal control systems of the organization are
functioning effectively.
Issuing the Audit Report: After the audit has been completed, the auditor will issue an audit report
that summarizes the results of the audit. The audit report will include the auditor's opinions on the
accuracy and reliability of the financial statements and whether the organization is in compliance
with applicable laws and regulations.
Follow-up: The auditor may also make recommendations for improvements to the organization's
financial reporting processes, internal control systems, or other areas where deficiencies have been
identified. The organization must take appropriate action to implement these recommendations and
ensure that they are in compliance with applicable laws and regulations.
In conclusion, the statutory audit is an important process that helps organizations to ensure that their
financial information is accurate and reliable, and that they are in compliance with applicable laws
and regulations. The auditor provides independent assurance to stakeholders that the financial
information provided by the organization is trustworthy, and that the organization is operating in a
manner that is consistent with applicable laws and regulations.
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TAX AUDIT: -
Tax audit is a process of reviewing an individual or organization's financial records and tax returns
to ensure that they are accurate and comply with applicable tax laws. The purpose of a tax audit is to
determine if a taxpayer has accurately reported their taxable income, claimed appropriate deductions
and credits, and paid the correct amount of taxes.
The following is a brief overview of the tax audit process:
Selection for Audit: Taxpayers are selected for audit based on various factors, such as unusual or
high tax deductions, high net worth, or discrepancies in the tax return compared to similar
taxpayers.
Notification: The taxpayer will receive a notification from the tax authority informing them that they
have been selected for a tax audit. The notification will specify the scope and duration of the audit,
and the documents and records that the taxpayer must provide.
Preparation: The taxpayer should begin preparing for the tax audit by gathering all of the relevant
financial records and tax returns. This may include bank statements, receipts, invoices, and other
documentation that supports the information reported on the tax return.
Audit Process: The tax audit process typically begins with an initial review of the tax return and
financial records. The auditor may ask the taxpayer to provide additional information or clarification
on specific items in the tax return. The auditor may also perform additional tests and procedures,
such as reviewing third-party documentation or conducting on-site inspections.
Audit Report: After the audit has been completed, the auditor will issue an audit report that
summarizes the results of the audit. The audit report will include any findings, such as discrepancies
or inaccuracies in the tax return, and any recommended adjustments to the tax liability.
Appeal: If the taxpayer disagrees with the findings of the tax audit, they have the right to appeal the
decision to a higher authority or to the tax court.
In conclusion, tax audit is an important process that helps to ensure that individuals and
organizations are accurately reporting their taxable income, claiming appropriate deductions and
credits, and paying the correct amount of taxes. While it can be a time-consuming and complex
process, taxpayers should approach a tax audit with professionalism and cooperation to minimize
any potential tax liability and ensure that their financial records are in compliance with applicable
tax laws.
INTERNAL AUDIT: -
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Internal audit is an independent, objective assurance and consulting activity designed to add value
and improve an organization's operations. It helps an organization to accomplish its objectives by
bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk
management, control, and governance processes.
The following is a brief overview of the internal audit process:

Planning: The internal audit process begins with planning, which includes determining the scope and
objectives of the audit, identifying the resources required, and scheduling the audit activities. The
internal auditor will also assess the organization's risk profile and prioritize the areas to be audited.
Fieldwork: The next step in the internal audit process is fieldwork, which involves gathering
information and evidence to support the internal auditor's findings and conclusions. This may
include reviewing financial records, interviewing employees, and observing operations.
Evaluation: During the evaluation stage, the internal auditor will analyze the information gathered
during the fieldwork and determine whether the organization's processes and controls are effective
and in compliance with applicable laws, regulations, and standards. The auditor will also consider
the efficiency and effectiveness of the processes and identify areas for improvement.
Reporting: After the internal audit has been completed, the internal auditor will issue a report that
summarizes the results of the audit and provides recommendations for improvement. The report will
be shared with senior management and the board of directors, and may also be shared with other
stakeholders, such as regulators and external auditors.
Follow-up: The internal auditor will follow up on the implementation of the recommendations made
in the audit report to ensure that the necessary improvements have been made. This may involve
conducting additional audits or monitoring the implementation of the recommendations.
In conclusion, internal audit is a valuable process that helps organizations to improve their
operations and achieve their objectives. It provides assurance to senior management and the board of
directors that the organization's processes and controls are effective and in compliance with
applicable laws, regulations, and standards. The internal auditor also provides independent and
objective recommendations for improvement, which can help the organization to achieve its goals
and achieve greater success.
CHAPTER -5
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JOB DISCRIPTION
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, they given 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 his process. He
also guided me that how to prepare GST return and filing data in Income tax return preparation solution.
Different task that I performed during my internship: -
1. VOUCHER ENTRY
2. PREPARING BOOKS OF ACCOUNT IN TALLY
3. GSTR1
4. GSTR2B
5. GSTR3B
6. TDS / TDS RETURN
7. BANK ENTRY
8. SALE ENTRY
9. PURCHASE ENTRY
10. DEBTOR RECONCILIATION
11. BANK RECONCILIATION
12. ACCOUNTING
Software used during internship: -

1. MS word
2. MS excels
3. Tally ERP 9
4. Tally prime
5. Clear tax
OVERVIEW OF TDS
TDS stands for Tax Deducted at Source. It is a system of tax collection in India that requires
individuals and organizations to deduct a portion of the payments they make to others and deposit
the deducted amount with the government as tax. TDS is governed by the provisions of the Income
Tax Act, 1961, and is an important part of the Indian tax system.
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Under the TDS system, the person making the payment is responsible for deducting tax at the
prescribed rate and depositing it with the government. The person receiving the payment must then
claim credit for the tax deducted and deposited by the person making the payment when filing their
income tax return.
TDS is applicable on various types of payments, including salaries, interest income, commission
income, rent income, and professional fees, among others. The rate of TDS varies depending on the
type of payment and the income tax slab of the recipient.
TDS returns must be filed by the person deducting the tax and depositing it with the government on
a quarterly basis. The TDS returns must be filed electronically and must be accompanied by a
statement of TDS detailing the tax deducted and deposited during the quarter.
Failure to comply with TDS provisions, including the timely filing of TDS returns and the
depositing of TDS with the government, can result in penalties and fines. Therefore, it is important
for individuals and organizations to be aware of their TDS obligations and to comply with the
relevant provisions of the Income Tax Act, 1961.
In India, the following types of income are subject to TDS:
Salary Income: TDS is deducted on salary income at the prescribed rate, which varies depending on
the income tax slab of the employee.
Interest Income: TDS is deducted on interest income received from banks, post offices, and other
financial institutions at the rate of 10%.
Commission Income: TDS is deducted on commission income at the rate of 10%.
Rent Income: TDS is deducted on rent income at the rate of 2% for individuals and HUFs and at the
rate of 5% for other entities.
Professional Fees: TDS is deducted on professional fees, including fees paid to consultants,
engineers, and other professionals, at the rate of 10%.
Winnings from Lotteries, Horse Races, and Other Gaming Activities: TDS is deducted on winnings
from lotteries, horse races, and other gaming activities at the rate of 30%.
Dividend Income: TDS is deducted on dividend income at the rate of 10%.
Sale of Property: TDS is deducted on the sale of property at the rate of 1% for individuals and HUFs
and at the rate of 1.5% for other entities.
Contractor Payments: TDS is deducted on payments made to contractors and sub-contractors for the
execution of works contracts at the rate of 2%.
Insurance Commission: TDS is deducted on insurance commission at the rate of 5%.
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It is important to note that these are the general rates of TDS and there may be changes based on the
provisions of the Income Tax Act, 1961. Therefore, it is advisable to consult with a tax expert to
confirm the applicable TDS rate for a specific type of income.
OVERVIIEW OF VOUCHER ENTRY
Voucher entry refers to the process of recording transactions in a financial accounting system using
vouchers. A voucher is a document that serves as proof of a financial transaction. In a manual accounting
system, a voucher is typically a physical document, but in a computerized accounting system, it can be an
electronic document.
The voucher entry process typically involves the following steps:
Preparation: A voucher is prepared for each transaction. The voucher includes the date of the transaction,
the name of the payee or recipient, a description of the goods or services received, and the amount of the
transaction.
Approval: The voucher must be approved by an authorized person, such as the manager or accountant,
before it can be recorded in the accounting system.
Recording: Once the voucher is approved, it is recorded in the accounting system. The information on the
voucher is entered into the appropriate accounts, such as accounts payable, accounts receivable, or cash.
Payment: After the voucher has been recorded, payment is made to the recipient. The payment is also
recorded in the accounting system, and the accounts payable account is updated to reflect the payment.
Reporting: Voucher information is used to generate various financial reports, such as balance sheets,
income statements, and cash flow statements. These reports provide a picture of the financial health of the
company and are used by management to make informed decisions.
Voucher entry is an important part of the financial accounting process, as it helps ensure accurate and
timely recording of transactions. This information is used by management to make informed decisions, by
auditors to verify the accuracy of financial statements, and by tax authorities to calculate taxes owed.
OVERVIEW OF PREPARING BOOKS OF ACCOUNT IN TALLY
To prepare books of account in Tally, you need to follow these steps:
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Install Tally: First, you need to install Tally on your computer. Tally is a popular accounting software that
can be used to manage financial transactions, generate financial statements, and file tax returns.
Create a Company: Once Tally is installed, you need to create a company by providing details such as
company name, address, financial year, and currency.
Set up Ledgers: A ledger is a record of all financial transactions under a particular head, such as cash, sales,
purchases, expenses, etc. You need to set up ledgers in Tally to record transactions.
Create Inventory: If you are a business that sells goods, you need to create an inventory of items in Tally.
This will help you track the stock of goods you have and the stock you have sold.
Record Transactions: Once the setup is complete, you can start recording transactions in Tally. You can
record transactions such as sales, purchases, payments, and receipts, among others.
Generate Financial Statements: Tally allows you to generate various financial statements, such as balance
sheets, profit and loss statements, and cash flow statements. These statements provide a picture of the
financial health of the company.
File Tax Returns: Tally can also be used to file tax returns, such as value-added tax (VAT), goods and
services tax (GST), and income tax, among others.
In conclusion, preparing books of account in Tally is a straightforward process that involves setting up the
software, creating a company, setting up ledgers, recording transactions, and generating financial
statements. Tally provides a comprehensive solution for managing financial transactions and provides
valuable insights into the financial health of a company.
OVERVIEW OF GSTR1
GSTR 1 is a crucial form under the Goods and Services Tax (GST) regime in India, which requires all
registered GST taxpayers, excluding certain categories such as composition dealers, to file a monthly or
quarterly return of all their outward supplies made during the tax period. The form provides a
comprehensive overview of the taxpayer's business activities and is used for calculating the GST liability of
the taxpayer as well as generating invoices for the recipient of the supplies.
The form requires the taxpayer to provide detailed information about all the supplies made during the tax
period, including the nature of the supply, the value of the supply, the GST rate applicable to the supply,
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and the GST amount charged. The taxpayer must also declare the details of any inward supplies received
for which Input Tax Credit (ITC) has been availed during the tax period.
It is mandatory for all registered taxpayers to file GSTR 1 even if they have not made any supplies during
the tax period. In such cases, they can file a nil return to inform the government of their non-business
activities. The form must be filed electronically through the GST portal and the deadline for filing the form
depends on the taxpayer's turnover and the frequency of filing the return.
The information provided in GSTR 1 forms the basis for the calculation of GST liability by the taxpayer.
The GST collected on outward supplies is credited to the government's account, while the GST paid on
inward supplies is set off against the liability, reducing the overall tax burden on the taxpayer.
Accurate and timely filing of GSTR 1 forms is essential for compliance with the GST rules and regulations.
Inaccurate or late filing of the form can result in various penalties, interest, and fines, which can have a
significant impact on the taxpayer's financial health.
It is also important to note that the recipient of the supplies can only avail Input Tax Credit (ITC) if the
information provided in GSTR 1 by the supplier is accurate and complete. Therefore, it is essential for
taxpayers to maintain proper records of their supplies and ensure that the information provided in
GSTR 1 is accurate and up-to- date.
In conclusion, GSTR 1 is a critical form under the GST regime in India, which requires all registered
taxpayers to declare details of their outward supplies and inward supplies received. The form is used for
calculating GST liability and generating invoices for the recipient of the supplies. Accurate and timely
filing of GSTR 1 forms is crucial for compliance with the GST rules and regulations and to avoid penalties,
fines, and interest.
OVERVIEW OF GSTR2B
GSTR 2B is a summary of all inward supplies made to a taxpayer during a tax period, as reported by their
suppliers in their GSTR 1 forms. It is an auto-generated form that is available on the GST portal for all
registered taxpayers in India. The form provides a consolidated view of all the inward supplies received by
a taxpayer, making it easier for them to reconcile the details and claim Input Tax Credit (ITC) for the GST
paid on those supplies.
The GSTR 2B form contains the following details:
Details of the supplier, including the GSTIN and name

Nature of the supply (goods or services)
Invoice or debit note number and date
Value of the supply
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GST rate and amount
Eligible ITC amount
ITC claimed or reversed in the current tax period
It is important for taxpayers to regularly review their GSTR 2B forms to ensure that all the inward supplies
received have been correctly reported by their suppliers. Any discrepancies between the inward supplies
reported in the GSTR 2B form and the taxpayer's records should be promptly brought to the attention of the
supplier for correction.
Claiming Input Tax Credit (ITC) is a crucial aspect of the GST regime in India, as it helps reduce the
overall tax burden on the taxpayer. To claim ITC, the taxpayer must have all the relevant invoices and other
supporting documents, such as Delivery Challan or Bill of Supply. The taxpayer must also ensure that the
details of the inward supplies and the related GST have been accurately reported in their GSTR 2B form.
The GSTR 2B form is updated on a daily basis, based on the GSTR 1 forms filed by the suppliers. It is
recommended that taxpayers review their GSTR 2B form regularly to ensure that they are able to claim all
the eligible ITC within the prescribed time limits.
In conclusion, GSTR 2B is an auto-generated form that provides a summary of all inward supplies made to
a taxpayer during a tax period. The form makes it easier for taxpayers to reconcile the details of the inward
supplies received and claim Input Tax Credit (ITC) for the GST paid on those supplies. Regular review of
the GSTR 2B form is important for compliance with the GST rules and regulations and to avoid missing
out on any eligible ITC.
OVERVIEW OF GSTR 3B
GSTR 3B is a self-declared summary return form under the Goods and Services Tax (GST) regime in India.
It is a simplified form that is required to be filed by all registered GST taxpayers, except for certain
categories of taxpayers such as composition dealers, to pay their GST liability for the tax period. The form
requires taxpayers to declare their total taxable supplies, total input tax credit (ITC) availed, and the net
GST liability for the tax period.
The form must be filed electronically through the GST portal and the deadline for filing the form depends
on the taxpayer's turnover and the frequency of filing the return. The government introduced GSTR 3B as a
temporary measure to provide relief to taxpayers during the initial implementation of GST. The information
provided in GSTR 3B forms the basis for the calculation of GST liability by the taxpayer.
GSTR 3B contains two parts – Part A and Part B. Part A of the form requires taxpayers to declare their total
taxable supplies, total input tax credit (ITC) availed, and the net GST liability for the tax period. Part B of
the form requires taxpayers to make payment of the net GST liability declared in Part A. The payment must
be made through the electronic cash ledger maintained on the GST portal.
The GST collected on outward supplies is credited to the government's account, while the GST paid on
inward supplies is set off against the liability, reducing the overall tax burden on the taxpayer. Accurate and
timely filing of GSTR 3B forms is essential for compliance with the GST rules and regulations. Inaccurate
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or late filing of the form can result in various penalties, interest, and fines, which can have a significant
impact on the taxpayer's financial health.
The Input Tax Credit (ITC) availed by the taxpayer must be accurately reported in GSTR 3B, as it forms
the basis for the calculation of the GST liability. To claim ITC, the taxpayer must have all the relevant
invoices and other supporting documents, such as Delivery Challan or Bill of Supply. The taxpayer must
also ensure that the details of the inward supplies and the related GST have been accurately reported by the
supplier in their GSTR 1 form.
It is also important for taxpayers to regularly review their GSTR 2B forms, which is an auto-generated form
that provides a summary of all inward supplies made to a taxpayer during a tax period. The form makes it
easier for taxpayers to reconcile the details of the inward supplies received and claim ITC for the GST paid
on those supplies. Regular review of the GSTR 2B form is important for compliance with the GST rules
and regulations and to avoid missing out on any eligible ITC.
In conclusion, GSTR 3B is a simplified self-declared summary return form under the GST regime in India,
which is required to be filed by all registered GST taxpayers to pay their GST liability. The form requires
the declaration of total taxable supplies, total ITC availed, and the net GST liability for the tax period.
Accurate and timely filing of GSTR 3B forms is essential for compliance with the GST rules and
regulations and to avoid penalties, fines, and interest. The taxpayer must maintain proper records of all
inward supplies received and the related GST to ensure that the information provided in GSTR 3B is
accurate and up-to-date. Regular review of the GSTR 2B form is also important to avoid missing out on any
eligible ITC.
OVERVIEW OF BANK ENTRY
Making a bank entry in Tally is a straightforward process that involves recording your financial
transactions. Whether you are a small business or large corporation, you must keep a record of all the
money that is coming in and out of your accounts. Having accurate records is essential for tax purposes and
for budgeting.
Step 1: Recording Transactions
The first step in making a bank entry in Tally is to record all transactions accurately. This includes any
money that was paid out, any money that came in, and any transfers between accounts. In order to record
transactions, you will need to enter details such as the date of the transaction, the amount of the transaction,
and any other information that is relevant to the transaction.
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Step 2: Entering Details into Tally
Once you have all the details of the transaction, the next step is to enter them into Tally. To do this, you
must first open the bank entry form. This is located in the Ledger section of the software. Once the form is
open, you will need to enter all the details of the transaction. This includes the date, the amount, and any
other information that is relevant to the entry.
Step 3: Saving the Entry
Once you have entered all the details of the transaction, the next step is to save the entry. This ensures that
the entry will be recorded and that it can be accessed at a later date. To save the entry, click on the ‘Save’
button at the bottom of the form. This will save the entry and you will see a confirmation message on the
screen.
Step 4: Verifying the Entry
The final step in making a bank entry in Tally is to verify the entry. This is important to ensure that the
entry is accurate and that all the data is correct. To verify the entry, click on the ‘Verify’ button at the
bottom of the form. This will check the entry and the software will tell you if the entry is valid or not. If the
entry is not valid, you will need to re-enter the details.
Making a bank entry in Tally is an essential part of keeping accurate financial records. By following these
four simple steps, you can make sure that all your financial transactions are properly recorded and stored.
OVERVIEW OF SALE ENTRY
This should cover the basics of creating a sale entry in Tally and what components are needed to make it
successful.
Types of Sale Entries: This should cover the different types of sale entries available in Tally, as well as
their respective benefits and drawbacks.
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Step by Step Guide to Creating a Sale Entry: This should provide a comprehensive guide to creating a
successful sale entry in Tally.
Troubleshooting Tips: This should provide tips on how to troubleshoot any issues that may arise while
creating a sale entry in Tally.
Conclusion: Finally, this should provide a concise summary of the essay and any key takeaways.
OVERVIEW OF DEBTOR RECONCILIATION
Debtor reconciliation is an essential financial process that allows businesses to ensure accuracy in their
accounts. Properly maintaining a company's books of accounts is key to success. The process of reconciling
a debtor account involves comparing a record of all your accounts receivable with the customer’s records of
what they owe. It is important to have accurate and up-to-date records to ensure that customers do not
accidentally overpay or underpay for their products and services.
Reasons for Reconciling Debtor Accounts
Reconciling debtor accounts is important for a number of reasons. Firstly, it helps to ensure that the
customer is properly billed for the products and services that they have purchased. By ensuring that the
invoices are accurate and up-to-date, it will be easier to keep track of customer accounts, reducing any
potential for errors. Secondly, reconciling debtor accounts can help to identify any discrepancies between
the customer’s records and the company’s records. This can help to reduce the risk of financial losses that
may be caused by incorrectly billed customers.
Steps to Reconciling Debtor Accounts
Reconciling debtor accounts is a simple process that involves a few steps. The first step is to collect all of
the customer’s records and compare them to the company’s records. This involves ensuring that all of the
customer’s invoices are properly recorded and up- to-date, and that the customer’s records match the
company’s records. The second step is to reconcile any discrepancies by entering the appropriate
adjustments into the company’s books of accounts. The third step is to review the reconciliation to ensure
accuracy and completeness.
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Benefits of Reconciling Debtor Accounts
Reconciling debtor accounts can provide numerous benefits for businesses. It can help to ensure that
customer accounts are accurately maintained, reducing the risk of financial losses due to incorrect billing. It
can also help to identify discrepancies between the customer’s records and the company’s records, allowing
businesses to take corrective action. Finally, it can help to improve the accuracy and completeness of
financial statements.
Reconciling debtor accounts is an essential process for businesses, and it is important to ensure that it is
completed regularly. Doing so can help to avoid potential financial
OVERVIEW OF BANK RECONCILIATION
Bank reconciliation is the process of matching the transactions shown on a company’s bank statement
with those that are recorded in their accounting records. This process helps to ensure accuracy between
the two records and identify any discrepancies. The goal of bank reconciliation is to ensure that all
transactions are properly recorded and accounted for in the company’s accounting records.
The process of bank reconciliation involves comparing the transactions on the bank statement to the
transactions in the accounting records, and then making adjustments if there are any discrepancies. This
includes making sure that any deposits, withdrawals, and other transactions are properly recorded in both
the bank statement and the accounting records. Bank reconciliation is an important process that helps to
ensure accuracy in the company’s financial records.
OVERVIEW OF ACCOUNTING
Accounting is the process of recording and analyzing financial transactions. It is the practice of tracking and
reporting financial activity within a business or organization. Accounting involves recording financial
transactions, analyzing them, and creating financial reports that can be used to make decisions. Accounting
is essential for businesses, as it helps to assess their financial health and track their progress. Accounting is
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also important for individuals, as it helps them to understand their financial situation and make smart
financial decisions.
OVERVIEW OF CREDIT NOTE
A credit note, also known as a debit note or a credit memo, is a document that is issued by a seller to a
buyer to inform the latter that the amount for a previous sale has been adjusted. In the context of GST
(Goods and Services Tax), a credit note is issued to reflect a change in the value of a supply or to rectify an
error in the invoice. The credit note serves as evidence of the adjustment made to the original invoice and
helps in adjusting the amount of tax payable.
Under the GST regime in India, a credit note is issued when there is a change in the value of a supply or a
reduction in the tax liability. For example, a credit note may be issued when there is a reduction in the
selling price, a change in the quantity or quality of the goods or services supplied, or a mistake in the
invoice.
A credit note must be issued in accordance with the provisions of the GST Act and must include the
following information:
Name, address, and GSTIN (Goods and Services Tax Identification Number) of the issuer and the recipient.
Date of issue of the credit note.
Description of the goods or services supplied.
Taxable value and the amount of GST charged on the taxable value.
Reason for issuing the credit note.
Serial number and the reference to the original invoice.
Signature of the authorized person.
The credit note must be issued within 30 days from the date of the occurrence of the event that has led to
the adjustment of the value of the supply. The credit note must be reflected in the GST returns for the
relevant tax period.
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When a credit note is issued, the recipient is entitled to avail credit of the GST charged in the original
invoice by reducing the GST liability on a self-assessment basis. The recipient can then utilize the credit so
obtained to discharge his tax liabilities.
In conclusion, a credit note is a useful document in the GST regime as it helps to adjust the amount of tax
payable on a supply. It also helps to maintain transparency and accountability in the tax system. It is
important for taxpayers to understand the provisions related to credit notes and to ensure that they are
issued in accordance with the GST Act.
OVERVIEW OF DEBIT NOTE
A debit note, also known as a debit memo, is a document issued by a seller to a buyer to inform the latter
that the amount for a previous sale has been adjusted. In the context of GST (Goods and Services Tax), a
debit note is issued to reflect an increase in the value of a supply or to rectify an error in the invoice. The
debit note serves as evidence of the adjustment made to the original invoice and helps in adjusting the
amount of tax payable.
Under the GST regime in India, a debit note is issued when there is an increase in the value of a supply or
an increase in the tax liability. For example, a debit note may be issued when there is an increase in the
selling price, a change in the quantity or quality of the goods or services supplied, or a mistake in the
invoice.
A debit note must be issued in accordance with the provisions of the GST Act and must include the
following information:
Name, address, and GSTIN (Goods and Services Tax Identification Number) of the issuer and the recipient.
Date of issue of the debit note.
Description of the goods or services supplied.
Taxable value and the amount of GST charged on the taxable value.
Reason for issuing the debit note.
Serial number and the reference to the original invoice.
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Signature of the authorized person.
The debit note must be issued within 30 days from the date of the occurrence of the event that has led to the
adjustment of the value of the supply. The debit note must be reflected in the GST returns for the relevant
tax period.
When a debit note is issued, the recipient is liable to pay the additional amount of tax indicated in the debit
note. The recipient must discharge the additional tax liability within the time prescribed under the GST Act.
In conclusion, a debit note is a useful document in the GST regime as it helps to adjust the amount of tax
payable on a supply. It also helps to maintain transparency and accountability in the tax system. It is
important for taxpayers to understand the provisions related to debit notes and to ensure that they are issued
in accordance with the GST Act. The prompt issuance of a debit note helps to avoid any disputes between
the buyer and the seller and helps to maintain a healthy business relationship.
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OVERVIEW ON GST
1. WHAT IS GST?
Goods and Services Tax (GST) is a comprehensive indirect tax levied on the supply of goods and services
in a country. It is a value-added tax that replaces multiple indirect taxes levied by the central and state
governments. The purpose of GST is to create a unified tax system that simplifies the indirect tax structure
and reduces the tax burden on consumers.
GST was first introduced in India in 2017 and since then, it has become one of the most important indirect
taxes in the country. Under the GST regime in India, goods and services are taxed at multiple stages of the
supply chain, from production to consumption. GST is a destination-based tax, which means that the tax is
levied at the place where the goods or services are consumed.
GST is applicable to all goods and services, except for a few items that have been exempt from tax. GST is
levied at different rates for different goods and services, ranging from 0% to 28%. The GST council, which
is a constitutional body, determines the GST rate for each item.
In India, GST is governed by the Central Goods and Services Tax Act, 2017 and the State Goods and
Services Tax Act, 2017. The GST Act lays down the provisions related to registration, returns, payment of
tax, and other related matters.
The GST regime in India has several advantages. It has reduced the cascading effect of taxes and has made
the indirect tax structure simpler. GST has also increased the efficiency of the tax system by reducing the
compliance burden on taxpayers and by improving the administration of taxes. GST has also led to an
increase in the revenue collections of the central and state governments.
However, the implementation of GST in India has also faced some challenges. The complex GST laws and
the frequent changes made to the laws have caused confusion among taxpayers. The cumbersome process
of filing GST returns and the lack of proper infrastructure have also been a challenge.
In conclusion, GST is a comprehensive indirect tax levied on the supply of goods and services in a country.
It is a value-added tax that replaces multiple indirect taxes and creates a unified tax system. GST has
several advantages, such as reducing the cascading effect of taxes, increasing the efficiency of the tax
system, and increasing the revenue collections of the government. However, the implementation of GST
has also faced some challenges, such as confusion among taxpayers, the cumbersome process of filing
returns, and the lack of proper infrastructure.
ADVANTAGES OF GST
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Goods and Services Tax (GST) has been implemented in many countries as a comprehensive indirect tax on
the supply of goods and services. The implementation of GST has brought several advantages to the
economy and the tax system of a country. Some of the key advantages of GST are discussed below:
Reduced cascading effect of taxes: GST replaces multiple indirect taxes levied by the central and state
governments, such as VAT, excise duty, service tax, etc. This reduces the cascading effect of taxes, as taxes
are now levied only on the value added at each stage of the supply chain. This results in a lower tax burden
on consumers and improves the competitiveness of goods and services in the domestic market.
Improved tax compliance: GST has improved tax compliance by simplifying the indirect tax structure. The
implementation of GST has made it easier for taxpayers to understand their tax obligations and to comply
with the tax laws. The use of technology, such as GSTN, has made it easier for taxpayers to file their
returns and to pay their taxes. This has reduced the compliance burden on taxpayers and has improved the
efficiency of the tax system.
Increased revenue collections: GST has increased the revenue collections of the central and state
governments. The unified tax system has reduced the opportunities for tax evasion and has improved the
tax administration. The improved tax compliance and the reduced tax evasion have led to an increase in the
revenue collections of the government.
Improved competitiveness: GST has improved the competitiveness of goods and services in the domestic
market. The reduced cascading effect of taxes has made goods and services more competitive, both in terms
of price and quality. This has led to an increase in the demand for goods and services and has boosted the
growth of the economy.
Increased transparency: GST has increased transparency in the indirect tax system. The unified tax system
has made it easier for taxpayers to understand their tax obligations and to comply with the tax laws. The use
of technology, such as GSTN, has also made it easier for taxpayers to track the movement of goods and
services and to claim input tax credits. This has reduced the opportunities for tax evasion and has improved
the tax administration.
Improved inter-state trade: GST has improved inter-state trade by eliminating the barriers to trade created
by different indirect tax laws in different states. The unified tax system has made it easier for businesses to
trade across state borders and has reduced the compliance burden on taxpayers. This has led to an increase
in inter-state trade and has boosted the growth of the economy.
Reduced tax disputes: GST has reduced tax disputes by simplifying the indirect tax structure. The unified
tax system has made it easier for taxpayers to understand their tax obligations and to comply with the tax
laws. The use of technology, such as GSTN, has also made it easier for taxpayers to track the movement of
goods and services and to claim input tax credits. This has reduced the opportunities for tax disputes and
has improved the tax administration.
In conclusion, GST has several advantages, such as reduced cascading effect of taxes, improved tax
compliance, increased revenue collections, improved competitiveness, increased transparency, improved
inter-state trade, and reduced tax disputes. The implementation of GST has brought several benefits to the
economy and the tax system of a country and has made it easier for taxpayers to comply with the tax laws.
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However, it is important to ensure that the GST laws are implemented effectively and that the tax
administration is improved to ensure that the benefits of GST are fully realized.
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Overview of Income tax
Income Tax is a direct tax levied by the government on the income earned by individuals, companies,
Hindu Undivided Families (HUFs), firms, and other entities. The Income Tax Act, 1961 governs the
taxation of income in India. The act provides for the calculation and collection of tax on the income earned
by individuals, companies, and other entities in India. The Income Tax Department is responsible for the
administration and enforcement of the Income Tax Act in India.
Income Tax is calculated based on the taxable income, which is the difference between the total income and
the deductions and exemptions allowed under the Income Tax Act. The total income includes income from
various sources such as salary, business or profession, capital gains, house property, and other sources. The
deductions and exemptions allowed under the Income Tax Act include investments in specified savings and
insurance products, payments made towards life insurance premiums, medical insurance, and other similar
expenses.
The tax rate applicable to an individual depends on the taxable income and the type of taxpayer. For
individuals, the tax rate varies from 0% to 30%, based on the taxable income. For companies, the tax rate is
22% for the financial year 2021-22 and 25% for the financial year 2022-23 and subsequent financial years.
The due date for the filing of Income Tax returns is 31st July of each financial year. Individuals, companies,
and other entities are required to file their returns within the due date, even if they have not earned any
taxable income during the financial year. The returns filed by individuals and companies are processed by
the Income Tax
Department, and in case of any discrepancies, the taxpayer is required to respond to the notice issued by the
department.
Income Tax has several advantages. It helps the government to mobilize resources for various development
activities and to provide basic amenities to the citizens. It also provides an opportunity for the citizens to
plan their finances and to reduce their tax liability by making eligible investments and claims. The income
tax returns filed by individuals and companies provide valuable information to the government about the
economic activities in the country.
In conclusion, Income Tax is a direct tax levied by the government on the income earned by individuals,
companies, and other entities in India. The Income Tax Act, 1961 governs the taxation of income in India
and provides for the calculation and collection of tax on the income earned. The tax rate varies based on the
taxable income and the type of taxpayer, and the returns are required to be filed within the due date of 31st
July of each financial year. The Income Tax Department is responsible for the administration and
enforcement of the Income Tax Act in India.
38
Income tax slab rate
The Income Tax slab rate is the rate at which tax is levied on an individual's taxable income. The slab rate
system is applicable to resident individuals, Hindu Undivided Families (HUFs), and firms in India. The tax
slab rates are revised by the government from time to time, and the current slab rates are applicable for the
financial year 2022-
23.
The tax slab rates for the financial year 2022-23 are as follows:
For individuals below the age of 60 years:
Taxable income up to Rs. 2,50,000 is exempt from tax.

Taxable income between Rs. 2,50,001 and Rs. 5,00,000 is taxed at 5%.
Taxable income above Rs. 10,00,000 is taxed at 30%.
For senior citizens (individuals aged 60 years or above but below 80 years):

For super senior citizens (individuals aged 80 years or above):

It is important to note that the tax slab rates are applicable to the taxable income after deducting the
exemptions and deductions allowed under the Income Tax Act, 1961. The taxable income can be reduced
by making eligible investments and claims under various sections of the act, which can help lower the tax
liability.
39
CHAPTER -6
LEARNING
Behavioral learning from the Organization

1. COMMUNICATION
Good communication consists of many other different sub-skills, from suitable patterns of body
language and eye contact with the ability to follow instruction are especially important but are often
ignored or taken for granted. Many people simply do not pay close attention to what other say or
write and do not ask follow – up question to check their understanding. As a result, individuals act
on their own inaccurate assumption and create inefficiencies and frustration at work.
Communication training will help them overcome these challenges.
2. 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.
3. 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
40
as unchallenging. Employees should improve to avoid both the frustration of inexperience and
contentment with their work.
People always have room to grow, and advance behavioral skills are always welcomed. At the upper
end, one can give your workers the tools and mindset to aim for improvement by observing their
behavior, work habits and production. Self – improvement training will help provide feedback and
criticism that they can use to benefit to their next assignments. An essential part of promoting
improvement is to communicate to the employees that failure.
4. Empathy
Empathy is the ability to understand and share the feelings of others. It is a complex emotional and
cognitive response that involves recognizing and interpreting the emotional states of others and then
responding to them in an appropriate way. Empathy helps us to connect with others and to build
strong, supportive relationships. It is also a key component of emotional intelligence, as it enables us
to understand the perspectives of others and to respond to their needs in a compassionate and
understanding way. Empathy can be developed through practice and by learning to be more mindful
of the emotions of those around us.
5. Conflict resolution
Conflict resolution is the process of resolving disputes or disagreements between individuals or

groups in a peaceful and mutually acceptable manner. Conflict can arise due to a variety of reasons,
such as differences in opinions, beliefs, values, or interests. Effective conflict resolution requires
good communication skills, a willingness to compromise, and the ability to understand the
perspectives of others.
There are several approaches to conflict resolution, including negotiation, mediation, arbitration, and
litigation. Negotiation involves direct communication between the parties involved in the conflict,
with the aim of finding a mutually acceptable solution. Mediation involves a neutral third party who
helps to facilitate communication and negotiation between the parties. Arbitration involves a neutral
third party who hears evidence and makes a binding decision to resolve the conflict. Litigation
involves resolving a conflict through the legal system.
It is important to address conflicts in a timely manner and to use an appropriate approach that meets
the needs of all parties involved. Effective conflict resolution can lead to improved relationships,
better decision-making, and increased cooperation and understanding.
5 BEST PRACTICES OBSERVED IN THE ORGANIZATION
41
1. 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. The mentors as well as the colleagues are
always ready to sort out any problem that the intern could not resolve on their own.
2. Everyone is disciplined and dedicated towards their jobs, thus provides motivation to do our jobs
perfectly and to learn and grab as much as we can. The perfect competitive environment always
motivate to excel in our job responsibility and to perform better then we are performing.
3. 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.
4. The employees are always energetic and ready to do work; they don’t waste their time. They
always strive for excellence in their work. Even if the proprietor is not at the office they don’t
skip work hours.
5. The proprietor is really good at customer handling, he is always too humble towards the client
even though if the clients are in bad mood or tempered, he never losses 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.
CHAPTER-7
42
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/ recommendation are :
1. They have good opportunity to introduce the ISO standard training program which no other firm is
giving to customer.
2. Try to adopt new technologies that their competitors are not using.
3. Make a network that allow its customer to negotiate with them easily.
4. The local economy continues to be strong and we believe our typical clients will continues to
flourish.
5. The company as mostly professional educated human resources, which are the biggest threat to their
competitors.
6. The partner need to make the best use of their goodwill to bring more client and reputation to firm.
They need to offer the audit services at most economical cost with the assured quality services to
retain and expand client.
7. The infrastructure an working condition review can improve the working efficiency of the trainee.
Audit and Assurance is the tough job. Some motivational meeting and mentoring exercises would
bring good feel among employee for their work. Time to time financial bonuses or performance
incentive will energize the staff.
8. The trainees are not offered extra financial or any other incentive for the extra work or over time.
This causes some sort of abstraction which immediately need to be overcome by the management.
9. 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 firm have their own web and well organized.
10. Firm also lacks in marketing perspective as it does not any marketer to market and introduced their
business, firm is getting business only on personal relation of the partner and other firm personnel.
So if firm want to improve its business volume it need a professional marketer as many other big
firm wants to improve
its business volume it need a professional marketer as many other firm as adopted.
CHAPTER-8
43
CONCLUSION
1. Zeal Co-Team Pvt Ltd is overall one of the profits making and reputed firm of earth. The
organization since it very first day is devoted to providing quality services. the detailed and
through review of work and clients trust show the perfection with which it is working.
2. The institute of chartered Accountant 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.
3. According to me its very fun and enjoyment to work in firm.
4. High quality financial reporting plays an important role in promoting the integrity and reliability
of the financial information that is the lifeblood of our capital markets.
CHAPTER-9
44
REFERENCES
1. Audit manual, & Chartered Accountants.

2. www.google.com
3. www.icai.org/
4. http://enwikipedia.org
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Internship Based Project

Under the Guidance of

Affiliated to University of Mumbai

Mr. Kaushik .B.Migwal

I would like to acknowledge the following as being idealistic channels and

I take this opportunity to thank the University of Mumbai for giving me

I take this opportunity to thank our Course Co-ordinator, Prof. Mamta

I would also like to express my sincere gratitude towards my project guide

I would like to thank my College Library, for having provided various

CHAPTER-2 FIRM PROFILE

CHAPTER- 3 AUDIT PROCEDURE IN INDIA 3.1 AUDIT

CHAPTER- 5 JOB DISCRIPTION

TDS RETURN PREPARATION.

CHAPTER-6 LEARNING PART

ORIGIN OF THE REPORT

OBJECTIVES OF THE STUDY

a. Background of the host organization and also their position.

Methodology of collection of information

Primary source information.

Secondary sources information

Limitations of the study

1.Profile of the firm 2.Background

Profile of the firm

Name of the firm : Zeal Co-Team Private Limited

Date of Registration: 7-7-2018

Profile of CA HARIOM DHANANJAY PANDEY

1. Assistance in maintenance of necessary books of accounts of the company.

3. Finalization of Accounts on monthly, quarterly, half- yearly & annual basis.

4. Translation of foreign currency transactions into INR and accounting thereof.

AUDIT PROCEDURE IN INDIA

1. General definition of audit process and procedure.

General definition of audit process and procedure

The audit process typically involves the following steps:

In conclusion, company registration is an important step in establishing a legally recognized and

The following is a brief overview of the ROC filing process in India:

The following is a brief overview of the statutory audit process:

The following is a brief overview of the tax audit process:

The following is a brief overview of the internal audit process:

Different task that I performed during my internship: -

Software used during internship: -

In India, the following types of income are subject to TDS:

Commission Income: TDS is deducted on commission income at the rate of 10%.

Dividend Income: TDS is deducted on dividend income at the rate of 10%.

Insurance Commission: TDS is deducted on insurance commission at the rate of 5%.

OVERVIIEW OF VOUCHER ENTRY

The voucher entry process typically involves the following steps:

OVERVIEW OF PREPARING BOOKS OF ACCOUNT IN TALLY

To prepare books of account in Tally, you need to follow these steps:

The GSTR 2B form contains the following details:

Details of the supplier, including the GSTIN and name

OVERVIEW OF BANK ENTRY

Step 1: Recording Transactions

Step 3: Saving the Entry

Step 4: Verifying the Entry

OVERVIEW OF SALE ENTRY

OVERVIEW OF DEBTOR RECONCILIATION

Reasons for Reconciling Debtor Accounts

Steps to Reconciling Debtor Accounts

OVERVIEW OF BANK RECONCILIATION

OVERVIEW OF CREDIT NOTE

Date of issue of the credit note.

Description of the goods or services supplied.

Reason for issuing the credit note.