Professional Documents
Culture Documents
Rahul Khurana Internship Report
Rahul Khurana Internship Report
Rahul Khurana Internship Report
REPORT ON
Rahul Khurana
BBA; 5th semester
Roll no:50124001720
ACKNOWLEDGEMEN
T
6. CHAPTER 6: Bibliography................................................................75-76
6.1. References.............................................................................................76
CHAPTER- 0l
INTRODUCTION
1
INTRODUCTION OF THE
ORGANIZATION'S BUSINESS SECTORS
2
MISSION & VISION
Mission of ICAI
Vision of ICAI
3
ORGANISATIONAL STRUCTURE
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.
4
Top 11 CA firms in India
1. Deloitte: -
I Deloitte. I
2. PWC: -
pwc
5
3. KPMG: -
6
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.
GrantThornton
7
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).
■-
RSI\A
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 I00 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.
'
S 5 HOTHRRI MEHTR CO
8
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 Inten1ationally.
N
Add,ngvalueto yovr business
9
11. Luthra & Luthra: -
Luthra & Luthra is a Delhi-based firm having six other partners. The
Firm was established in 1979.
It has been one of the most leading firms in India and has been providing
its services in audit, advisory, tax and corporate law matters. It is
bound to provide high-end services to its clients.
This firm is known for providing its service in different fields like
Taxation, Corporate Laws, Foreign Exchange Compliance and SEBI
related services in cooperation with 18 highly qualified personnel.
10
COMPETITION OVERVIEW OF CA FIRMS
11
CHAPTER 02
COMPANY PROFILE
12
ABOUT THE
COMPANY
13
DEPARTMENTS OF CA COMPANY
Shekhar CA & Co. is having its head office in Rishikesh. Ahnost 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: -
14
► Tax and Corporate Department: -
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: -
15
►Correspondence Department: -
►HR Department: -
16
CORPORATE SERVICES
► Incorporation of company
► Clause 49 review for compliance with fiscal, corporate and tax laws
17
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: -
► 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.
19
►Tally Accountin2: -
►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: -
►Internal Audit: -
20
AUDIT
21
CHAPTER 03
CONCEPTUAL DISCUSSION
22
OBJECTIVES OF STUDY
I choose to work with Shekhar CA & Co. During this internship I have
learnt many new skills. Before internship I have only theoretical
knowledge about work in organization but now I have practical som.e
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.
24
JOB DESCRIPTION
► 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.
► MS office
► Tally software
25
Overview of TDS
Tax deducted at source (TDS) is a tax that is deducted from income
that a company in India pays to a recipient or supplier if the income
amount exceeds a specific statutory limit in a financial year. The types
of income that are subject to TDS include:
► Salary
► Interest and dividends.
► Winnings from the lottery.
► Insurance commission.
► Rent.
► Fees frotn professional and technical services.
► Payments to contractors and subcontractors.
26
Overview of TDS
Tax deducted at source (TDS) is a tax that is deducted from inco1ne that
a company in India pays to a recipient or supplier if the income amount
exceeds a specific statutory limit in a financial year. The types of
income that are subject to TDS include:
► Salary
► Interest and dividends.
► Winnings from the lottery.
► Insurance comn1ission.
► Rent.
► Fees from professional and technical services.
► Payments to contractors and subcontractors.
26
the Income Tax Department (ITD).
27
► TDS RETURNS: -
All income is taxable only at the end of the financial year, hence the
government has instituted the concept ofTDS, in order to ensure:
28
► PROCESS FLOW OF TDS: -
This process flow shows the steps to charge and remit TDS: -
29
Overview of VOUCHING
30
PREPARATION ON BOOKS ON TALLY
►VOUCHER ENTRY: -
Tally provides flexibility to use predefined voucher types, comprising
of accounting and inventory voucher types to record various business
transactions. It also allows you to use Keyboard Shortcut Keys as well
as mouse operations during voucher entry.
To create a new Voucher Type,
30
PREPARATION OF PARTNERSHIP DEED
33
► Si2n the application: - The application or statement must be
signed by all the partners, or by their agents especially authorised in
this behalf.
► Expect the re2istration process to proceed formally : -
When the registrar is satisfied with the points stated in the partnership
deed, he or she shall record an entry of the statement in a register
ca11ed 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.
34
Overview of VAT
At the end of the month or each quarter, you file a VAT return with the
tax office, and remit the VAT due.
►Prerequisites
You have carried out the activities described in closing for VAT.
► Process
1. You prepare a copy of the sales ledger and the purchase ledger.
The ledgers show the invoices that have been paid and on
which VAT is thus due. The ledgers are for your own
reference in the event of a check-up by the tax office.
35
►Computer online software
► A Solution For
36
► Features
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.
37
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.
VAT Computation
A dealer pays VAT by deducting the tax paid on purchases (input
tax) from his tax collected on sales (output 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.
38
VAT also does away with the tax on tax.
39
Q.Who will be covered by VAT?
40
Overview of Tally ERP 9
► Journal Entry
Journal Vouchers are used to adjust the debit and credit amounts
without involving the cash or bank accounts. Hence, they are
referred to as adjustment entries.
l M11Za!I ND 1
-
li---,.a.nicutatt 0.blt C-n>dlt
Or A.QaltFNS 76.00000
C.,,&, T -.000,
C6 AuOlt FMS P'-,abl♦ 71J.000.00
Cur& t&.-.ooer
tlamsllOo 16-. - -
Ac••P'?
......Ho
40
SPECIAL KEYS FOR VOUCHER NARRATION FIELD:
► ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.
► CTRL+R: Recalls the Last narration saved for a specific
voucher type, irrespective of the ledger.
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 1n Journals to Yes m Fl2: Configure
(Voucher Entry Configuration).
J
· -' ,
VoueherEnuy Conflguredon
Aecounu lf\Wl\(Qry
Sl<ip Datt field 1111 Cteate Mocla 1fasw entrylJ ? Yes Use Ref IJm on StockJournal ? llo
UH S1 ! Ent,y mode for PymtRcri,Conlla ? Ye. Sllcw CompoonclUr.I of tem based on Rate ? llo
Use Pl,'Tl'ltnt R1tt1,:t as Cont,a ? tfo Show FuN Ott s of Compoolld Uruc ? llo
UH Cr Of 1n.ttid olToi81du1Ing tnlry ? tfo Wam 011 Jl r;t Slock 8ala11Ct ? Vts
Use Cllf qui Prll'll1f19 f01Contta ? tlo Honor EJ,.p,yOMcSUJJJ• rrx 8Jteh s 7 Ye.t
\,'{am on tleg::Jtffi! Cash Ba.!aice ? Ye, Shotoli Balances as on Voucher Date ? llo
Prt-Alhxilte 8,lh, for P.i)'ml!nl Racv,.t,Jo1am1I ? tlo Shov. Godo\m- se Del i; ?Yn
41
To pass a Journal voucher with Cash/Bank Ledger,
1. Go to Gateway of Tally > Accounting Vouchers > Select
F7: Journal
2. Press the spacebar at the Debit or Credit field.
The Journal Voucher Screen with Cash/Bank Ledger selection will
appear as shown:
! ' •
NO 1
AQYCllllJng
...,,.. . .-. cav.-L.ocacJonA
,..._...;.,....;;; =e=w= ='---------------------cm-1.ocauone
comp
e C oo,,ey.)nce
caooer Charge,
1
C Of'l\lerA
Detl<orA
Oericor B
Odl(orC
IN:l'<e!t Aecl!M!ble
UlOOur CIMges
I.MN! Co
LOcal OUly
L.«.ll PurCn.,,e
l.Dcal S&es
Posta1,1e
POR Dellta!>
Proles,lonJt Income
Profc»lanal St!MclS
Profit l l.OSSAle
Purthine
S.atM
SWIWCUlf
stat'.Ol'lety
S..,Pfllter,,.,
'l«Z.Cru1ers
42
►Debit Note Entry
Debit Note is a document issued to a party stating that you are debiting
their Account in your Books of Accounts for the stated reason or vice
versa. It is commonly used in case of Purchase Returns, Escalation/De•
escalation in price, any other expenses incurred by you on behalf of
the party etc.
Debit Note can be entered in voucher or Invoice mode.
You need to enable the feature in F11: Accounting or Inventory
features.
To use it in Voucher mode you need to enable the feature in Flt:
Accounting Features - Use Debit/ Credit Notes.
To make the entry m Invoice mode enable the option Fll:
Accounting Features - Use invoice mode for Debit Notes.
To go to Debit Note Entry Screen,
Go to Gateway of Tally> Accounting Vouchers
Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.
You can toggle between voucher and Invoice mode by clicking
Ctrl+V. Pass an entry for the goods purchased returned to Supplier
A:
r'
ji Y.2 11.j .f,i tH,".fiifJ j 1'1ii!h
t
1 01101--"'
I
Rrf
P •t tY ' t Ne N S-.pttli_., A
1 e v ,, -
he1n A SO tt♦a M •k S00.00
NltrllllOf"
Go.ti lvc •l♦d Nl•-d ,. Sus,pf,.. A.
..................'40
43
SPECIAL KEYS FOR VOUCHER NARRATION FIELD:
1. ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.
2. CTRL+R: Recalls the Last narration saved for a specific voucher type,
irrespective of the ledger.
Credit Note 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.
44
A. c a u nl Vo uc. . , C, N..,.. a.at C Clrl • W lj
• mn,.01Iii r o 1
Pel
N11T111o,in
G<>ods Jcld10Cuslomet A 1ttu,Md
Acupr?
.,
•1. ALT+R: Recalls the Last narration saved for the first ledger in the
voucher, irrespective of the voucher type.
45
AS-26 INTANGIBLE ASSETS
46
OVERVIEW ON AUDITING
47
►Auditin2 Standards
There are four main steps in the auditing process. The first one is to
define the auditor's role and the terms of engagement which is usually
in the form of a letter which is duly signed by the client.
The second step is to plan the audit which would include details of
deadlines and the departments the auditor would cover.
48
The next irnportant step is compiling the information from the audit.
When an auditor audits the accounts or inspects key financial
statements of a company, the findings are usually put out in a report
or compiled in a systematic manner.
► Audit Plannin2
49
OVERVIEW ON GST
► What is GST?
So, before Goods and Service Tax, the pattern of tax levy was as
follows:
e•CIeartax
Buying Raw
Materials
VAT --
'.
Sale to
Manufacture
WholesalerMtarehouslng
,
VAT+ Excise Duty
r
1 -- VAT
Final Sale to
Consumer - Sale to Retailer
I,
VAT
50
CHAPTER4
WORK &
RESEARCH
55
Description of process followed to accomplished the assigned
task in the organization
►Tally Entries
Following process are followed for accomplishment this task:
• Firstly, we review all records of vouchers carefully, that no any
vouchers had any queries related to adjustments.
• Then, we make a separate folder for that work.
• Then, we create a company in Tally software by that company name
and started doing entries.
• Receipts & Payment entries are posted carefully as it carries some
contra entries also.
• Then after completing entries posting recheck the data by Balance
sheet, Trial balances & Day book.
• Any queries related to this work communicated to our external
mentor.
►Auditin2
These steps were followed by us in auditing:
• Build an audit strategy.
• Verify that all outgoing checks were properly signed, accounted for
and posted to the correct accounts.
• Ensure that all deposits were properly posted.
• Review all financial statements.
• Ensure compliance with all state and federal requirements.
• Review all treasurers' reports.
• Complete the financial review worksheet.
• Suggest improvements to internal controls.
• Determine your audit opinion.
• Submit all documents to companies.
56
Detailed description of any specific
study/research conducted by you under the
supervision of your mentor(faculty), the
study should co-related with internship
functional area
58
TOPIC -
TAXATION
What is TAX?
A tax is a mandatory financial charge or some other type of levy
imposed upon a taxpayer (an individual or other legal entity) by a
governmental organization in order to fund various public expenditures.
A failure to pay, along with evasion of or resistance to taxation, is
punishable by law. Taxes consist of Direct and Indirect taxes and may
be paid in money or as its labor equivalent.
► Types of Taxes -
Taxes are of two distinct types, Direct and Indirect taxes. The difference
comes in the way these taxes are implemented. Some are paid directly
by you, such as the dreaded income tax, wealth tax, corporate tax etc.
while others are indirect taxes, such as GST.
a. Direct Taxes
b. Indirect Taxes
Direct Tax
An Income tax is a tax that government impose on financial income
generated by all entities within their jurisdiction. By law, businesses
and individual must file an income tax return every year to determine
whether they owe any taxes or are eligible for a tax refund.
59
► Financial year - A year as reckoned for taxing or accounting
purposes.
► Assessment year - Assessment year is the year immediately
following the financial year wherein the income of the financial year
is assessed.
There are some examples of Direct Taxes like:
1. Income Tax
2. Corporate Tax
3. Wealth Tax
4. Gift Tax
5. Estate Duty
6. Expenditure Tax
7. Fringe Benefit Tax
60
► Income Tax Slabs for Domestic Companies for F.Y. 2019-20
Gross turnover upto 250 Cr. in the previous year Gross 25%
Category of Taxpayer
Due Date for Tax Filing- FV 2018-19
(This is income tax return for the financial year 2018-1.9. Applicable for income earned from l.
April 2018 to 31 March 2019).
(This is income tax return for the financial year 2018-19. Applicable for income
earned from April 1st, 2018 to March 31st, 2019).
Important Due Dates of Income tax return filing for the year 2019
64
Indirect Tax
An indirect tax is a tax collected by an intermediary from the person
who bears the ultimate economic burden of the tax. The intermediary
later files a tax return and forwards the tax proceeds to government with
the return. GST is the most prominent example of Indirect tax levied in
India on the supply of goods & services. GST is levied at every step in
the production process, but is refunded to all parties in the chain of
production other than the final consumers. Goods & Services are
divided into five tax slabs for collection of tax - 0%, 5%, 12%, 18%
and 28%.
Petroleum products, alcoholic drinks, electricity, and real estate are
taxed separately by the individual state governments. India adopted a
dual GST model, meaning that taxation is administered by both the
Union & State governments. Transactions made within a single state
are levied with Central GST (CGST) by the Central government
and State GST (SGST) by the State governments. For inter-state
transactions and imported goods & services, an integrated GST
(IGST) is levied by the Central government.
The GSTN software is developed by Infosys Technologies and IT
network is maintained by the NIC. "Goods & Services Tax" Network
(GSTN) is a non-profit organization formed for creating
sophisticated network, accessible to stakeholders, government and
taxpayers to access information from on a single source (portal).
66
CHAPTERS
LEARNING, CONCLUSION
AND SUGGESTIONS
67
Behavioral Learning from the Organization
► COMMUNICATIO
Good communication consists of many other different sub-skills, from
suitable patterns of body language and eye contact with the ability to
write clear and accurate reports. Accurate listening and the ability to
follow instructions are especially important but are often ignored or
taken for granted. Many people simply do not pay close attention to
what others say or write and do not ask follow-up questions to check
their understanding. As a result, individuals act on their own inaccurate
assumptions and create inefficiencies and frustrations at work.
Communication training will help them overcome these challenges.
► SELF-IMPROVEME T
Life in the workplace should not enforce stagnation; there should be
a constant need or desire for improvement. Satisfaction leads to a
perception of repetition, which is the essential of a job perceived as
unchallenging. Employees should improve to avoid both the frustration
of inexperience and contentment with their work.
68
People always have room to grow, and advance behavioral skills are
always welcomed. At the upper end, one can give your workers the
tools and mindset to aim for improvement by observing their behavior,
work habits, and production. Self-improvement training will help
provide feedback and criticisms that they can use to benefit their next
assignments. An essential part of promoting improvement is to
communicate to the employees that failure.
► EMPATHY
Being an empathetic individual comes naturally to some, but is less
natural to others. Behaving with empathy means more than feeling bad
for someone who's sad or sharing in someone else's joy. It means being
able to step into someone else's world to understand not just what their
point of view is, but also why they have that point of view.
Empathy is a behavioral skill that can help one not only keep their own
peace of mind but can also help one to grow in your career because
empathetic people tend to put others at ease.
► CONFLICT RESOLUTION
At points of imbalance and friction, the employees must be able to
confront the tension between them and resolve whatever disagreement
arises. This is a twig of communication, though it is a distinct skill that
can be hard to develop due to hesitation and the intimate nature of the
workplace.
The bad habit to breed is ignoring these conflicts to the point that they
grow and spread like wild-fire, damaging relationships and the
productivity of both individuals and the team. Instead, employers
should remain aware of potential conflicts and be active in entering and
facilitating these more emotional interactions, and over time, help their
workers see the bigger picture when they harbor uncertainties.
5 BEST PRACTICES OBSERVED IN
THE ORGANIZATION
The employees are always energetic and ready to do work; they don't
waste their time. They always strive for excellence with effectiveness
and efficiency in their work. Even if the proprietor is not at the office
they don't skip work hours.
75
REFERENCES
https://cleartax.in/s/income-tax-slabs
https://economictimes.indiatimes.com
https://www.avalara.com
https://www.business-standard.com
https://www.google.eo.in/imghp?hl=en&tab=wi&ogbl
http://www.gstcouncil.gov.in/
https://www.myloancare.in/tax/income-tax-slabs-rates/
https://www.wikipedia.org/
www.google.com