A STUDY ON REGESTRATION AND

TAXATION SERVICES OF

LAL & ASSOCIATES

Submitted to

CHITKARA BUSINESS SCHOOL

in partial fulfilment of the requirements for the award of degree of

Master of Business Administration

Submitted By: - Supervised By: -

Sourav Goyal Dr. Tarminder Kaur

MBA-D-F&B

1820982583

i
CERTIFICATE
 CHITKARA BUSINESS SCHOOL

CHITKARA UNIVERSITY

2018-2019

DECLARATION

I, “Sourav Goyal”, hereby declare that the work presented herein is genuine work
done originally by me and has not been published or submitted elsewhere. Any
literature, data or work done by others and cited in the report has been given due
acknowledgement and listed in the reference section.

Sourav Goyal

Roll no. 1820982583

Date: 22th December, 2018

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 ACKNOWLEDGEMENT

This project was a golden opportunity for learning and self-development. I consider
myself very lucky and honored to have so many wonderful people that lead me
through in completion of this project.

I extend my gratitude to Chitkara Business School for giving me this opportunity.

I am very grateful to Dr. Tarminder Kaur who was my guide during the development
of this project and it was her guidance and assistance which helped me in completing
my project and I am thankful for her support and friendly guidance.

I would also like to express special thanks to my supervisor CA Jagjiwan lal for his
guidance, support and supervision in completion of this report.
I would like to thank all my colleagues with whom I worked together during the
internship programme.

Also, I would like to thank the God Almighty. His blessings help me everywhere in
my life.

(Sourav Goyal)

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 EXECUTIVE SUMMARY

This report is all about my internship in LAL & ASSOCIATES, MOGA. The main
aim of doing internship under the CA firm is to interact with the professional bodies
and gain some practical knowledge about the different organizations. My objective of
this report is to share my experience during internship period. This report provides an
analysis on the working of the employees and CAs in the firm. This report is the
outcome of the Winter Internship program and summary of my work which I have
done in LAL & ASSOCIATES. It was a great experience for me to work here. My
theoretical and practical knowledge related to taxation is helping me a lot.

Through this project report, I have studied about the registration and taxation services
of LAL & ASSOCIATES. This report has been made to see how the registration and
taxation services management is done in LAL & ASSOCIATES.

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 TABLE OF CONTENTS

PART-1 INTRODUCTION TO COMPANY………………………………………1

1. Brief Introduction and Background……………………………………………1

2. Detailed Operation…….………………………………………………………2
3. SWOT Analysis………………………………………………………………. 7

PART-2 INTRODUCTION TO PROJECT

Chapter-1 Introduction & Problem……………………………………………………8

Chapter-2 Need and Objective………………….……………………………………12

Chapter-3 Details of Actual Work Done………………..……………………………13

Chapter-4 Interpretation & Analysis…………………………………………………32

Chapter-5 Summary, Conclusion & Suggestions……………………………………33

REFERENCES .....................................................................................................

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 PART I: - INTRODUCTION TO THE ORGANIZATION

A) Introduction to the Organization

 Name of the firm LAL & ASSOCIATES

 Date of Establishment 10.07.1989

 Registration No. of firm with ICAI 009392N

 Constitution of the firm Partnership

 Date of Reconstitution of the firm 10.03.2008

 Registered Office Opposite Gopal Gaushala,

Gandhi Road, Moga

 No. of employees 5

 Particulars of Partners

Sr. Name Age Designation Qualif Membership Date of Date Date

No icatio No. Enrolment of COP of joining
n With ICAI this firm
1 CA. Jagjiwan 56 Partner CA 087946 08.02.89 10.03.89 10.07.89
Lal
2 CA Rohit 35 Partner CA 509677 15.05.07 15.05.07 10.03.08
Singla
3 CA. Sonali 35 Partner CA 510389 22.10.07 10.03.08 10.03.08
Singla

Details of experiences with Banks:

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 a) Concurrent Audit
Assignments Name of Bank Period Branch/Office
i) As Concurrent Oriental Bank Of 1.4.11 to Moga
Auditor Commerce 31.3.2012
ii) As Concurrent Oriental Bank Of 1.4.12 to Moga
Auditor Commerce 31.3.2013
iii) As Concurrent Central Bank Of India 1.1.2013 to Moga
Auditor 31.12.2013
iv) As Concurrent Central Bank Of India 1.1.2014 to Moga
Auditor 31.12.2014
v) As Concurrent Allahabad Bank 1.10.2012 to Moga
Auditor 30.9.2013

vi) As Concurrent Allahabad Bank 1.10.2013 to Moga

Auditor 30.9.2014
vii) As Concurrent Allahabad Bank 1.10.2014 to Moga
Auditor 30.9.2015

viii As Concurrent Punjab & Sind Bank 1.7.2013 to Faridkot

) Auditor 30.6.2014
ix) As Concurrent Oriental Bank of 1.7.2014 to Kotisekhan
Auditor Commerce 30.6.2017
x) As Concurrent Punjab & Sind Bank 1.7.2016 to Baghapurana
Auditor 30.6.2017

b) Statutory Audit

Assignments Name of Bank Year Branch/Office

i) As Statutory State Bank of 2016-2017 Various Branches
Auditor India
ii) As Statutory State Bank of 2015-2016 Various Branches
Auditor India
iii) As Statutory State Bank of 2014-2015 Various Branches
Auditor India
iv) As Central Malwa Gramin 2016-17 Head office as
Statutory Auditor Bank central statutory
auditor

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 v) As Central Malwa Gramin 2015-2016 Head office as
Statutory Auditor Bank central statutory
auditor
vi) As Central Malwa Gramin 2014-2015 Head office as
Statutory Auditor Bank central statutory
auditor
vii) As Statutory Bank Of India 2010 to Various Branches
Auditor 2013
viii) As Statutory Punjab & Sind 2002 to Various Branches
Auditor Bank 2009
ix) As Statutory State Bank of 1998 to Various Branches
Auditor Patiala 2001
x) As Statutory Bank of India 1994 to Various Branches
Auditor 1997
xi) As Statutory State Bank of 1990 to Various Branches
Auditor Patiala 1993

I) Mission And Vision

Mission: Mission is to create synergies through the amalgamation of the various

professional values with a focus on delivering value based services that result in the
optimization of client worth, business prospects and growth.

Vision: Firm continuously strives to be the Premier Accounting and Consultancy firm
that provides excellent service to their clients and an excellent quality of life for their
associates.

II) Historical Background of the group

This company was started in Moga. The company is providing financial services to its
customers since 1989 as it was started by CA Jagjiwan Lal in 1989. Firstly there was
2 partners Ca Jagjiwan Lal and Ca Rohit Singla after the marriage of Ca Rohit Singla
his spouse Ca Sonali Singla also becomes the partner of this firm ‘Lal & Associates’
has been able to create long lasting relationships with their clients through loyalty and

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trust. They help their clients to achieve their commercial and personal goals. This
enables Lal & Associates to match capabilities with those needed by our customers to
meet the challenges of tomorrow’s marketplace. It is a company which deals in
taxation.

III) Names & Location of Group Companies

‘Lal & Associates’ is located Backside Welkin garden, Gandhi Road, Moga. There
are no other branches of the company.

IV) MARKETS

Lal & Associates is dealing with domestic markets (i.e. local market). Lal &
Associates is a Charted Accountants firm which is serving the clients of Moga city as
well as cities like Amritsar, Ludhiana, Tarn-Taran, Jalandhar etc.

V) SERVICES

Assurance Services

• Statutory Audits- It is a type of audit to determine whether an organization is

providing a fair and accurate representation of its financial position by examining
information such as bank balances, bookkeeping records and financial transactions.

• Concurrent audit- It is a systematic and timely examination of financial

transactions on a regular basis to ensure accuracy, authenticity, compliance with
procedures and guidelines. Lal & Associates has done various concurrent audits of
banks like Oriental bank of commerce, Central bank of India etc

• Tax Audits- is a review of accounts of taxpayers with business or profession

from an income tax point of view such as incomes, deduction, compliance with tax
laws, etc.

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• Internal and Management Audits-These type of services helps organizations
achieve their objectives. It is concerned with evaluating and improving the
effectiveness of risk management, control and governance processes in an
organization.

Direct & Indirect Taxation

• Corporate and personal tax compliance including income-tax assessments,

Appeals before the Commissioner (Appeals) and the Income-tax Appellate Tribunal.

• Filing of Income-tax and Wealth-tax returns of residents and non-residents

individuals, domestic and foreign companies and other entities.

• Domestic Tax Planning.

• GST compliance.

• Personal Advisory Services.

• Personal financial planning.

• Insurance and pension planning.

• Formation of trust.

• Acting as arbitrator.

• Wills

Accounting & Related Consultancy

• Design, implementation and review of accounting manuals.

• Advice on various accounting issues.

Company Law Matters

• Formation of Indian Companies

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• Advising on various matters under the Companies Act, 1956

Secretarial Services

• Maintenance of statutory records and registers

• Maintenance of minutes book.

• Assistance in preparation and filing of various forms with registrar of companies

Other Services

Among the many other duties undertaken by a Chartered Accountant, mention may be
made of service as an arbitrator for the settling of disputes and those connected with
insolvency work, such as the preparation of statements of affairs and the duties of a
trustee in bankruptcy or under a deed of arrangement.

Types of clients

Clients of the chartered accountant’s firm are mostly the taxpayers who want to file
the return or avail any other service. Proprietors, Partnership firm, Service providers,
manufacturing firms, commission agents are the clients who avail the service of
accounting and regular filing of returns. These parties are the taxpayers and have to
pay taxes under GST as per their registration under GST. Regular GSTIN holders
have to approximately file 3 returns per month, so they have to avail the services of
Chartered Accountants. Other taxpayers who opted for composition scheme under
GST have to file taxes quarterly and these are also done by services of Chartered
Accountants.

Industrial Environment Of The Company-

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 Swot Analysis

STRENGTH WEAKNESS

 Partnership Firm  Tough Competition from Other Knowledge

 Skilled Workers Consulting Agencies

 Loyal Customers  Adverse Publicity Due to Lawsuits

 Strong Brand Equity  Weak IT department

 Weak Training Procedure for New Audit
assistant

Opportunity Threats

 Complex Tax Laws Enhancing the

Opportunity  Higher Competition in Market

 Increase in Companies Looking for Expert  External Changes

Business Solutions  Lower Profitability
 GST  Technology Problem
 There are enormous growth prospects in
emerging markets

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 Industry Growth

Growth of this industry is very good as the number of Tax payers are increasing at the
very high pace as the GST has fill a lot of loopholes that’s why people have to file
returns to take Input tax credit. And even due to decrease in income tax rates mostly
people want to convert their black money in white that’s why they start filing income
tax returns.

Rise In Number Of Taxpayers

60000000.00

50000000.00

40000000.00
Number of Taxpayers

30000000.00

20000000.00

10000000.00

0.00
FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18

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 PART-2 INTRODUCTION TO PROJECT

Chapter -1 Introduction and Problem

A Chartered accountant is one who is specialized in accounting, auditing and

taxation. He also serves as a management and corporate caretaker. In recent times,
accountancy has become popular as a profession. The services of a CA are required in
money matters even in a small business. Moreover, according to the Company Act
only CA's in professional practice are allowed to be appointed as auditors of
companies in India. A chartered accountant is a person who is accepted as a member
of the Institute of Chartered Accountants of India (ICAI) after having passed the Final
examination of the Chartered accountancy course conducted by the institute. The
Institute of Chartered Accountants of India (ICAI) is a statutory body established by
an Act of Parliament, viz. The Chartered Accountants Act, 1949 (Act No. XXXVIII
of 1949) for regulating the profession of Chartered Accountancy in the country. The
Institute, functions under the administrative control of the Ministry of Corporate
Affairs, Government of India. The ICAI is the second largest professional body of
Chartered Accountants in the world, with a strong tradition of service to the Indian
economy in public interest.

ICAI Vision: - To be World’s leading accounting body, a regulator and developer of

Trusted and Independent Professionals with World Class Competencies in accounting,
assurance, taxation, finance and business advisory services.

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ICAI mission: - ICAI will leverage technology and infrastructure and partner with its
shareholders to:

a) impart world class education, training and professional development

opportunities to create global professionals

b) develop an independent and transparent regulatory mechanism, that keeps pace

with changing time

c) ensure adherence to highest ethical standards

d) conduct cutting edge research and development in the areas of accounting,

assurance, taxation, finance and business advisory services.

e) Establish ICAI members and firms as Indian multi-national service providers.

The CA profession is contributing a lot to the economy. But mostly it’s a

supporting role, not a leading role. The major role in the economic development is
played by entrepreneurs, businessmen and the government. People who bring together
various resources to produce goods or services in an economy.

Chartered Accountants don’t bring together any resources to create any significant
economic development, they are resources themselves. Most CAs help the economy
indirectly through the following activities:

Supporting in tax compliance -This includes liaison with government authorities,

representing clients in courts, ensuring smooth business operations by taking over the
complex tax compliance part. For example, without the CA profession, changes like
GST will be very hard to implement.

Financing - Creating opportunities by arranging for business finance. They are

helpful in making calculations and convincing banks about the credit worthiness of
entrepreneurs. On a large scale too, many CAs working with investment banks help to
arrange some key business deals between organizations.

Auditing - which includes the redundant but still necessary function of control
procedures. This is to prevent leakages from the economy and stand vigil to check on
creation of illegal properties, black money and frauds etc.

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Accounting - bringing together professional standards of accounting in changing
business environment and to accommodate new developments in business. This
ensures comparability, reliability and investor faith, which is good for the economy.

General business support – Things that Chartered Accountants do can be classified

as general support and consulting services. They can do this because of their
knowledge about laws, taxes, compliance, financial markets, investments, valuations,
banking, regulations etc. It’s too many things, but mostly for supporting roles only.

Filing of return: The main task with the Chartered Accountant is the filing of return.
Chartered Accountant is a professional who is authorized by Certificate of Chartered
Accountants of India and is a authorized person who can file the returns on the behalf
of his clients. There are different types of returns which are filed by the persons.
Some returns filed are for the business and some are for the individual. All the
persons having the taxable income of more than Rs. 250000 are bound to file a return
under Income Tax Act.

After the introduction of GST all the persons registered have to file the return under
GST. On registration of person, he is appointed a 15 digits alphanumeric code called
GSTIN in which are contained the details of authorized person, his PAN number,
place of operation of business, goods/services traded, type of organization, scheme
opted under GST. A person registered under the composite scheme of GST has to file
the returns quarterly i.e. every three months. A person registered as a normal taxpayer
has to file the returns monthly.

Returns filed by regular business are:-

RETURN FORM INTERVAL DUE DATE

GSTR-1 Monthly 10th of next month
GSTR-2 Monthly 15th of next month
GSTR-3 Monthly 20th of next month
GSTR-3B Monthly 20th of next month
GSTR-9 Annually 31st December of next financial year

Returns filed by composition businesses are:-

RETURN FORM INTERVAL DUE DATE

GSTR-4 Quarterly 18th of the month succeeding
quarter

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 GSTR-9A Annually 31st December of next financial year

Returns to be filed by specific registered dealers:-

RETURN FORM INTERVAL DUE DATE

GSTR-5 Monthly 20th of next month
GSTR-6 Monthly 13th of next month
GSTR-7 Monthly 10th of next month
GSTR-8 Monthly 10th of next month
GSTR-10 Once when Within three months of the date of
registration is cancellation or date of cancellation
cancelled or order, whichever is later.
surrendered
GSTR-11 Monthly 28th of the month following the
month for which statement is filed

NOTE: As GST has implemented from 1 July 2017 a lot of changes are coming day
by day even chartered accountant have to take care of any new update that’s why
government sometimes extend the dates of filing returns.

Problem

Chartered Accountant firm has to maintain the record of all the clients and various
documents. In addition to the record of clients, the record of transactions and working
of each clients business is to be recorded separately. The transactions relating to
clients business is recorded in tally which helps them to file the tax returns efficiently.
For recording the transactions in software, transactions done by the clients should be
known to the employee who is engaged in recording of these transactions. So, for
recording the
transactions
effectively and well
in time he needs to
gather the details well
before they are
needed.

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The problem arises when the information is not gathered on time. This may be due to
carelessness of the employee concerned with recording of transactions or on part of
client who has to provide the information. Same problem arises in LAL & Associates.
Some of the clients of the firm are not much aware about when the return is to be
filled so they donot provide proper details till that time and when asked for the details
by the employee the information is delayed by the clients. Due to the shortage of time
the transactions are recorded in a hurry and in this process there are chances that the
transaction is missed and no record is made of such transaction. When the transaction
is missed then it will lead to wrongly filing of return and in certain cases this leads to
Tax liability on client.

After the introduction of GST, the importance of recording the outward supplies,
purchases, credit vouchers, etc has increased. In this GSTIN of all the parties of the
client is to be recorded and in some cases GSTIN entered on the invoice is wrongly
put and when entered in tally, it shows the error and transaction is stopped.

Problems caused due to lack of timely gathering of information:-

(a) Important transactions of clients business are missed.

(b) Recording of transactions in computer software is done in a hurry so, the chances
of error increases.

(c) Returns are not submitted within due date.

(d) There is error in filing of return.

(e) In some returns, transactions are cross verified and in that case if a transaction is
missed then it will lead to error in filing of return.

(f) There is less time left for verification of transactions recorded with the invoices,
receipts and vouchers.

Suggestions Given To Solve The Above Problem:

 Strictly ask to employees to collect the information from the clients

 Give discount to clients who come earlier

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  Inform client time to time that they have to provide information on time and
ask strictly to them that they are not responsible if any error occurred in future
due to late information
 Update clients time to time by Providing information about new way of
recording transaction

Another Problem is that clients of the chartered accountant meet him regularly
for some financial advice, filing of return, and for some other financial purpose. The
interaction of the two is must in order to fulfill the objective of the clients. In the firm
I worked, Chartered Accountant was not available in the timings mentioned by him
and so the clients were not able to fulfill their objective. This non availability may
lead to loss of clients as they may switch to another Chartered Accountant to fulfill
their purpose.

Suggestion: Chartered Accountant should try to be available as much as possible

and if it is not possible then he should inform the clients before the meeting timings
and ask his employees to solve their problem sometime problem is very small that
employees of the office can handle it easily.

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 Chapter-2 Need and objectives of Study

Objective of the Study is to have overall idea of the working of different industries.
During this internship I worked with, ‘Lal & Associates’ Chartered Accountants firm
and have learnt many new skills. Before internship I had only theoretical knowledge
about work in organization. Now I have some practical knowledge and experience of
functionality in an organization. Now I have knowledge about the transactions of
different businesses be it sole proprietor, partnership, manufacturing concerns, service
providers, etc.

This internship will help me to know the applicability of accounting in the business.
Following are the objectives that I have in my mind before working as an internee: -

a) To learn about the jobs performed by a Chartered Accountant.

b) To gain experience on legal aspects of accounting

c) To experience the life in the business world.

d) To expand knowledge on areas of accounting

e) To develop personality and communication skills.

f) To interact with clients to know how the market functions.

g) To apply the theoretical knowledge in actual organization.

h) To get experience about the accountability to boss.

i) To know how to present in front of boss.

j) To learn book keeping practices of different type of organizations

k) To learn about prevalent tax structure.

l) To plan for the future of oneself and learn how to adjust in an organization.

m) To analyze the business situation.

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n) To compare practical aspects with theoretical aspects.

o) To promote my personal knowledge and professional preparation for future

Work Done In Internship So Far

Update the acknowledgement of ITR (Income Tax Return) : Most of us

file our income-tax (I-T) returns ‘online’ before the July 31 deadline. Electronic filing
(e-filing) is convenient and even can even pay your taxes online. However, filing
returns online does not mean that the process of filing return is complete. If the person
added your ‘digital signature’ while e-filing, then the return filing process is complete
and will receive the acknowledgement by Income Tax department through email.

But if the return is filed online ‘without adding digital signature’, then the process of
e-filing is not complete. E-filing will only be complete after the central processing
Centre (CPC) of the I-T department sends an email or SMS acknowledging the receipt
of the Form ITR-V.

ITR-V stands for ‘Income Tax Return–Verification’ Form. It is a one-page document.

ITR-V is received when ITR file online—without using a digital signature. It is sent
by the I-T Department. The I-T Department needs to verify the authenticity of your e-
filing which does not have a digital signature. On receipt of Form ITR-V, you have to
sign the copy of the Form in ‘blue ink’ and submit it to the I-T Department CPC,
Bangalore to complete the filing process.

Prepared Net Worth Certificate of clients: Net worth thus gives a good
indication of the total financial worth of a person at a point in time.Net worth
certificate is a document that is compiled and certified usually by a Chartered
Accountant taking into consideration all the assets and liabilities of the individual or
Enterprise

Following is the picture of Net Worth certificate is prepared by me according to the

instructions given by my mentor CA Jagjiwan Lal. Mr. Sukhpal Singh Brar and his

xvi
spouse Mrs. Sarbjit Kaur want to shift abroad that’s why they have to show their
wealth and income to embassy.

xvii
xviii
Maintaining excel sheet for recording of figures entered while filing
of return: While filing of return under GST, certain figures are asked which are
recorded in excel for record purpose. Different products/services carry different rates
of taxes and are charged accordingly. The supplies outward, purchases are recorded
under the respective rates while maintaining the excel sheet. The purpose of recording
such information is to verify it later with the invoices and any such difference can be
further rectified if there is a provision to do so.

Following items are recorded while preparing the excel sheets:-

(a) Different rates of taxes applicable on goods/services a organization deals.

(b) Purchases made under different rates of taxes.
(c) Sales made under different rates of taxes.
(d) Purchase returns made within the period.
(e) Invoices cancelled
(f) Amount of CGST, SGST and IGST paid on purchases.
(g) Amount of CGST, SGST and IGST applicable on sales.
(h) Taxes paid

The purpose of maintaining of this data is for the purpose of internal record. By this
the value can be checked which is entered at the time of filing of return and all the
data is assessed at a single place.

Applying GST

Any person carrying on some business, is selling goods/services and earning some
income needs to register under GST and obtain GSTIN. However, persons having
taxable income (from sale of goods/services) below 20 lakhs have no compulsion as
to get itself registered under GST. The National Development Council has set certain
states as special category states and in these states persons having taxable income
(from sale of goods/services) above 10 lakhs need to get themselves registered under
GST. Currently, Assam, Nagaland, Jammu & Kashmir, Arunachal Pradesh, Manipur,
Meghalaya, Mizoram, Uttarakhand, Tripura, Himachal Pradesh, and Sikkim are
considered special category states. The National Development Council composed of
the Prime Minister, Union Ministers, Chief Ministers and members of the Planning
Commission determines the list of special category states in India. Also, the decision

xix
to accorded special status to a State is based on factors like: hilly and difficult terrain;
low population density and or sizeable share of tribal population; strategic location
along borders with neighboring countries; economic and infrastructure backwardness
and non-viable nature of state finances.

Person who mandatorily need GST registration

(a) Person making any inter-state taxable supply- any person who supplies
goods/services to other state has to register itself under GST.
(b) Casual taxable persons making taxable supply- person who occasionally
engages in buying and selling of goods/services.
(c) Non-resident taxable persons making taxable supply- a person who is not a
resident of India and supplies goods/services to a taxable person in India, but
has no fixed place of operations.
(d) Persons who make taxable supply of goods or services on behalf of other other
persons- agents, brokers, dealers, professionals, etc performing some taxable
activity on behalf of other person has to get itself registered under GST.
(e) Electronic Commerce Operator- electronic commerce operator supplies
goods/services electronically and owns, operates and manages digital transfer
media through which supply is made. Such person has to get itself registered
under GST.
(f) Person supplying online information and database access or retrieval services-
person supplying online information and database from place outside India to
a person in India.
(g) Persons who supply goods or services through electronic commerce operators-
person who supplies goods/services through electronic commerce operators,
other than those where operators collect tax at source from the supplier are
required to register under GST.
(h) Persons Having Service Tax or VAT or Central Excise Registration- a person
who was registered under service tax or Vat or central excise law as on date of
introduction of GST, are required to get registration under GST.
(i) Transferee or Successor of a Business- a person who is registered under GST
transfers its business to other person then such person has to mandatorily get
itself registered under GST.

xx
Person who does not mandatorily has to get itself registered under
GST

(a) A person who sells goods/services that is not liable to tax under GST or such
goods/services are fully exempted from tax.
(b) A person earning income from agricultural produce as long as the supply is to
the extent that it avails exemption from obtaining GST registration. Here,
agriculturist is a person who undertakes cultivation of land by own labour or
by the labour of family or by servants on wages payable on cash or kind.

Schemes under GST

A person who gets himself registered under GST has the option to avail the
composition scheme or go for Regular GSTIN. A person can avail composition
scheme if its annual turnover is less than 75 lakhs. Composition dealer has to file the
quarterly return instead of three monthly return as in case of normal GSTIN holders.
They need not issue taxable invoice which means that they cannot collect tax from the
customers. These holders do not even avail input tax credit. They have to pay tax at a
fix rate of 1% on annual sales. Manufacturers have to pay @ 2%. Suppliers of food or
drink other than alcohol for human consumption have to pay tax at a fix rate of 5%.

Composition scheme is not applicable to:-

1. Service providers

2. Inter-state sellers

3. E-commerce sellers

4. Suppliers of non-taxable goods

5. Manufacturer of Notified Goods

xxi
Some very important forms of GSTR

GSTR 1: Return Filing, Format, Eligibility & Rules. GSTR-1 is a monthly return that
summarizes all sales (outward supplies) of a taxpayer. GSTR 1 is to be filed by the
taxpayers holding regular GSTIN. It prescribes the details to be mentioned by the
taxpayer for the sales made by him in the prescribed period. The details of outward
supply made by the taxpayer are to be provided bill wise. This return is to be filed
monthly and the sales of the month are to be provided. Here, the purpose of declaring
outward supply is to compute the tax liability of the supplier. Here the taxpayer
should be very careful while declaring the outward supply detail as this will be auto
populated in GSTR 2. It should also be ensured that the information declared by the
registered person tallies with the financial ledger. Sales account in the financial ledger
shall be bifurcated into various heads to ensure that the amount declared in each of the
table tallies with the balance shown in the financial ledger code. Thus, mapping of
tables with financial ledger code shall be done to ensure completeness and correctness
of the information declared in GSTR-1.

The information so provided of the outward supply by the supplier will be provided to
the registered taxpayer after due date of GSTR 1 on the Part A of GSTR 2A. In GSTR
2A the information provided by the supplier is tallied bill wise. In GSTR 2A, details
regarding the purchase is to be entered and this is tallied by the information provided
by the supplier in GSTR 1.

Particulars to be filed under GSTR 1 are:

(a) GSTIN of the taxpayer- It is the 15 digits alphanumeric code which is

provided to a person registered under GST.
(b) Name of the registered person- Name of registered person will be auto filled
when GSTIN is provided.
(c) Aggregate turnover in the preceding financial year.
(d) Taxable sales to a registered person (B2B) other than zero rated sales and
deemed exports- Amount of sales made to a registered person is to be
recorded.

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 (e) Taxable sales to a unregistered person (B2C) where invoice price is more than
2.5 lakhs - Amount of sales to a consumer of goods or the person who is not
registered under GST.
(f) Zero rated sales and deemed exports- This is the value exports, sales to sez
and deemed exports.
(g) Taxable sales to an unregistered party with outward supplies of less than 2.5
lakhs.
(h) Nil rated, exempt and non-GST outward sales- this will include the sale of
goods which are nil rated or are exempted from tax under GST. This will also
include nil rated interstate and intrastate transactions.
(i) Amendments to details of the invoice- Under this head all the transactions
which are amended in the current tax period. Credit note, debit notes, refund
vouchers and cancelled invoices are recorded under this head.
(j) Details of debit note and credit note issued to a unregistered person.
(k) Amendments of details of outward supply of earlier tax periods- It denotes the
details of Advances Received/Advance adjusted in the current tax period.
(l) HSN wise summary of outward supplies.
(m) Documents issued during the tax period- All the documents issued like debit
note, credit note, invoice, receipt vouchers, payment vouchers, refund
vouchers.

Government has updated rules regarding filing of GSTR 1. Firstly, GSTR 1 was to be
filled monthly for all the taxpayers registered under GST and holding normal GSTIN
but now there is a option for the taxpayers with outward supplies less than 1.5 crores
to file the GSTR 1 quarterly. In other words, it states that taxpayers with outward
supplies of less than 1.5 crores can file the return on quarter basis. Further the
taxpayers with regular GSTIN and having outward sales of less than 1.5 crores have
the option to file quarterly and now the GSTR 1 of such taxpayers will be filled for
the quarter . Other taxpayers with outward supplies of more than 1.5 crores have to
file the return GSTR 1 of the period of 4 months and further.

Return once filed cannot be revised. Any mistake made in the return can be rectified
in the next periods (month/quarter) return. It means that if a mistake is made in
September GSTR-1, rectification for the same can be made in October’s GSTR-1.
Late Fees for not filing GSTR-1 is Rs. 200 per day of delay (Rs. 100 as per CGST Act

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and Rs. 100 as per SGST Act. The late fees will be charged from the date after the due
date.

GSTR 2A: It is a purchase-related tax return that is automatically generated for

each business by the GST portal. GSTR-2A is a read-only document with a list of all
of the invoices from the various sellers during the month. My Mentor CA Jagjiwan
Lal asked me to keep record of it by download a copy of it. He told me that they have
to keep record of it to file GSTR-3B as It helps in calculating Net Input Tax Credit

GSTR-3B is a simple summary return that all normal taxpayers must file monthly.
Taxpayers are allowed to take the input tax credit (ITC) based on the details by the
taxpayer in Form GSTR – 3B.

GSTR-3B is the simple return introduced by taxation department in which simple

sales and purchase amount is to be mentioned. This return does not ask for the full
fledged information as per the invoice. Here, simple total values of sales and purchase
are to be provided. GSTR 3B is to be filled by 20th of the next month for which the
return is to be filled.

Filing of GSTR 3B is mandatory for all the taxpayers holding regular GSTIN and is to
be filled monthly. In case, a taxpayer has no transactions during the month still it is a
compulsion for him to file a return. In this case a taxpayer has to file a nil return.
GSTR-3 is a monthly return with the summarized details of sales, purchases, sales
during the month along with the amount of GST liability. This return is auto-
generated pulling information from GSTR-1 and GSTR-2.

GSTR-3B is to be filed by all the taxpayers registered under GST.

However, the following registrants do not have to file GSTR-3B

(a) Input Service Distributors

(b) Composition Dealers
(c) Suppliers of online information and database access or retrieval services
(OIDAR), who have to pay tax themselves (as per Section 14 of the IGST Act)
(d) Non-resident taxable person

GSTR-3 will show the amount of tax liability for the month and this has to be filled
and tax liability has to be paid. The liability to pay tax arises only if input tax credit is

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less than the output tax. In other words, it states that the liability to pay tax arises only
if value of sales is more than that of purchases.

A registered taxpayer who does not file GSTR-3B will have to face heavy fines and
penalty. If GSTR-3 return is not filed then the GSTR-1 of the next month cannot be
filed. Hence, late filing of GST return will have a cascading effect leading to heavy
fines and penalty. In case the return is filed late then taxpayer will have to incur
penalty of Rs. 100/day for CGST and Rs. 100/day for SGST. To conclude a taxpayer
has to pay a penalty of Rs. 200/day for late filing of the return and the maximum fine
which is to be paid is Rs. 5000. In addition to later fee charges a taxpayer has to pay
interest @ 18% per annum, on the amount of outstanding taxes if any. There is no late
fee charges for IGST.

GSTR-3B once filled cannot be revised. Any mistake incurred in filing of return can
be rectified while filing the GSTR-1 and GSTR-2. There is no provision to rectify the
return once it is filed.

GSTR 4: GSTR 4 is the return which is to filled by the taxpayers who have opted
for composition scheme under GST. A person carrying on business and having yearly
sales of less than 75 lakhs or 75 lakh can opt for composition scheme and avail the
facility of paying tax at a fixed rate and file quarterly return. These taxpayers have to
pay tax at the fixed rate of 1% of gross sales. The tax is paid quarterly on the amount
of sales without any benefit of input tax credit. The taxpayer has to declare:-

(a) Total consolidated value of sales made during the year.

(b) Amount of tax paid on sales.
(c) Invoice level purchase from the parties with regular GST number, and this will be
auto drafted in form GSTR 4A from the invoice details submitted by the party
holding regular GST number in the filing of GSTR 1.

Due date of filling of GSTR 4 is date 18th of next month after the end of quarter.
GSTR 4 was filled for the second quarter of the financial year but was filled for the
first time since the introduction of GST. July- September was the first quarter for
which GSTR 4 was to be filled. So, according to the rule due date of filling of GSTR
4 stood to be October 18 but it was extended till December 24. Reasons for extending
the due date were many. There was some internal problems with the site

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‘www.gst.gov.in’. as the GST return was filled for the first time so many of the
professionals did not have much idea of how to file the proper return of the taxable
person. Moreover, some of the taxpayers opted for GST number late in july and some
even in august so the portal did not display the quarter for which the return is to be
filled.

Followings are some screenshots of GST software-

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Access advance knowledge about the company through website
www.mca.gov.in: MCA regulates corporate affairs in India through the
Companies Act, 1956, 2013 and other allied Acts, Bills and Rules. MCA also protects
investors and offers many important services to stakeholders. This site is your
gateway to all services, guidance, and other corporate affairs related information.
Mentor also give us knowledge about TReDS: TReDS is an online
electronic institutional mechanism for facilitating the financing of trade receivables of
MSMEs through multiple financiers. The TReDS Platform will enable discounting of
invoices/bills of exchange of MSME Sellers against large Corporates including Govt.
Departments and PSUs, through an auction mechanism, to ensure prompt realization
of trade receivables at competitive market rates.
Add new clients in Tax Pro software: Tax Pro is a software where e-Returns
can be directly uploaded with auto login to e-filing portal and e-Return
Acknowledgements can be stored and retrieved directly by software itself.
Contact to clients to inform them that their GST returns are yet
pending: It is the duty of the Chartered Accountants to inform the clients that their

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returns are still pending and ask them to fill returns as soon as possible because most
of the clients come on the last days due to that site may crash at last moment and
clients have to pay penalty.
Checking the validity period of Digital Signatures of the clients to
maintain records in Excel sheet: My mentor CA Jagjiwan Lal assigned me
work of maintaining the excel sheet in which I have to record the firm’s name of the
clients and the expiry date of that signatures.
A digital signature is a mathematical scheme that validates the integrity or
authenticity of a given digital document or digital message. Digital signature
certificates are the electronic or digital equivalent of paper certificates. Digital
signature certificates validate your digital signature and for affixing digital signatures
to e-documents digital signature certificates are required. Generally, certificates are
used to prove the identity of a person for particular purpose like driving license or
passport or pan card or others. Similarly, digital signature certificates are used to
prove the identity of the person digitally to avail information or services on the
internet and to sign certain documents digitally.

Types of Digital Signature

Certificates

There are three types of

digital signature certificates
depending on the validation
of identity and type of use.
They are:

Class I DSC – Individuals

get it for validating the email
identification of the users and in situations where risk is minimal and here the
signature is stored in software.

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Class II DSC – Business organizations or individuals use this digital signature
certificate to validate the information given by the subscriber in the application
against the information available in a trusted consumer database and in other such
situations where security risk is moderate. In this case a hardware cryptographic
device is used for storing the signature.

Class III DSC – This digital certificate is directly issued by the certifying authority
and it is required that the person applying for DSC must be present at the certifying
authority’s premises and prove his/her identity in front of the authority and the
security risk involved in this case is very high. In this case also a hardware
cryptographic device is used for storing the signature.

Process Of how to get Digital Signature

A licensed authority also called as Certification Authority (CA) that has been granted
the license to issue digital signature certificates by the Government of India can issue
digital signature certificate under the Information Technology Act 2000. You should
pay a specified fee and submit certain documents for obtaining DSC from CA. The e-
KYC documents will fetch your DSC on the same day from CA. The documents are:

 Self-attested PAN card as identity proof.

 Voter ID card or driving license or passport or latest utility bill as address
proof.

The Necessity of Digital Signature Certificates

For e-filing of the income tax returns by any individual, the Government of India has
made it mandatory to affix digital signatures to the income tax returns documents. For
affixing the digital signature one must have digital signature certificates issued by
licensed certification authority.
In addition, Ministry of Corporate Affairs has set the mandatory guidelines for the
companies directing them to file all reports, applications and forms using a digital
signature only and this again requires a digital signature certificate.

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For GST also a company must verify its GST application by affixing a digital
signature using digital signature certificate in order to get registered for GST.
These days many Government procedures, filling different applications, amendments
and forms require digital signatures made by using digital signature certificates.

Benefits of Digital Signature Certificates

Saves Money & Time: As there is no need of physical presence you can digitally
sign your PDF files and other documents using DSC anywhere & anytime. You need
not sign your paper documents and then scan them to send them across through
internet if you follow the above given option. You can save the money which would
otherwise be spent on printing and scanning the document. You can also go green by
saving paper.

Secured Data: The digitally signed documents are tamper proof as the digital
signatures are secured with a private key and public key and they cannot be edited
after digitally signing the document.
Authentic: Digitally signed documents are authentic and the receiver can be
completely sure about the sender’s identity and integrity. The receiver can easily
execute the information in the document without worrying about the document being
forged.

Validity of Digital Signature Certificates

The digital signature certificates in India issued by licensed certifying authority

approved by Ministry of Information & Technology are valid in India as per the
‘Information Technology Act 2000’. The DSC’s come with an explicit starting date &
explicit expiration date. Usually the expiration time for standard digital signature
certificates issued by CA will be from 1 year to 2 years. The digital signature
certificates are managed by Certificate Revocation List (CRL) based on expiration
date. An Indian national can have two DSC’s, one for his personal identification and
another one for official identification.

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Prepared MOA required to register a society under the Society
Registration Act, 1860

My mentor gave me project of making the Memorandum of Association for the

registration of the ‘Public Welfare Society’ under the Society registration Act, 1860.
He gave me a format of Memorandum of Association of a society.

Introduction Of Society Registration Act,1860

 Societies formed by memorandum of association and

registration: Any seven or more persons associated for any literary,
scientific or charitable purpose, or for any such purpose as it is described in
section 20 of this act, may by subscribing their names to a memorandum of
association and filing the registrar of Joint-stock companies from themselves
into a society under this Act

 Memorandum of association: The memorandum of association shall

contain the following things-
1. The name of the society
2. The objects of the society
3. The names, address, and occupations of the governors, council, directors,
committee or other governing body to whom, by the rules of the society, the
management of its affairs is entrusted.
4. A copy of the rules and regulations of the society, certified to be a correct
copy by not less than three of the members of the governing body, shall be
filled with the memorandum of association

Prepared Project Balance Sheet, Cash Flow Statement and other

accounts that are required to apply for Bank Loan to establish new
business: My mentor Ca Jagjiwan lal provides me necessary information and asks
me to make projected P&L account, Balance sheet and cash Flow Statement.

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To create a projected P&L and balance sheet, a business makes certain assumptions
about how individual Profit and loss and balance sheet items may change over time in
the future. Business plans often focus on anticipated future sales. A projected balance
sheet also starts with forecasting sales revenues. And have to decide future profit
margin. Certain balance sheet items, such as inventory, accounts receivable and
accounts payable, exhibit relatively constant relationships to sales, and projections on
those items can be made based on projected sales. Other Profit and loss items like
indirect expenses and revenue and balance sheet items, particularly fixed assets, debt
and equity, change only in accordance with a business's policies and management
decisions, independent of future sales.

To create projected cashflow Prepare the income or sales for the business — a sales
forecast. Prepare detail on any other estimated cash inflows. Prepare detail on all
estimated cash outflows and expenses. Prepare your cash flow forecast by putting all
the gathered detail together

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 CASH FLOW STATEMENT ₹ LAKH
Particulars 1st 2nd 3rd 4th 5th 6th 7th
CASH INFLOW :
Profit before Intt & Tax 93.23 115.27 127.53 138.78 149.10 158.64 200.75
Depreciation 57.08 49.55 43.05 37.42 32.57 28.36 0.00
Pre-Operative Exp write off 2.12 2.12 2.12 2.12 2.12 2.12 2.13
Owned Funds 267.69 0.00 0.00 0.00 0.00 0.00 0.00
Term Loan 330.00 0.00 0.00 0.00 0.00 0.00 0.00
Working Capital Finance 220.00 0.00 0.00 0.00 0.00 0.00 0.00
TOTAL CASH INFLOW 970.12 166.94 172.70 178.32 183.79 189.12 202.88
CASH OUTFLOW :
Capital Expenditure 504.34 0.00 0.00 0.00 0.00 0.00 0.00
Pre-Operative Exp 14.85 0.00 0.00 0.00 0.00 0.00 0.00
Change in Working Capital 298.50 24.36 12.08 12.10 12.16 12.16 23.49
Drawing 6.00 24.00 40.00 48.00 54.00 60.00 60.00
Income-tax 14.17 22.29 27.39 32.18 36.68 40.94 55.26
Bank Interest 47.38 43.14 38.89 34.65 30.41 26.16 21.92
Repayment of Term Loan 47.14 47.14 47.14 47.14 47.14 47.14 47.14
TOTAL CASH OUTFLOW 932.38 160.93 165.50 174.07 180.39 186.40 207.81
Surplus 37.73 6.01 7.20 4.25 3.40 2.72 -4.94

Cash at Biggning of year 0.00 37.73 43.74 50.94 55.19 58.59 61.30
Cash at End of year 37.73 43.74 50.94 55.19 58.59 61.30 56.37

Chapter-4 Interpretation and Analysis

During the working in the Chartered Accountant firm, I earned the experience of
practical applicability of accounting and its combination with law. Through the study
of books of different organizations I learned about how different concepts are
applicable in practical world and how various transactions are made by different types
of organizations.

After the introduction of GST, the work with Chartered Accountants has increased.
Earlier, a taxpayer had to file a single return at the end of the quarter but after GST
some of the taxpayers have to pay monthly 3 returns and some a single return at the
end of quarter. The workload on taxpayers has increased due to introduction of GST
so, each taxpayer avails the services of CA to manage his filing of returns.

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While filing of returns under GST, I found that the transactions which are recorded
are of great importance. A single error while recording of entry on part of one party
will lead to wrong filing of return. The error occurs when the time period is less and
there is no time to re-verify the recorded transactions. For this purpose there is a great
need to make available the information well in advance. This is the main problem on
which the firm should look upon.

Now, all the taxation work is mostly done online and there are alterations on the
portal on regular portal. The person who has to file the return should know all the
alterations which are made by the taxation department so that no problem arises at the
time of filing of returns.

Different returns to be filed need different information. While filing some of the
returns details have to be disclosed bill wise and is some the aggregate amount is to be
filled so, the detailed information is to be known.

Chapter-5 Summary, Conclusion and Suggestions

A project report, ‘functions performed in a chartered accountancy firm’ is the brief

study of the functions performed by a Chartered accountant and other functions
performed in his firm by other employees. There are various functions to be
performed by a CA in the firm. He deals with different clients who ask for financial
advice, filing of returns, accounting, preparation of financial books, audit, etc. All the
functions performed by CA is as per the legal requirements and has to follow all such
rules.

In every firm there are some problems which affect the working in the organization.
In Lal & Associates there is a problem related to gathering of information,
appointment to clients. Timely gathering of information about taxpayer’s business and
recording them in software becomes the base of further working. All the returns to be
filed need some information to be filed and in some returns the file from tally can be

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exported to file the return. So, accounting should be done well in time so that it can be
verified and no error occurs at the time of filing of return. Gathering of information
not only includes the transactions performed but also the complete information about
the debtors and creditors of the client’s business. So, in order to eliminate the errors
information should be gathered well in time and accounting be done accordingly.

Another problem that arises is to the clients. On visiting the firm in the regular
timings, they are not able to interact with the professional. This non-availability of
professional can lead to loss of clients as they may switch to other professional for
financial assistance. This problem should be well thought off and the CA should be
available to the clients in regular timings of business. Due to his non-availability, not
only he suffers on clients but the employees also don’t function efficiently. So, he
should schedule his personal work in the odd periods. Another thing he can do is to
ask all his clients to visit him by taking the appointments so that they need not wait to
meet him.

In the end, I can conclude that by working in the organization I have gained a lot
about the functionality of industry. This internship has helped me gain practical
knowledge in the field of finance. By seeing the books of different organizations I
came to know how the transactions are recorded in the books by different types of
organizations. This experience gained through working in the industry will help gain
confidence and improve the skills of how to interact with the boss.

References

www.icai.org

www.gst.gov.in

www.taxman.com

www.incometaxindia.gov.in

www.cleartax.in

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