SUMMER INTERNSHIP PROJECT REPORT ON “ACCOUNTS & FINANCE” AT (RISHIKESH) Ox Summer Training Project Report Submitted in the partial fulfillment of B.Com(Hons.) V SEMESTER SWAMI RAMA HIMALAYAN UNIVERSITY HIMALAYAN SCHOOL OF MANAGEMENT STUDIES (Batch 2017-2020) MENTOR: - SUBMITTED BY: - Mr. Sandeep Badoni TANYA REKHI HSMS, SRHU Reg. No: - DD1712302054 ' Enrollment No: - $RHU17000434CERTIFICATE This is to certify that the Summer Internship Report entitled “Accounts & Finance, Direct & Indirect Taxation” by “Tanya Rekhi” 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. Mr. Sandeep Badoni Assistant Professor HSMS, SRHUTraining Completion certificate from the organisationDECLARATION BY THE STUDENT Dated: - 12-August-2019 This is to certify that the present Summer Internship Report entitled * ii i i ion” is my original work. This Summer Internship Report fulfils the requirement of the “B.Com(Hons.)” degree of this University. It does not form the basis for the award of any degree or diploma from any other university or institution. Tanya Rekhi (B.Com(Hons.) V Sem) Reg. No: - DD1712302054 Enrollment No: - SRHU17000434ACKNOWLEDGEMENT I would like to express my deepest appreciation to all those who provided me the possibility to complete this report. | have taken efforts in this project. However, it would not have been possible without the kind support and help of many individuals and the organization. A special gratitude | give to our project manager Mr. Shekhar Chandra and my college mentor Mr. Sandeep Badoni whose contribution in stimulating suggestions and encouragement, helped me to coordinate my project specially in writing this report. Furthermore, I would also like to acknowledge with much appreciation the crucial role of the staff, who gave the permission to use all required equipment and necessary materials throughout the period. Last but not least, my thanks go to the head of the project Mr. Shekhar Chandra who have invested his full effort in guiding the team in achieving the goal. I have to appreciate the guidance given by the other supervisor as well as the panels especially in our project presentation that has improved our presentation skills thanks to their comment and advices.Index 1, CHAPTER I: Introduction 1.1. Introduction of Organization Business Sector... . About the Industry Mission and Vision 1.2. Organizational Structure 1.2.1, Organizational Structure 1.22. Top 11 CA Firms in India 1.3, Competition Overview (20 Firms)... . CHAPTER 2: Company Profile... 2.1, About the Company 2.1.1. Departments of CA Company 2.2, Services Offering 2.3. Audit... — CHAPTER 3: Conceptual Discussion... 3.1, Objective of the Study 3.2, Job Description 3.3, Overview of TDS. 3.3.1. TDS Returns 3.3.2. Process Flow of TDS. 3.4. Overview of Vouching. 3.5, Preparation of books on Tall: 3.6. Preparation of Partnership Deed 3.7. Overview of VAT... 3.8. Overview of Tally ERP9. 3.10 AS 26 Intangible Asset: 3.11 Overview of Auditing .. 3.12 Overview of GST... 3.13 Overview of Taxati4, CHAPTER 4: Work and Research. 4.1, Description of accomplished work in Organization 4.2. Description of Research under the supervision... 4.2.1. Taxation CHAPTER 5: Learning, Conclusion & Suggestions. 5.1. Behavioral Learning From Organization 5.2. Suggestions and Recommendations..... CHAPTER 6: Bibliography ...sesesessesserseseenserearenenrtnetnsertee TS-76 6.1. References... 76,CHAPTER 1 INTRODUCTIONINTRODUCTION OF THE ANIZAT *S BUSINE: ECTOR: 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. ICAL is governed by the Council which consists of nineteen members. Fifteen members are elected from amongst the members fora 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.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. ion of ICAI The profession of Chartered Accountants in India should be the benchmark of professional excellence upholding the principles of integrity, transparency and accountability.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.Top 11 CA firms in Indi 1, Deloitte; - Deloitte, in terms of Revenue, is the largest professional services network in the world. Also on the basis of a number of professionals, it is the largest professional services network in the world. Deloitte is known for providing audit, tax, consulting, enterprise risk and financial advisory services to more than 200,000 professionals in over 150 countries. They are the Advisors to many of the World’s most admired Brands. The Consulting services of industries. work on the theory of ‘Providing practical perspectives and solutions to queries.’ Deloitte believes in*Good to make it great!’ They believe in ‘helping clients to become Leaders’. 2. PWC: - Price Waterhouse Coopers has been the world’s second largest professional services network in terms of Revenue as surveyed in 2014 and is one of the Big Four Auditors and stands neck to neck with Deloitte, EY and KPMG, The Firm believes in helping resolve complex issues and identifies opportunities. People from all backgrounds such as arts, business, economies, engineering, finance, health, information technology, law and more are entertained.3. KPMG: - Having its global headquarters in Amstelveen, Netherlands, KPMG has. been considered as one of the largest professional services companies in the world, It is amongst the Big Four auditors, standing along with PWC, Deloitte and EY. The professionals employed with this firm, KPMG is 162,000. people and performs three services, viz. audit, tax, and advisory, The tax and advisory services provided by the firm are further divided into various service groups. 4, Ernst & Young: = Emst & Young abbreviated as EY is a multinational professional services firm having its headquarters in London, United Kingdom. In terms of Revenue, it has been ranked as the world’s third largest professional services firm surveyed in 2012 and is one of the four biggest audit firms. ll EY 2 Ernst & YOUNG5. BDO International: - BDO International stands at the fifth rank for providing the largest accountancy network in the world. It is a worldwide professional services network and one of the best public accountancy firms. It has its competency is in serving national and international clients. Following a survey conducted in 2014, September, BDO has its Member Firms in 151 countries and takes pride in employing around 60,000 Partners and staff in 1,328 offices throughout the world. 6. ul mn Init Grant Thornton is a UK based firm which has its branches in almost 125 countries. This firm is known for generating very high revenue which is more than 4.5 billion dollars. It is providing services in assurance, tax and advisory firms. Grant Thornton is also known for providing services in Assurance and Taxation and other consultancy services relating the financial matters. It has been operating for 100 years. Grant Thornton has provided valued service to organizations with the potential to grow and to operate internationally. It makes the professionals adapt to market conditions and deal with complex events or transactions. The member office of Grant Thornton is situated in Connaught Place in. New Delhi. © GrantThornton7. RSM International: - RSM ranks the 7th largest among the professional services network for audit, tax and advisory firms. It takes pride in holding the 6th rank as the largest global provider of tax services in the world. It has its fully independent member firms and correspondents in 111 countries surveyed, September 2014. The member firms of RSM International have a combined total of 35,396 staff which includes 3,221 partners in 718 offices. Three of the original member firms of the organization are Robson Rhodes (UK), Salustro Reydel (France) and RSM McGladrey/McGladrey & Pullen (USA). 8. SS Kothari, Mehta & Co.:- The best thing about this Firm is that it has over 55 years in existence. SS Kothari has been one of the highly reputed firms in Delhi and has its branches in 100 other countries. It has created a strong National presence through a network creation of 6 offices and 20 associates which covers almost all the regions of the Country. With a combination of Partners and Associates, it has covered almost all the parts of the country. It offers services in BPO, Tax Advisory Services, Merger and Acquisition, Statutory Audit Services, Corporate Laws and other different areas. 5 5 HOTHAAI MEHTA & CO CHARTERED ACCOUNTANTS9. Lodha & Co.:- This is also a vintage firm set up in 1941 and has its offices all over India. They operate in locations like Kolkata (Calcutta), Chennai (Madras), Hyderabad, Mumbai (Bombay), New Delhi and Jaipur. Lodha & Co, has proficiency in providing professional services to a large number of corporate clients, central banks, banks, insurance companies, public sector corporations etc. They operate both in India and Internationally. Lodha & Co 10. ni Natraj Bah SNB is a national Indian firm which is based in Delhi and provides its services in the field of audit, consulting, accounting and allied areas, It was established in 1981 and is one of the leading Firms in India having its Headquarters in New Delhi and branch offices in Bangalore and. Mumbai. The Firm has keptits Aim for providing services of the highest quality, resulting in the addition of value to each of its clients in a totally professional, independent and ethical manner. It is known for providing services in various areas like Taxation, Auditing and Internal Audit, Corporate Laws and several other services relating to services. Acig valvo fo your basinessIk. hra Luthra & Luthra is a Delhi-based firm having six other partners. The Firm was established in 1979, Ithas been one of the most leading firms in India and has been providing. its services in audit, advisory, tax and corporate law matters. It is bound to provide high-end services to its clients. The success of Firms depends on its professionals, thus the Firm focuses on training its employees such that they could find solutions to the various needs and queries of its clients and thus, achieving the Organizational goals. It has its branches in Delhi, Mumbai, Bangalore, ‘Chennai and Noida. This firm is known for providing its service in different fields like Taxation, Corporate Laws, Foreign Exchange Compliance and SEB] related services in cooperation with 18 highly qualified personnel. ——F = —— —= E = — Luthra & LuthraCOMPETITION OVERVIEW OF CA FIRMS BY REVENUE (30 FIR ‘YEAR END UK REVENUE (EM) 30/06/18 3760 31/05/16 3.580 30/06/17 2.350 30/09/17 2183 30/06/17 4999 20/06/18 4611 3103/18 aad 30/04/18 267 sn2T 1977 a1oa/ie 181.8 31/05/18 16356 Isatfery Champness 31/03/18 8687 Haines watts Group 31/03/18 a4 lcrowe Uk 31/03/18 Dita Macintyre Hudson 203/18 Hwakins Kennedy 30/04/18 FAP Advisory 3oroanne leeqbies Traynor 30/04/18 30/naris 30/04/18 30/06/18 Bvt 30/09/17 30/0anne Hoysmacintyre av0ane 30/048 rice Baitey 3103/8 Jasmstrong Watson 31/03/18 2705/18 3103/18CHAPTER 2 COMPANY PROFILEABOUT THE NY Shekhar CA & Co. is a leading chartered accountancy firm. It is rendering comprehensive professional services which include audit, management consultancy, tax consultancy, accounting services, manpower management, secretarial services etc. It is a professionally managed firm. The team consists of distinguished chartered accountants, corporate financial advisors and tax consultants. The firm represents a combination of specialized skills, which are geared to offers sound financial advice and personalized proactive services. Those associated with the firm/have regular interaction with industry and other professionals which enables the firm to keep pace ‘with contemporary developments and to meet the needs of its clients. Shekhar CA & Co. has a clear vision for the future growth and development of financial markets and services and researches to stay ahead of these trends and developments. Shekhar CA & Co, moulds its ‘operations and areas of competencies and introduces services so as to assist clients in their business operations and growth.DEPARTMENTS OF CA MPANY Shekhar CA & Co. is having its head office in Rishikesh. Almost all the controls and regulations are dealt at head office in Rishikesh. 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 oras 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.» 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. Fax advisory services. Representation and litigation with tax authorities. Personal income tax services. In Shekhar CA & Co. same staff is handling with tax matters as well as corporate sector. While in corporate firm provides different kinds of services relating to corporate sector from incorporation to winding up of a Company. >» Computer Department: - Department handles the computer related matters and assists other departments in working properly and efficiently. Department deals with online filing of returns of income for tax department and finalize audit reports in proper format in a presentable manner. It deals with networking of computers in office and all other problems which may be faced by computer users time to time.> 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 Shekhar CA & Co, is in accordance with the legal structure a CA firm shall have. Although the ICAI rules permit of not having the supervisors and does not make it mandatory having, senior manager and manager, yet this goes as additional benefit for the firm of having such an extensive hierarchy.RPORATE SER ® 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.SERVICES OFFERI > 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.» 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 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 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. 15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 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.UDI Broadly, Audit involves the following: > In-depth study of existing systems, procedures and controls for proper understanding. Suggestions for improvement and strengthening. » Ensuring compliance with policies, procedures and statutes. » Comprehensive review to ensure that the accounts are prepared in. accordance with Generally Accepted Accounting Policies and applicable Accounting Standards/IFRS. > Checking the genuineness of the expenses booked in accounts. > Reporting inefficiencies at any operational level. » Detection and prevention of leakages of income and suggesting corrective measures to prevent recurrence. » Certification of the books of account being in agreement with the Balance Sheet and Profit and Loss Account. ® Issue of Audit Reports under various laws. Types of Audits conducted: - » Statutory Audit of Companies. > Tax Audit under Section 44AB of the Income Tax Act, 1961. > Audit under other sections of the Income Tax Act, 1961 such as 80HHC, 80-1A, ete. » Concurrent Audits. > Revenue Audit of Banks. » Branch Audits of Banks. > Audit of PF Trusts, Charitable Trusts, Schools, etc. > Audit of Co-operative Societies. > Information System Audit. » Internal Audits.CHAPTER 3 CONCEPTUAL DISCUSSIONOBJECTIVES OF STUDY I choose to work with Shekhar CA & Co, During this internship I have learnt many new skills. Before internship | have only theoretical knowledge about work in organization but now | 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 | 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 knew 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. > Assist the student development of employer-valued skills such as teamwork, strong communication and attention in details. 23» 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.JOB DESCRIPTION I have tried my best to enhance my abilities and apply the knowledge that | gained during the studies. On my first day at firm, company in- charge Mr. Shekhar Chandra gave me training session about TDS returns and computerized accounting in tally software and also shared his practical experience with me and gave me some techniques of this process. He also guided me that how to prepare VAT/GST return and filing data in income tax return preparation software, Different task that | 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Ove w 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: v Salary Interest and dividends. Winnings from the lottery. Insurance commission. Rent. Fees from professional and technical services. Payments to contractors and subcontractors. VVV VV Vv 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 (RISHOA) or Form 26Q-P2P-IND (R751122EQ). 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 chalfan for the tax deposited to the Income Tax Department (ITD).» TDS RETURNS: TDS is a system whereby the income tax is deducted at the time of making some payments like rent, interest, commission ete. 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 ofa 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.> 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 == la Issue payments to suppliers with TDS. amounts deducted q Submit monthly payment for TDS to tax authority Update Challan Generate monthly statements and submit quarterly and annual returnsW. HI 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.PREPARATION ON KK Following are the books that were made in tally: 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PREPARATI RT HIP DEED In this, we prepare the partnership deed of different persons, in which different rules and regulations we mentioned according to the law. A. partnership deed also known as partnership agreement, is a document that outlines in detail the rights and responsibilities of all parties to a business operation. It has the force of law and is designed to guide the partners in the conduct of the business. It is helpful in preventing disputes and disagreements over the role of each partner in the business. and the benefits which are due to them. The parinership deed normally carries the name of the business, the address of its principal place of business-and a short summary of the business the partners intend to operate. Q.How to prepare a partnership deed in India? When registering a partnership firm in India for startups, there are some basics that need to be covered. Partnership and proprietorship are the two most popular forms of business organisations in India. The reason why these two forms of organisations are so popular is because they are relatively easy to set-up and the number of statutory compliance requirements needing to be followed by these forms of organisations is relatively less than the statutory compliance requirements applicable to LLP’s and companies. As such, this article focuses on the registration process for the partnership firm. > Choose a partnership name: - The partners are free to choose any name as they desire for their partnership firm subject to the following rules: 1. The names must not be too identical or similar to the name of another existing firm doing similar business, so as to avoid confusion, The reason for this rule being that the reputation or goodwill of a firm may be injured, if a new firm could adopt an allied name.2. The name must not contain words like Crown, Emperor, Empress, Empire or words expressing or implying the sanction, appreval or patronage of the Government, except when the State Government signifies its consent (in writing) to the use of such words as part of the firm name. > Create a Partnership Deed: - The document in which the respective rights and obligations of the members of a partnership is written is called the Partnership Deed. A partnership deed agreement may be written or oral. However, practically an oral agreement does not have any value for tax purposes and therefore the partnership. agreement should be written, The following are the essential characteristics of a partnership deed: >» Name and address of the firm as well as all the partners. > Nature of business to be carried on. » Date of commencement of business. > Duration of partnership (whether for a fixed period/project). > Capital contribution by each partner. > Profit sharing ratio among the partners. ® The above are the minimum essentials which are required in all partnership deeds. >» Consider whether additional clauses are needed: - The partners may also mention any additional clauses. Some of the examples of additional clauses which may be mentioned in the partnership deed are mentioned below: > Interest on the partner’s capital, partners’ loan, and interest, ifany, to be charged on drawings. ® Salaries, commissions etc., if any, payable to partners. » Method of preparing accounts and arrangement for audit, » Division of task and responsibility, namely, the duties, powers and obligations of all the partners, > The rules to be followed in case of retirement, death and admission of a partner. 32> Do the partnership deed in the appropriate form: - The deed so created by the partners should be on a stamp paper in accordance with the Indian Stamp Act. Each partner should have a copy of the partnership deed. A Copy of the Partnership Deed should also be filed with the Registrar of Firms in case the firm is being registered. i i rshil = Partnerships in India are governed by the Indian Partnership Act, 1932.As per the Partnership Act, registration of partnership firms is optional and is entirely at the discretion of the partners. The Partners. may or may not register their Partnership Agreement. However, in the case where’ the partnership deed is not registered, the partners may not be able to enjoy the benefits which’a registered partnership firm enjoys. > Registration of a partnership firm may be done before starting the business or anytime during the continuance of partnership. However, where the firm intends to file a case in the court to enforce rights arising from the contract, the registration should be done before filing the case. The procedure for registration of a partnership firm in India is fairly simple/An application and the prescribed fees are required to be submitted to the Registrar of Firms of the State in which the firm is situated. The following documents are also required to be submitted along with the application: L. Application for Registration of Partnership in Form No. 1. 2. Duly filled specimen of Affidavit 3. Certified True Copy of the Partnership Deed. 4. Ownership proof of the principal place of business or rental/lease agreement thereof.> Sign the application: - The application or statement must be signed by all the partners, or by their agents especially authorised in this behalf. E registrati rocess to pr mally: ~ When the registrar is satisfied with the points stated in the partnership: deed, he or she shall record an entry of the statement in a register called the Register of Firms and issue a Certificate of Registration. The Register of Firms maintained at the office of the Registrar contains complete and up-to-date information about each registered. firm. » This Register of Firms is open to inspection by any person on payment of the prescribed fees; any person interested in viewing the details of any firm can request the Registrar of Firms for the same and on payment of the prescribed fees, a copy of all details of the firm registered with the Registrar will be given to the applicant. > Be registered for tax: - It should be noted that registration with the Registrar of Firms is different from registration with the Income Taxation Department. It is mandatory for all firms to apply for registration with the Income Tax Department and have a PAN Card. After obtaining a PAN Card, the partnership firm is required to open. a Current Account in the name of the partnership firm and to operate all its operations through this bank account.Vv Preparation of VAT returns At the end of the month or each quarter, you file a VAT return with the tax office, and remit the VAT due. > Prerequisites You have carried out the activities described in closing for VAT. > Process 1. You prepare a copy of the sales ledgerand the purchase ledger. The ledgers show the invoices that have been paid and on which VAT is thus due, The ledgers are for your own reference in the event of a check-up by the tax office. 2. You prepare the VAT return. This consists of two steps. I. You calculate the total amounts of VAT for each tax code. 2. You print the VAT return. The system fills out the fields in the VAT return using the totals that you calculated in the first step. 3. For information about preparing VAT returns for VAT withheld from vendors. 4, You file the VAT return with the tax office and remit the taxes,» Computer online software Tax Solution for professionals is to provide end to end management of every stage of the tax life cycle - from provision to estimates and extensions, returns, audit, amendment and planning. > A Solution For ¥ Income Tax Return ¥ TDS return © Service tax return ¥ Balance sheet & audit report ¥ VAT returns ¥ Checking of assessment orders ¥ ROC form and filling ¥ CMA ¥ AIR return ¥ Document Management ¥ Challan ¥ Allother required forms © Standard letters to clients Y Standard formats of departmental letters Y Office assistance works & mechanism. Y Various types of reporting.¥ Single switch board for all software. ¥ Common client information for all software. ¥ Searching of records by Code No., Name PAN, ete. ¥ Online auto-update of software. ~ Defining user rights with grouping facility. Y Password protection for individual clients. Y Activation/De-activation of individual party from particular/all software. ¥ Single window/screen to input, edit, view and print. ¥ Front-view buttons for easy understanding. ¥ User friendly similar layout of all software. v LAN compatible. ¥ Various data input validation checks to eliminate errors. ¥ Easy auto backup of your precious data. ¥ Option to access from anywhere inthe world. Q.What is VAT? Every commodity passes through different stages of production and distribution before finally reaching the consumer, Some value is added at each stage of the production and distribution chain: for instance, a forged metal tool is more valuable than metal, which was itself more valuable than the ore that was originally mined. Value Added Tax. (VAT) is a tax on this value addition at each stage. Under a VAT system, a dealer collects tax on his sales, retains the tax paid on his purchase and pays the balance to the government. It is a consumption tax, because it is borne ultimately by the final consumer. The tax paid by the dealer is passed on to the buyer. It is not a charge on the dealer. VAT is instead a multipoint tax system with provision for collection of tax paid on purchases at each point of sale.Q.What is Output Tax? ‘Output tax is VAT charged to the customer by a dealer making taxable sales. A dealer is an individual, partnership, or business that is registered under VAT. Any person or business making sales above the prescribed limit are required to register. When a dealer is registered, VAT becomes chargeable on all taxable sales made by that dealer. Q.What is Input Tax? The tax a dealer pays for purchases is input tax, Many purchases will carry a VAT charge, but when a dealer is registered under VAT, they can normally claim a credit for VAT charges on most business. purchases. Input tax includes not only the VAT on your purchases of raw materials or on goods purchased for resale but also VAT on capital goods, such as machinery or equipment. VAT Computation A dealer pays VAT by deducting the tax paid on purchases (input tax) from his tax collected on sales (output tax). In other words, VAT = Output Tax — Input Tax. For example: A dealer pays Rs.10,00 @ 10% on his purchase price of goods valued Rs.100.00. He sells the goods at Rs.150.00 and collects. tax amounting to Rs.15,00 (@ 10%). He will pay Rs.5.00 (Rs.15.00- Rs.10,00) as he has already paid Rs. 10,00 to his seller while purchasing those goods. Q.How is VAT different from Sale Tax? VAT has fewer rates, as opposed to the high number of rates for Sales Tax, and allows offsets of tax on inputs against those on outputs. VAT. also does away with the tax on tax,Q.Who will be covered by VAT? All business transactions involving the sales of goods/commodities. carried on within a state by individuals, partnerships, or companies will be covered by VAT. VAT will not cover small businesses with sales below a certain limit. In Maharashtra, the limit is 10 lakhs or below. Q.What are the tax rates under VAT? Since every state has its own VAT legislation, VAT rates, taxable base and list of taxable goods, VAT rates will differ from state to state. As an example, here are Maharashtra’s tax rates as of June 2016: Schedule “A’ — Essential Commodities (Tax-free) — Nil Schedule “B’ — Gold, Silver, Precious Stones, Pearls ete. — 1% Schedule “C’ — Declared Goods and other specified goods — 5% (Rates for items other than declared goods changed to 5.5%) Schedule ‘D’ — Foreign Liquor, Country Liquor, Motor Spirits, etc. — 20% and above Schedule *E’ - All other goods (not covered by A to D)— 12.5% starting April 1, 2016. Q. How does VAT help trade, consumers, and government? » Trade Uniform rates of VAT will boost trade; 100% self-assessment will reduce the need for taxpayers to visit a tax department officer. Co Removing tax on tax reduces prices of goods that the end consumer pays. > Government Since dealers will conduct self-assessment, the resources required for this process will be fewer, and the revenue department can. focus more on collection than administrative processes. 39Overview of Tally ERP 9 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. 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: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: Reealls 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). Account ‘Sip Dee aid Choate Mode fate at) Use Seng Eviry moe toi Pyrictontia Use PaymactRacge a2 Corrs Use CoDeentend of Ty ing etry Use Checue Ping fr Coa War en aque Caan Bates Pre-Atocate is er Payment Racist vein ‘Alo Cah Recent dota ‘Alow ExoenaeaF ued Aanete in Pechave Voucbers ‘Avon income Acceur Sales oven Adon saacion ot VATTax Cus dung ent ‘Show bmentory Ontos 7 Yes — Wam on Mhaenaich ie VAT Rates ‘Bow sl Chis Dette Pes etree Et ox EZ Taranctn (VAT) ‘Show Table of Bi tals ee Section + Yes ‘Shoe Baste Oats ote Ecgand eta mule bes Yee ‘Show Ledger Ciert Balances yes ‘Show Balan as on Voacbor Oats 2 Mo ‘Shox Faces SaivLoes a on Voucher Oats HoTo pass a Journal voucher with Cash/Bank Ledger, L. 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: are» 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, Esealation/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 F1I: 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 retumed to Supplier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. 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 Fl1; 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 F1I: 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 Cirl+F8. You can toggle between voucher and Invoice mode by clicking Ctrl+V, Pass an entry for goods sold returned from Customer A:1, ALT+R: Recalls the Lastnarration 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.AS-21 E Intangible asset is a non-physical non-monetary asset which is held for use in the production or supply of goods and services, or for rental for others, etc. As 26 should be applied by all enterprises in accounting of intangible assets, except: e Intangible assets that are within the scope of another standard financial assets. © Rights and expenditure on the exploration for or development of minerals, oil natural gas and similar non-generative resources. © Intangible assets arising in insurance enterprise from contracts with policyholders. Recognition and Initial Measurement of an Intangible Assets It applies when an item meets the criteria of an Intangible asset and it is probable that the future economic benefits will flow to the enterprise and the cost of the asset can be measured reliably. These recognition criteria are applicable to cost of acquiring and generating an intangible asset internally. Note: If an intangible asset is acquired separately, that should be measured initially at cost, which includes purchase price that includes import duty, non-refundable purchase taxes, after deducting trade discount and related direct cost. If an asset is acquired in a business combination, the cost of that asset should be its fair value at the acquisition date which depends on market expectations. When the asset is acquired free of charge or for a normal consideration, by way of government grant, then it is recognized at a nominal value or at the acquisition cost.RV) D 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 concer. 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. 47