CONTENTS

SR .NO. PARTICULAR PAGE

NO.
1. INTRODUCTION OF STUDY 7
2. OBJECTIVES OF STUDY 8

3. SCOPE OF STUDY 9

4. IMPORTANCE OF STUDY 10

5. COMPANY PROFILE 11

6. RESEARCH METHODOLOGY 19
7. LIMITATIONS OF THE STUDY 27

8. TDS 29

9. TCS 57

10. DATA PRESENTATION AND ANALYSIS 61

11. FINDING 72

12. SUGGESTION 74

13. CONCLUSION 76

14. BIBLOGRAPHY 78

1
 INTRODUCTION OF STUDY

TDS is indirect tax which is collected from the people at the time of
payment like salary, rent, commission etc. The TDS collected is then
transferred to government account. The full form of TDS is Tax Deducted at
Source. The Central Board of Direct Taxes (CBDT) governs the provision of
TDS under income tax act.

1961. The deductor is referred to the person deducting the tax, and deductee
is the person from whom tax is deducted TDS payment made at a specified
rate prescribed.
No tax is deducted in case the amount doesn’t exceed specified limit.

TDS is compulsory and convenient method of tax payment during the

generation of income itself. Such collection tax has an effect at the source
when income arises or due. This is the tax which deducted at the time of
making payment of expenditure and paying to the income tax department i.e.,
government (through bank) within stipulated time on behalf of the person to
whom payment is made. Tax shall be deducted at the time of crediting that
person's account or at the time of payment of such expenditure in cash or by
way of a cheque or by any other mode which is earlier.

2
 OBJECTIVES OF STUDY

• To understand the Tax Deducted at Source (TDS) process, which

comes under the income tax act 1961

• To know the various types of taxes deducted and deposited by the

company

• Getting a more practical insight into the TDS return filling process.

• To understand the practical application of taxation concepts like

tax deducted at source, tax collected at source, section 43b.

3
 SCOPE OF STUDY

The concept TDS isas introduced with an aim to collect tax from
the very source of as per this concept a person (deductor) who is liable
to make payment of specified nature of any other person (deductee)
shall deduct tax at source and remit the same into the account of the
central government.

A deductor has to deposit the deducted TDS to government and

details of the same has to be filed in the form of TDS return, A TDS has
to be filed quarterly.
Different type of TDS deduction has to be filed using different TDS
return forms.

TDS is one of advance tax, It is a tax that is to deposited with

government periodically and the doing the same on time lies nth
deductor. For the deductee, the deducted TDS can be claimed in the
form of tax return after file their Income tax return.

4
 IMPORTANCE OF STUDY

 TDS is due at the time of making payment.

 TDS payment should be made on or before the 7th day of

next month In which It is deducted

 Late filling of TDS return attracts late filing fees Rs. 200
per day u/s 234(e).

 TDS u s 1941A is deducted from seller contribution a

buyer cannot claim refund of TDS deducted.

 As tax deduction takes place throughout the year, It

ensures a continuing flow of revenue to the government.

 It is a measure to prevent tax evasion.

 It helps in increasing the tax reach as it is deducted at the

time of payment itself preventing the commitment of
fraud.

6
 COMPANY PROFILE

 HISTORY

 PROFILE OF FIRM
INTRODUCTION WORK OF ORGANIZATION

 FOUNDERS AND PROMOTERS

DETAILS OF PARTNERS
STAFF DETAILS

 MISSION, VISION, VALUE STATEMENT

MISSION STATEMENT
VISION STATEMENT
VALUES

 FOCUS FUNCTION

 SERVICES PROVIDED BY THE FIRM

6
 HISTORY

We are an Indian chatted accountant firm based in

Sharanpur road Nashik. We provide all sort of charted
accountant service related to accounting auditing, income tax
export consultancy. GST registration, GST returns, Transfer
pricing related matter etc. In order to meet the specific
requirement of the client. We provide the best possible solution
and consultancy for their respective matters with the active
support we receiver form our competent team of professional.
We have managed to provide the effectives services to our
various esteemed client.

We are the proud of the history of the firm. The firm start
up as on 1st April 1989 in India Nashik.

7
 PROFILE OF FIRM

Name of the Firm M. H. Joshi & Co., Chartered

Accountants
Name of a Partner
Shri. CA. Mandar Milind Joshi
Address
M. H. Joshi & Co., Chartered
Accountants, Saraswati Niwas, Off
Sharanpur Link Road, Opp. Sant
Andrews Church, Nashik, Maharashtra
Age 422005.

Educational Qualification 32 Years

Permanent Account Number F.C.A. (Fellow Chartered Accountant)

Membership No of Above Partner AAGFM3862J

Registration No. of Firm with 157274

ICAI:
104408W
Date of Establishment 1st April 1989

E-Mail
sanmyak@gmail.com
Nature of Business
Practicing Chartered Accountants with a
Registered Partnership Firm Since 1989.

9
 INTRODUCTION WORK OF ORGANIZATION

M. H. Joshi & Co. Chartered Accountants work in wide range

of business sectors and in board spectrum of roles, from chief
executives to financial controller. Below are the few examples
of the type of position that chartered accountant occupy.

Tax Accountant

Management Accountants

Financial Accountants

Budgets Analysts

Auditor

9
 FOUNDERS AND PROMOTERS

* DETAILS OF PARTNERS *
DATE OF
NAME OF PARTNERS QUALIFICATION
ENROLLMENT

Milind Harishchandra
F.C.A. 30th April, 1986
Joshi

Mangesh Harishchandra
F.C.A., C.I.S.A. rt April, 1989
Joshi

Mandar Harishchandra
F.C.A. 19th July 2013
Joshi

* STAFF DETAILS *

PARTNERS 3

CHARTERED ACCOUNTANTS 8

ARTICLES 7

OTHER ASSITANT STAFF 6

TOTAL 24

RESEARCH METHODOLOGY

Research methodology refers to scientific procedure for the

acquisition of knowledge based on empirical observation and logical

10
reasoning. The aim of research methodology is merely collection
analysis and interpretation of facts in the most systematic and objective
manner. Thus, the aim of methodology is limited and subservient.

Research Methodology is the way to systematically solve the

research problem. It may be understood as a science of studying how
research is done scientifically. In this we study the various steps that
are adopted by the researcher in studying his research problem along
with the logic behind them. It is necessary for the researcher to know
not only the research methods but also the methodology.

All this means that it is necessary for the researcher to design his
methodology for the problem as the same may differ from problem to
problem.

"Research is a method of studying, analysing and

conceptualizing social life in order to extend, modify, correct or verify
knowledge whether that knowledge aids in construction of theory in
practice of an art".
According to P V Young

"Research is the search for knowledge." Research Methodology

is the method used of collecting data through various sources as well
as analysis and interpretation of data. It has always been important
essential to adopt certain pre-decided method to study any particular
system.

In order to collect the required information following methods were

adopted.

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 DATA COLLECTION

Data collection is a very important activity in the task of any

research and the quality of data collected affects the results.
Data or facts may be derived from several sources.

12
 LIMITATIONS OF THE STUDY

 Use of ERP system was a limitation for learning the

accounting procedure.

 Limited data received due to company norms.

 Having not studied taxation in depth before, made it at

times difficult to understand concepts.

 As the subject of taxation is so vast, it is difficult to

understand whole taxation in a short duration of
training period.

 At times, the employees were busy with their own

work which made it a bit difficult for me to get my
doubts cleared.

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 TAX DEDUCTED AT SOURCE

Assessee pays tax in the assessment year on the income

earned in previous year. Due to this rule the tax collection is
delayed till the completion of the previous year. Even
sometimes people conceal their income, and the tax is not paid
at all. In order to overcome these problems, government started
deducted some amount of tax from the amount which is
receivable by the assessee. The amount of tax so deducted is
called as Tax Deducted at Source, i.e., TDS. TDS is deducted by
the person paying the income to him. Thus, the tax is deducted
at the source of income itself. Although it is worth mentioning
here that whole of tax is not deducted at the source but only a
certain part is deducted. In some cases, it may also get excess
while in other cases it may be less than the total tax liability.
However, in case of salary the total tax liability can be deducted
at source itself. The intention behind TDS is fast collection of
tax and to avoid tax evasion, by concealing income.

16
 TAX COLLECTION AT SOURCE (TCS)

Tax collection at source arises on the part of the seller of goods. Here, tax
is collected at the source of income itself. It is to be collected at source
from the buyer, by the seller at the point of sale. Such tax collection is to
be made by the seller at the time of debiting the amount payable to the
buyer to the account of the buyer or at the time of receipt of such amount
from the buyer, whichever is earlier. A person collecting tax shall furnish
a certificate specifying whether tax has been collected or not what sum
has been collected the rate of tax applied on it and other such particulars
as may be prescribed. It shall be furnished within 10 days from the date
of debit or receipt of the amount furnished to the buyer to whose account
such amount is debited or from whom such payment is received. The
taxes collected must be remitted into the income tax department's
account. Every person collecting tax shall, within such time as may be
prescribed, apply to the Assessing Officer for the allotment of a tax-
collection account number.

The following goods when sold must be subjected to tax collection at

source:

Alcoholic liquor for human consumption (other than Indian made

foreign liquor).
Timber obtained under a forest lease.
Timber obtained by any mode other than under a forest lease.
Any other forest produce not being timber.

16
 COMPARISON CHART

Basis for
TDS TCS
Comparison

TDS implies the amount TCS refers to an amount

Meaning deducted from the recipient's accumulated by the seller
income in the form of tax. or company as tax

Nature Expense Income

Specified expenses cross the Sale of specified items is

Imposition
prescribed limit. made.

Responsible
Deducted by payer or buyer Collected by payee or seller
person

Crediting the account of Debiting the account of

the payee or during the buyer or during
Occurrence
payment, whichever is receipt, whichever IS
earlier. earlier.

17
CASE STUDY

META CHEM PAINTS & ADHESIVES PVT LTD

INTRODUCTION

Meta-chem Paints and Adhesives Private Limited is a Private

incorporated on 24 August 2006. It is classified as non-govt
company and is registered at Registrar of Companies Mumbai. Its
authorized share capital is Rs. 5,000,000 and its paid-up capital is
Rs. 2,535,000. It is moved in Manufacture of other chemical
products.
Meta-chem Paints and Adhesives Private Limited's Annual
General Meeting (AGM) was last held on 15 November 2021 and
as per records from Ministry of Corporate Affairs (MCA), its
balance sheet was last filed on 31 March 2021.

Directors of Meta-chem Paints and Adhesives Private Limited

are Sabita Vishwanath Panja, Bishwanath Panchanan Panja

18
 HISTORY OF COMPANY

The company was incorporated in the year 1994 for the

manufacture of speciality surface coating material like
Anticorrosive Coating, Waterproof Coating, Floor coating etc. The
company had ventured into this field despite the presence of big
multinational giants like Asian Paint, Goodlas Nerolac etc. This
was a daunting task in the beginning.
In the year 2006 they converted the original company Meta-
Chem Paints & Adhesives into a Private Limited Company. Now
for all types of Thermoplastic Polymer Coating / Paint and All
Paper Coating Materials, they operate from Meta-Chem Paints &
Adhesives Pvt. Ltd. having Registered office at plot.no. G-34/3,
MIDC, Satpur, Nasik — 422007, Maharashtra, India.
For commercialization of the developed technology, Company
is awarded with "BHARATIYA UDYOG RATAN AWARD" in
the year 2012.

19
 FINDING

Meta-chem Paints and Adhesives Private Limited is

following all the statutory compliances under relevant tax
TDS under Income Tax Act.
The company is deducting tax amount at the applicable
tax rates and depositing account on or before the due
date.
Tax is submitted online and not manually.
All the returns are filled timely.

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 SUGGESTIONS

1) Training regarding how to use the Winman software.

2) Employees should be educated on how to plan their tax filing and reduce
their tax liability.

3) Since tax rules and regulations change almost year, employees must be
made equipped with knowledge to ensure they are up to date with the latest
amendments made.

4) Employees must be helped on keeping the necessary documents ready for

tax filing

5) Constant review of performance should be made to evaluate the actual

results as compared to budgets so that corrective action can be taken at the
right time.

6) This is with reference to variance analysis.

7) Deduction of TDS on time and payment of the same to the Central

Government before expiry of the due date.

21
 BIBLOGRAPHY

Books and Journals

l. Annual Report 2020-21
2. Tax Audit 2020-21

Websites
www.taxguru.com
www.wikipedia.com
www.futureaccounting.com
www.1ncometax.com

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THANK YOU