Report on

Taxation and auditing

Submitting in partial fulfilment of the requirements

for the Award of the Degree of

BACHELOR OF COMMERCE

By

Abhijai singh

21COMF30

Under the Guidance of

Dr. KUMARASAMY P

KRISTU JAYANTI COLLEGE (AUTONOMOUS)

K. NARAYANPURA, KOTHANUR POST,

BANGALORE - 560077

2023 – 2024
 KRISTU JAYANTI COLLEGE (AUTONOMOUS)

CERTIFICATE FROM GUIDE

This is to certify that this internship work titled Direct and Indirect Taxation is based on an original
project study conducted by Abhijai Singh (21COMF30) of V semester BCom under my guidance.

This internship work has not formed the basis for the award of any degree/ diploma by Bangalore
North University or any other university.

Place: Bangalore

Date: 5-August- 2023 Dr. Kumarasamy P

Name of the guide

----------------------------------------------------------------------------------------------------------------

KRISTU JAYANTI COLLEGE (AUTONOMOUS)

CERTIFICATE FROM INSTITUTION

This is to certify that this internship work title Direct and Indirect Taxation is based on an original
project study conducted by Abhijai Singh (21COMF30) of V semester BCom under the guidance of
Dr. Kumarasamy P

This internship work is based on original and has not formed the basis for the award of any
degree/diploma by Bangalore North University or any other University.

Head of the Department

Place: Bangalore

Date: 5-August-2023
 DECLARATION FROM CANDIDATE

I Abhijai singh hereby declare that this internship work titled Direct and Indirect Taxation is based
on the original project conducted by me under the guidance of Dr. Kumarasamy P

This has not been submitted earlier for the award of any other degree/diploma from Bangalore North
University or any other University.

Place: Bangalore

Date: 5-August-2023

Reg. No: 21comf30 Abhijai singh

Name of the student
Internship report body:

The internship report body should cover the following chapters:

S. No. Chapter No. Particulars MarksMax. pages

1 1 Introduction 2 2–3
2 2 Industry Profile 2 15 – 20
3 3 3 C Analysis – Company, Customer, Competitor 10 20 – 25
4 4 Organizational Structure/ Departments Profile 2 4–5
5 5 SWOC Analysis 8 3–4
6 6 Learning Outcomes 5 2–3
7 7 Conclusion 1 1
Total 30 37 - 60
Introduction

A brief overview about the project.

Industry profile

Write up about the industry of the company selected by the student covering history, growth, statistics,
regulatory framework etc.

3 C Analysis – Company, Customer, Competitor

A comprehensive analysis covering the company, customer and competitors under company section
the student has to write a brief profile about the company covering history, products and services
offered, sales statistics etc.

Organizational structure/ Departments profile

write up about the organization structure and the departments of the company.

SWOC Analysis

comprehensive analysis of the strength’s, weakness, opportunities, and challenges of the selected
company.

Learning outcomes

Sharing the learning experience gained by the student.

Conclusion

A summary off the internship report

 TABLE OF CONTENT
SL.NO CHAPTER NO. PARTICULARS PAGE NO.

1 1 1. Introduction 1-2

2 2 2. Industry Profile 3-17

3 3 3C Analysis 18-26
1

4 4 Organizational Structure 27-30

5 5 SWOC Analysis 31-34

6 6 Learning outcome 35-36

7 7 7. Conclusion 37

TOTAL 43
 Chapter - 1

Introduction
This report contains a brief overview of internship experience of Abhijai Singh at R.N. Khanna & Co.
This internship lasted from 19-June-2023 to 19-July-2023. This internship aimed to provide me
industry level experience and practical exposure.

Throughout the internship I participated in various tasks gaining insight into the real world challenges
and day to day problems faces in firms . Under the guidance of my guide MR Nitin Khanna I got the
opportunity to enhance my professional skills by engaging in various tasks like bookkeeping , direct
and indirect tax , ITR filing , data entry into excel sheet. I gained knowledge about taxation and types
of taxations .

Below mentioned is a list of task performed by me during my internship –

 Vouching

 Data entry in MS Excel

 Taxation

 Theoretical learning of different types of taxations and GST

 Auditing

Software’s used during internship-

 MS Excel

 Tally ERP 9

 Express ITR

As they mark over a decade of excellence, R,N, Khanna & Co. continues to be a trusted partner for
businesses seeking a dependable and proficient financial advisor. Their dedication to delivering tailor-
made solutions, exceptional client service, and ethical practices has earned them a solid reputation
within the industry. The company’s emphasis on integrity, transparency, and ethical practices has
garnered them the trust of numerous clients, ranging from start-ups and small businesses to established

1
corporations. Clients canrely on their guidance, knowing that their financial affairs are in the hands of
experts who prioritize honesty and confidentiality.

With a deep understanding of the intricate tax laws and business regulations, the company is
committed to assisting clients in navigating the complexities of the financial landscape, easing their
tax burdens, and providing strategic financial advice to enhance their business growth.

In addition, the firm assists businesses in navigating the complex world of Goods and Services Tax
(GST). Whether it is GST registration, filing returns, or complying with GST regulations, Pradeep &
Associates provides comprehensive support, helping clients avoid compliance pitfalls and achieve
seamless operations.

In conclusion, R.N. Khanna & Co. stands tall as a stalwart in the Auditing and Tax Consultancy
Services domain, fostering long-lasting relationships with clients through their unwavering
commitment to excellence. With their vast experience, skilled team, and prime location, they are well-
positioned to meet the financial needs of businesses and individuals, ensuring continued success for
years to come.

I would like to express my gratitude towards MR Nitin Khanna to provide me this opportunity to
work under him and refine my research and analytical abilities.

2
 Chapter- 2

Industry Profile-

History:

The Institute of Chartered Accountants of India was established under the Chartered Accountants Act,
1949 passed by the Parliament of India with the objective of regulating the accountancy profession in
India. ICAI is the second largest professional accounting body in the world in terms of number of
membership and number of students after the AICPA. It prescribes the qualifications for a Chartered
Accountant, conducts the requisite examinations and grants certificate of practise. After much debate
in the Indian Constitution Assembly the term chartered was accepted. When the chartered accountants
act came into force on 1 July 1949 the term chartered accountants superseded the term registered
accountants. This day is now celebrated as chartered accountants day every year.

In 1930 it was decided that the govt. of India should maintain a register called the register of
accountants. Any person whose name is in that register will be known as registered accountant Later
the Indian Accountancy Board was established to advise the Governor General of India on
accountancy and finance. But it was felt that the profession was largely unregulated. Hence just after
the independence in 1947 an expert committee was setuped to look after this matter. The committee
recommend an autonomous body of accountant should be formed to regulate the profession. The
government of India accepted the recommendation and passed the Chartered Accountants Act in 1949.

Under section 3 of the said act, ICAI is established as a body corporate with perpetual succession and
a common seal.

ICAI is a governed council which consist of 19 members. 15 members are elected from amongst the
member for a period of 4 year. The remaining 4 councils are elected by the government of India.

The two main work of accounts industry is of taxation and audit. Below is a detailed study in both of
them: -

3
Detailed study on taxation –

Taxation is a term for when a taxing authority, usually a government, levies or imposes a financial
obligation on its citizens or residents. Paying taxes to governments or officials has been a mainstay of
civilization since ancient times. Taxation is differentiated from other forms of payment, such as market
exchanges, in that taxation does not require consent and is not directly tied to any services rendered.
The government compels taxation through an implicit or explicit threat of force. Taxation is legally
different than extortion or a protection racket because the imposing institution is a government, not
private actors.

Taxation in India encompasses various taxes, including income tax, goods and services tax (GST),
corporatetax, customs duty, excise duty, and more.

Types of taxes :-

 Income Tax: It is a direct tax levied on individuals, businesses, and other entities based on
their income. The Income Tax Act governs various aspects of income tax, including
exemptions, deductions, and tax rates.

 Corporate Tax: Companies in India are subject to corporate income tax, which is based
on their taxable profits. The tax rates may vary depending on the turnover and type of
company.

 Customs Duty: This is a tax levied on goods imported into or exported out of India. It
helps regulate tradeand protect domestic industries.

 Excise Duty: Although GST replaced most indirect taxes, excise duty is still applicable to
certain goods likealcohol and tobacco.

 GST : Goods and Services Tax (GST): Introduced in 2017, GST is a unified indirect tax
that replaced multiple stateand central taxes, streamlining the taxation system for goods
and services across the country.

Tax deducted at source (TDS)- Tax Deducted at source of income. A certain percentage of tax is

4
deducted by the payer at the time of making payments to the receiver, and this amount is then remitted
to the government. TDS is applicable to a wide range of income categories such as salaries, interest
on fixed deposits, rent, commissions, etc. TDS helps prevent tax evasion and understanding it is crucial
for both payers and receivers of income in India.

Advance tax - Advance tax is the income tax that is paid in advance instead of lump sum payment at
year end. It is the tax that you pay as you earn. These payments have to be made in instalments as per
due dates provided.

Tax Structure In India :-

Tax are important and largest source of income for government in a developing country like India.
The government uses the collected money in the form of tax for various development projects in the
country .

There are two types of taxes in India - Direct and Indirect tax. The direct tax includes income tax, gift
tax, capital gain tax, etc while indirect tax includes value-added tax, service tax, goods and service
tax, customs duty, etc.

Tax Authorities: The administration and enforcement of tax laws in India are handled by the Central
Board ofDirect Taxes (CBDT) for direct taxes and the Central Board of Indirect Taxes and Customs
(CBIC) for indirect taxes

Taxation for Foreign Companies: Foreign companies operating in India are subject to taxation based
on theirbusiness activities, presence, and permanent establishment in the country.

Minimum Alternate Tax (MAT): MAT is applicable to companies that are eligible for deductions and
exemptions under the Income Tax Act but have paid low or no income tax due to various exemptions.
Itensures that companies pay a minimum amount of tax.

Taxation of Capital Market Transactions: Different capital market transactions, such as equity trading,
derivatives, and commodity trading, are subject to specific tax treatments, including Securities
TransactionTax (STT) and Commodities Transaction Tax (CTT).

Tax Dispute Resolution: Taxpayers can seek dispute resolution through various forums like the
Income TaxAppellate Tribunal (ITAT) and Advance Ruling Authority to address tax-related disputes.

Real Estate Transactions: Real estate transactions in India are subject to various taxes, including stamp
5
duty, registration charges, and capital gains tax, depending on the nature of the transaction and the
holding period.

Tax Deductions for Research and Development (R&D): Companies engaged in R&D activities can
claim taxdeductions under Section 35 of the Income Tax Act for eligible expenses incurred in research
and development.

Advance Ruling: Taxpayers can seek an advance ruling from the Authority for Advance Rulings
(AAR) toobtain clarity on the tax implications of a specific transaction before undertaking it.

Place of Supply Rules: GST follows specific rules to determine the place of supply for goods and
services, which governs the applicability of Central GST (CGST) and State GST (SGST) or Integrated
GST (IGST).

Taxation of Digital Goods and Services: The government has introduced provisions to tax digital
goods andservices, including software, e-books, and streaming services, under the GST regime.

Tax Deductions for Donations: Taxpayers can claim deductions for donations made to eligible
charitable institutions under Section 80G of the Income Tax Act.

The taxes in India can be divided into 2 types of taxes:

 Direct taxes

 Indirect Taxes

Direct taxes :- Direct taxes are imposed on corporate entities and individuals. These taxes cannot be
transferred to others. For individual taxpayers like you, the most important type of Direct tax is the
income tax. This tax is levied during each assessment year (1st April to 31st March). As per the Income
tax act 1961, it is mandatory for you to make income tax payments if your annual income is above the
minimum exemption limit. You can get tax benefits under various sections of the Act.

Different types of taxes under direct tax :-

1. 1.Income tax

2. Capital gain tax

3. Corporate tax

6
Income tax:- An income tax is a tax paid by the individual or entities in respect of the income or profit
earned by them commonly known as taxable income. Income tax is generally computed as the product
of a tax rate times The slab rate of taxation is announced by central government in the annual budget.
You can also get some deduction in taxation after investing in some tax saving scheme.

Capital Gain Tax:- Capital gains tax apply to the profits from the sale of a capital asset only. The
rate of tax on capital gains depends on the type of capital gain.

There can be two types of capital gain taxes:-

 Short term capital gain tax

 Long term capital gain tax

Short-term capital gains are when the assets are sold within a specified period, for example:

Corporate Tax:-

A corporate tax is a tax on the profits of a corporation. The taxes are paid on a company's taxable
income, which includes revenue minus cost of goods sold (COGS), general and administrative
expenses, selling and marketing, research and development, depreciation, and other operating costs.

Corporate tax rates vary widely by country, with some countries considered to be tax heavens due to
their low rates. Corporate taxes can be lowered by various deductions, government subsidies, and
tax loopholes, and so the corporate tax rate , the rate a corporation actually pays, is usually lower than
the statutory rate; the stated rate before any deductions.

7
 Tax slabs in India :-

Old Tax Regime New Tax Regime

Tax Slab (₹) Old Tax Rates Tax Slab (₹) New Tax Rates

0 – 2.5 lakh 0% 0-3 lakh 0%

2.5 lakh – 5 lakh 5% 3 lakh – 6 lakh 5%

5 lakh – 10 lakh 20% 6 lakh-9 lakh 10%

10 lakh & above 30% 9 lakh-12 lakh 15%

– – 12 lakh-15 lakh 20%

– – 15 lakh & above 30%

Deduction under Income Tax –

The income tax department views to encourage saving and investment amongst the taxpayers have
provided deductions from taxable income under chapter VIA deductions. 80C being the most famous
,there are other deductions which are beneficial for the taxpayers to reduce their tax liability .

Following is the table which will help you in understand the deduction for the income tax payers :-

 Section 80C- Insurance

 Section 80CCC - Insurance Premium

 Section 80CCD – Pension Contribution

 Section 80TTA – Interest on Saving account

8
 Section 80GG – House rent paid

 Section 80E – Interest on education loan

 Section 80D – Medical insurance

 Section 80DD – Disabled Dependent

 Section 80DDB – Medical expenditure

 Section 80U – Physical disability

 Section 80G – Donations

 Section 8080GGC – Contribution to political parties

 Section 80TTB- Interest Income

Process of filing income tax for clients :-

 Collecting Information – The first and foremost step of filing income tax return is to collect
the information of various sources of income of client such as salary , business profit ,
investment , rental income etc . Also documents related to deduction , expenses and
investment which makes him eligible for tax deduction .

 Verification and organizing – The collected information needs to get reviewd to ensure the
accuracy and compliance . The organize the data into relevant categories to streamline the
filling process .

 Preparing the ITR – Based on the documents , the income tax return for their clients it require
filling of different forms as per tax laws .

 Calculating taxes – Based on total income of the client and after deducting all the exemption
and applying the applicable tax rate . The total tax liability needs to get calculated .

 Review – In this stage the client reviews all the entries made at the income tax portal . Any
necessary adjustment are made at this stage .

 Filing the return- After the approval of income , the tax return is filied via income tax website
or government website .
9
 History of Taxation in India:

 During Ancient and Medieval Periods: In ancient and medieval India, taxation played a crucial
role in governance. Different forms of taxes, such as land revenue, custom duties, and trade
taxes, wereprevalent to finance the administration.

 During British Rule: Under British rule, the British East India Company introduced various
taxes to finance its operations and maintain control over Indian territories. Land revenue, salt
tax, and income tax wereamong the significant sources of revenue.

 During Independence and Post-Independence Period: After India gained independence in

1947, a comprehensive income tax law was introduced in 1961, known as the Income Tax Act,
1961. It replaced the earlier Income Tax Act of 1922 and laid the foundation for the modern
taxation system inIndia.

 Indirect Taxes: The central and state governments imposed various indirect taxes like excise
duty, customs duty, and sales tax. In 2017, the Goods and Services Tax (GST) was introduced,
subsuming multiple indirect taxes and unifying the tax system across the country.

 Economic Reforms: In the early 1990s, India underwent significant economic reforms,
liberalizing the economy and simplifying tax laws to promote investment and economic
growth.

 For Foreign Companies and Non-Residents: Over the years, tax provisions were introduced to
tax foreign companies’ income and non-residents’ income in India.

Detailed Study on Auditing-

The process of verification and examination of the financial records and statements of a firm to ensure
their accuracy and compliance with accounting standard and legal regulation. In India, auditing is
governed by companies act of 2013 and the ICAI regulates the profession of Auditing.

10
The types of audit are statutory audits, internal audits, tax audits, and concurrent audits, each serving
specific purposes for different stakeholders

1. Statutory Audits: These are mandatory audits conducted for all companies under the Companies
Act, 2013. The objective is to provide an independent opinion on the company’s financial
statements, ensuring their accuracy and compliance.

2. Internal Audits: Many companies also conduct internal audits to assess their internal controls,
risk management processes, and operational efficiency. Internal audits help identify areas for
improvement and enhance overall governance.

3. Tax Audits: Tax audits are performed under the Income Tax Act, 1961, and are mandatory for
businesses with annual turnover exceeding a specified limit. The purpose is to ensure proper
maintenance of books of accounts and compliance with tax laws.

4. Audit rotation – The companies Act 2013, introduced mandatory rotation audit for certain
companies to enhance auditor independence and bring fresh auditing process. The act stipulates a
compulsory rotation of auditor after a specified tenure.

Auditing of Small and Medium Enterprises (SMEs)- SMEs have specific auditing requirements, and
the government has introduced simplified auditing standards for smaller entities to reduce compliance
burdens.

Auditing of Government Companies: Government-owned companies and public sector undertakings

aresubject to auditing to ensure fiscal discipline, transparency, and efficient use of public funds.

Auditing of Public Private Partnership (PPP) Projects: PPP projects, where private entities collaborate
withthe government, are subject to audits to ensure transparency, accountability, and proper risk-
sharing mechanisms

Auditing of Not-for-Profit Organizations: Non-profit entities, such as NGOs and charitable

organizations, undergo auditing to demonstrate accountability and compliance with the laws governing
their operations.

Sustainability Reporting Audits: Some companies voluntarily undertake sustainability reporting to

disclose their environmental and social impact. Auditors review these reports to ensure accuracy and

11
compliance withsustainability standards.

History of Auditing in India:-

 During Ancient India: The concept of auditing can be traced back to ancient India, where
records of financial transactions were maintained, and scribes were responsible for
examining and verifying these records.

 During Maurya and Gupta Empires: During the Maurya (c. 322-185 BCE) and Gupta (c.
320-550 CE) empires, efficient accounting systems were in place to manage revenues and
expenditures of the state.

 During Mughal Period: The Mughal rulers continued the practice of maintaining financial
records and employed accountants known as “Diwan-i-Wazarat” to manage the state’s
finances.

 During British Rule: The British East India Company introduced modern accounting
practices during the colonial period. The Companies Act, 1850, mandated companies to
have their accounts audited byindependent auditors

 Chartered Accountancy in India: The Institute of Chartered Accountants of India (ICAI)

was established in 1949 under the Chartered Accountants Act, 1949. It is the premier
professional accounting body responsible for regulating the profession of chartered
accountancy in India.

Auditing Services Process:-

 Planning: Before commencing the audit, : R.N. Khanna & Co. collaborates with the
client to plan theaudit process. They define the scope, objectives, and timelines for
the audit engagement.

 Data Collection: The auditing team gathers relevant financial and operational
data from the client, including financial statements, records, and other necessary
12
 documents.

 Audit Procedures: : R.N. Khanna & Co. performs a series of audit

procedures, including examination, verification, and analysis of the client’s
financial data. They assess the accuracy, completeness, and compliance with
accounting standards and regulations

 Reporting: After completing the audit procedures, : R.N. Khanna & Co. prepares an
audit report. The report includes findings, observations, and recommendations,
highlighting any identified weaknesses or areas of improvement.

 Presentation and Compliance: The audit report is presented to the client, and
the auditing teamdiscusses the findings and recommendations. If there are
any compliance issues, : R.N. Khanna & Co. may assist the client in
addressing and rectifying them.

 Follow-up: R.N. Khanna & Co. may conduct follow-up engagements to ensure
that the client has implemented the recommended improvements and to verify the
effectiveness of the suggested solutions.

Growth -

The profession of Chartered Accountancy has grown leaps and bounds during the last few decades
with a continuous development path being followed ahead. From a traditional Munim role – taking
care of the preparation of books of accounts/ auditing, the profession has gained growth and has new
avenues for the Chartered Accountants and students. With the rise in demand of skilled professional
in finance, accounting and auditing the chartered accountancy has seen significant growth.

Below mentioned are some factor which contribute to the growth of CA industry in India :-

1. Increase in business environment - India right now is facing significant growth in industries both
small and large industries. These industries require skilled professional for there financial service
such as auditing, ITR filing and also for the prepration of financial statements.

13
2. Economic Growth – India is one of the fast growing economy around the world. As the country
expands more and more companies from all around the world are coming to India and they require
highly qualified Cas for the financial services.

3. Regulatory changes – Regular updates and improvisation in tax laws and other financial
regulations creates regular demands for CAs in the country who are well equipped with financial
knowledge.

4. It is important to note that CA industry has experienced growth in past few years / decade but the
profession is highly competitive and aspiring CAs need to pass tough examination and gain
practical experience before they become certified.

Statistics-

The accountancy market consists of revenues generated by firms engaged in designing, preparing and
auditing accounting records. The Indian accountancy market had total revenues of $13.6bn in 2020,
representing a compound annual growth rate (CAGR) of 7.7% between 2016 and 2020.The advisory
segment was the market's most lucrative in 2020, with total revenues of $6.5bn, equivalent to 47.5%
of the market's overall value. Advisory was the most successful segment for the accountancy market
in 2020, due to the fact that accountancy firms have increased their consultancy offerings. Indian
accounting service market is expected to grow at an impressive rate during the forecast period . The
market is driven by government initiatives . This has increased after the introduction of GST the
market has seen good growth . The introduction of GST has enabled the business to remodel their
supply chains in order to take advantages of new tax structure .

Based on services offered the market can be divided as tax preparation services, bookkeeping services
payroll services and others . The major player operating in the accounting service market are PWC
,Deloitte, KPMG and EY . These major companies are developing advanced technologies and
launching new services in order to stay competitive in the market.

14
15
 Regulatory Framework-

The Institute of Chartered Accountants in India (ICAI) is a statutory body established by an act of
parliament viz. The Chartered Accountants Act 1949 for the regulation of the profession of chartered
accountants in the country. The CA industry mainly works around companies act and taxation laws,
security regulation and business specific regulation.

The Institute Of Chartered Accountant In India (ICAI)

The Institute of Chartered Accountants in India (ICAI) is India's largest professional accounting body
and worlds 2nd largest professional accounting body under the administrative control of Ministry of
corporate affairs , Government of India . It was established on 1 July 1949 as a legal body under
the Chartered Accountants Act of 1949 enacted by the parliament for promotion, development and
regulation of the profession of Chartered Accountancy in India.

ICAI plays significant role in regulating the conduct of its members and takes actions against members
who are found guilty.

Headquarters- New Delhi

Formation – 1 July 1949 (74 years ago)

President – Aniket Sunil Talati

Vice President- Ranjeet Kumar Agarwal

Parent Org.- Ministry of corporate affairs & Government of India

 Members of the Institute are known as ICAI Chartered Accountants or ICAI Accountants

16
Mission Of ICAI– To achieve excellence on professional competence add value to business and
economy, safeguard public interest, ensure ethical practise and good corporate governance while
recognising the need of globalisation.

Vision Of ICAI – The profession of chartered accountants in India should be the benchmark of
professional excellence upholding the principle of integrity, transparency and accountability

17
 Chapter - 3

3C Analysis-

Company :

R.N. Khanna & Co. was incorporated in the year 1972 by Mr. Rajendra Narain Khanna. With
over 3 decades of prominence, the firm is distinguished not only by the depth and scope of
its advisory services but also by the extensive experience in Assurance and Tax Management
services for all entities. R.N. Khanna & Co. is a professionally managed firm. The firm
provides tailored support in the development and management of the accounting function for
small, medium and large sized businesses. Throughout its history, R.N. Khanna & Co. has
built its practice on the tradition of integrity, professional excellence and value, to the client's
cause. Equipped with competent professionals and restructured resources the firm continues
to grow and provide allied services. It is a professionally managed firm consist of different
CAs, corporate financial advisor and tax consultants. Those associated with the firm have
regular interaction with industry and other professional which enables the firm to keep pace
with contemporary development and to meet the need of its client.

R.N. Khanna & Co. has a clear vision for the future growth and development of financial
market and service to stay ahead of these trends and development . R.N. Khanna & CO. moulds
its operation and areas of competencies and introduces services so as to assist client i n their
business operation and growth.

Corporate services -

 Incorporation of company
 Consultancy of company law matters.
 Advisory planning for merger, Acquisition, De-mergers, and corporate re-organization
 Filing of annual returns and various forms, documents.
 Clause 49 review for compliance with fiscal, corporate and tax laws.
 Secretarial matters including share transfers.
 Maintenance of statutory records
 Consultancy services on Public/Rights/Bonus issue of shares.
 Change of name, objects, Registered office, etc.
18
Services Offerings -

 COMPANY REGISTRATION
The most common business composition is to register a Pvt. Ltd. Company. Company registration
will enable limiting the person liability of promoters to the extent of paid up capital. Promoters must
get DIN & check availability of the company name.

 ONE PERSON COMPANY

Registration one-person company (u/s 2 (62) of companies Act 2013) for quick start of your business
within reasonable fees by experienced CA firms.

 LLP REGISTRATION
Limited liability partnership (LLP) has benefit of the company registration & easiness of partnership.
it is for small businesses. Experienced CA firms can ease out the process within reasonable fees.

 GST REGISTRATION

GST registration of business is to enable selling of goods with turnover value beyond certain limit.
Limit may differ from state to state. It is necessary to get GST Input tax credit. Experienced CA firms
can ease out the process within reasonable fees. The process of GST registration involves submitting
various details and documents related to the business, its owners, and financial information to the
Goods and Services Tax Network (GSTN) portal. After verification of the provided information, the
registration is granted, and the business becomes a registered taxpayer under the GST regime.

 PROJECT FINANCING
Companies need funds to grow their business. Experienced CA can prepare project report for loan
financing to ensure that you get best eligible amount in the shortest time. Generally, fees are charged
as percentage of financed amount.

 ROC FILING

Periodic returns/forms need to be submitted to registrar of companies (ROC) for company’s act
compliance. Experienced CA firms can file timely & correct ROC filing in reasonable overall cost.

 GST RETURN

19
GST returns to be filed on periodic basis by business to provide information about value turnover &
total GST Liability and mode of payment. Frequency may differ from state to state. Delays will attract
penalty. Experienced CA Firms can insure compliance with reasonable fees.

 TDS RETURN
Income tax act requires TDS (Tax deducted at source) Deduction file the TDS return on periodic basis
by monitoring TAV no.

 INCOME TAX (SALARIED)

Income tax return of salaried employee can be filed with help of form 16 & form 16A from 26 AS
will help you in getting information about TDS on salary. Experienced CA firm can help you from
better task tax planning and reduce the TDS.

 INCOME TAX (BUSINESS)

Income tax returns Filing is requirement of income tax act for companies/businesses .Tax audit reports
helps in compliance of income tax laws. Experienced CA firms can help in reducing noncompliance
of income tax laws.

 TALLY ACCOUNTING

Tally is most used accounting software. Small and medium sized business can take services from CA
firms who can allocate accounts to handle accounting for your business.

 SATUTORY AUDIT
Get the Statutory audit of your company under Companies Act from experienced ca firms. Sagittarius
is compulsory for any type of company.

 TAX AUDIT
Tax audit is a requirement of income tax act for companies /Large businesses. Tax audit report helps
in compliance of income tax laws & Highlights, key tax related information. Experienced CA Forms
can help in reducing noncompliance of income tax laws.

 INTERNAL AUDIT

Internal audit & Internal financial control testing is needed as per companies act. Internal audit is not
as compulsory as statutory audit. Internal auditor can add value to your business to arrest leakage and
improve control and efficiency.
20
Customer :

A customer analysis of a Chartered Accountancy (CA) firm involves understanding the firm's current
and potential customers, their needs, preferences, and behavior. It helps the firm identify its target
market and develop effective strategies to attract and retain clients. Here are some key aspects to
consider when conducting a customer analysis for a CA firm:

 Identify Target Customers: Determine the types of clients the CA firm caters to, such as
individuals, small businesses, startups, large corporations, non-profit organizations, etc. Different
customer segments may have distinct accounting and financial needs.

 Demographics: Analyze the demographics of the firm's existing clients and potential clients,
including age, gender, location, industry, and income levels. This information helps tailor services
and marketing efforts to specific groups.

 Financial Needs: Understand the specific financial needs of different customer segments. Some
clients may require assistance with tax planning, auditing, financial reporting, or business
consulting. Identifying their needs will help the firm offer relevant services.

 Buying Behavior: Study the buying behavior of clients. Analyise how they find and choose CA
firms, what factors influence their decision-making process, and how they perceive the firm's
reputation and credibility.

 Customer Satisfaction: Assess the satisfaction levels of existing clients through surveys or
feedback. Understanding what clients value the most and areas where the firm can improve can
lead to better service delivery.

 Competitive Analysis: Research competitors and understand their customer base. Identify areas
where the CA firm can differentiate itself and offer unique value to attract new clients.

 Industry Trends: Stay updated on industry trends and changes in regulations that may impact
clients. Being proactive in addressing these changes can demonstrate the firm's expertise and
attract clients seeking reliable guidance.

21
  Customer Retention: Analyze client retention rates to understand how effectively the firm is
maintaining long-term relationships. High retention rates indicate client satisfaction and loyalty.

 Communication Channels: Identify the most effective communication channels to reach the target
audience. This may include social media, email marketing, website, networking events, or
referrals.

 Customer Lifetime Value: Calculate the lifetime value of a client to determine the long-term
profitability of the firm's customer base. This analysis helps in prioritizing efforts to retain valuable
clients.

 Referral Sources: Understand where the firm's current clients are coming from, such as referrals,
online searches, or advertising. Leveraging successful referral sources can lead to more clients.

 Client Feedback and Testimonials: Gather and analyze client feedback and testimonials. Positive
feedback can be used to showcase the firm's expertise and build trust with potential clients.

By conducting a comprehensive customer analysis, a CA firm can better understand its clients and
adapt its services and marketing strategies to meet their needs effectively. This understanding
ultimately leads to increased customer satisfaction, retention, and overall business growth.

The customer of these firms can be individual taxpayers or business. The services provided to them
are generally of accounting , auditing , tax consultancy and other services related to finance.

The following list includes some of the customers of a CA firm :

1) Individual : CA firm provide tax related assistance for the individual and salaried employees . They
assist in filing income tax return, tax planning and also provides investment advices. They also help
in reducing the tax liability of the taxpayers.

2) Business: All types of business weather its small , medium , large are a important customers of a CA
firm. As they offer various services to them as such as book keeping , prepration of financial
statements , compliance of tax laws and also provides them advisory services to make a better financial
decisions.

3) Corporations: Large corporations and multinational companies require complex financial reporting,
auditing, and tax planning services . CA firm help these corporations maintain compliance with
accounting standard and tax regulations.
22
4) Non-Profit Organizations: A non profit organization (NPO) is a legal entity operated for social
benefit without aiming to generate profit for its owner . key aspects of nonprofit accountability ,
trustworthiness etc. NPO’s require specialized accounting services to ensure transparency in their
financial transactions.

5) Startups & Entrepreneurs: Recently the trend of startups has been seen a high growth in recent
years. These startups require highly qualified CAs to help them in preparing financial , they also help
them in income tax return filing and sometimes these CAs also help them in raising funds from
investors.

6) Financial institutions: CA firms may also provide financial services to financial institutions like
banks and credit unions by providing them auditing and assuramce services.

Competitors:
Competitors are a vital elements of a business , because of competitors you can find the flaws of you
company / business . Competition in business is the contest between several firms selling similar
goods or services. Different companies attempt to meet the same consumer needs with their version
of a product and, when successful, earn more revenue as people choose to buy their offering.
Competitive business environments demand that each firm attempts to address consumers' concerns,
such as product quality, price and functionality. These pressures generally result in companies
producing innovative products and attempting to offer lower prices, directly benefiting the consumer.

Types of competitors :-

 Direct competitors:- Direct competitors offer a product addressing a near equivalent

consumer need. For example, two brands selling dual-sided kitchen sponges are direct
competitors

 Indirect competitors:- An indirect competitor sells the same product but with different
aims. An accounting firm that works primarily with small businesses might be an indirect
competitor to a major accounting firm serving large corporations.

 Replacement competitors - Replacement competitors sell products that differ from yours
but could threaten to replace the consumer's need for your product.

23
  There can be many competitors of a CA firm in India , they can be either small CA firms
or large CA firms. Below we have discussed some large CA firms in India .

Key benefits of competitor analysis :-

Competitor analysis is regarded as a central element in business planning and controlling. There are
four key benefits of competitor analysis.

 Industry benchmarking

All companies compare themselves with similar companies in the same industry their strengths and
weaknesses.

 Learning from competitors

Companies usually study their similar market experiments to those which they are planning.

 Positioning

Companies try to identify their competitor’s strengths when choosing competition methods, either by
cutting the product price to exercise cost leadership or by launching a new product or services to
achieve product specialization.

 Identifying opportunities and threats

Competitors analysis links with the traditional strength, weaknesses, opportunities, and threats
(SWOT) analysis for handling both business opportunities and threats of the company.

R.N. Khanna & Co. is a firm which has many small and big competitors as the profession CA is
increasing day by day . Below we have dicussed some of the companies which provide same services as
R. N. Khanna & Co .

1) Deloitte-

In terms of revenue , the deloitte is the largest professional service network in the world. Also on the
basis of a number of professional it is the largest professional service network in India.

Deloitte is known for providing tax , auditing , consulting and financial advisory services to more than
200,000 professional in over 150 countries . Deloitte says that they believe in helping clients to become
leaders .
24
2) PWC-

Price waterhouse coopers has been the worlds second largest service network in term of revenue as
surveyed in 2014 and one of the Big four auditor firms and stands neck to neck with KPMG and other
companies.

The firm believes in helping solving complex issues and identifies options . People from all
backgrounds such as arts , business , economies and more are entertained here .

3) KPMG-

Headquarter in Netherland . KPMG has been considered as one of the largest service companies in
the world .

Amongst big four firms of India . The professional employed in KPMG is 162,000 people and
performs three services that is auditing , tax, advisory .

4) EY-

Ernst and young also known as EY is multinational service firm having its headquarters in London .
Its is ranked third largest service firm in terms of revenue and one of the big 4 company

5) Grant Thornton International –

Grant Thornton is a UK based firm which has its branches in almost 125 countries. The firm is known
for generating very high revenue which is more than 4.5 billion dollars.

It is providing service in assurance , tax ,and advisory firms . Grant Thornton is also known for
providing service in assurance and taxation and other consultancy services related to financial matters
. It makes the professional to adapt to market conditions and deals with complex events or transactions
. The member office of Grant Thornton is situated in New Delhi.

6) RSM Internationals-

RSM ranks 7th largest among the professional services network for audit , tax , advisory firms. It takes
pride in holding the 6th rank as the largest global provider of tax services in the world. It is fully
independent member firms and correspondents in 111 countries surveyed , September 2014.

Three of the original member firms of the organization are Robson Rhodes , Salustro Reydel , RSM
MCGladrey & Pullen .
25
7) SS Kothari , Mehta & Co-

Kothari’s have more than 55 years in existence. One of the highly reputed firm in Delhi and ahs
branches in 100 other countries. Has presence in all the regions of the country with 6 offices and 20
associates. With a combination of partners and associates , it has covered almost all the parts of the
country.

Offers services in BPO , Tax advisory services , Merger and Acquisition , Statutory audit services ,
Corporate laws and other different areas.

8) Sahni Natrajan & Bahl (SNB)-

SNB is a national Indian firm which is based in Delhi and provides its services in the field of audit ,
consulting , accounting and allied areas. Established in 1981 as one of the leading firms in India having
its headquarter in New Delhi and branch office in Mumbai and Bangalore.

It is known for providing services in various areas like taxation , auditing and internal audit , corporate
laws and other services .

26
 Chapter- 4

Organizational Structure:

An organizational structure is a system that outlines how certain activities are directed in order to
achieve the goals of an organization. These activities can include rules, roles, and responsibilities.
Any operating organization should have its own structure in order to operate efficiently. For an
organization, the organizational structure is a hierarchy of people and its functions. These
classification are made with regard to rank, importance, seniority, power status, or authority. A
hierarchy of power is called as a power structure.

Depending on the organizational values and nature of the business, organization tend to adopt the
structures for management purposes.

 Partners
 Senior managers
 Managers
 Supervisors
 Senior trainee students
 Junior trainee

Partners are often the founders of the firm , most of the firm name are associated with the name of the
partners . Partners mostly communicate with the senior manager for the progress report and any
inquiry is made from the senior managers only. Managers are required to give updates regarding the
work to senior managers . Senior managers are a qualified CAs having more than 10 years of working
experience .

R.N. Khanna & Co. is having head office in Lucknow. All the controls and regulations are made at
the head office in Lucknow . The office constitutes different numbers of department who basically
handles their respective functions .

27
 Department Profile of a CA company

 Audit and assurance department

Firm provides audit and assurance services to a wide ranges of clients which include performing audits
of financial statements of limited companies, NGOs and partnership firms. Audit focuses on business
issues and the matters that can impact on the financial statements. Service are aimed to comply with
legal requirements as defined under the various laws laws and regulations. In doing so the firm not
only identify the non – compliance but also assist clients in rectification, designing remedial measures
and provides guidance to adhere with the laws and regulations.

Firms always endeavour to meet reporting deadlines as set out by the laws and regulations or as
mutually agreed with client without compromising the professional, legal and ethical requirements .
Firms always place priority to deploying audit teams to client who are well equipped with the specific
industry knowledge , experience and are professionally sound.

 Tax and corporate department

Firm delivers taxation services to client and assist them in obtaining optimal tax benefit available
under the laws . Firm also assist the client to comply with the tax and regulations and always keep
them updated with the latest development and amendments . Tax personnel are qualified professional
, experienced and knowledgeable . We maintain a comprehensive tax library which always provides
ready references and timely solutions in complex situation . Firms provide a range of tax services
which includes:-

 Preprations and submission of annual tax returns

 Tax advisory services

 Personal income tax services

 Representation and litigation with tax authorities .

 Correspondence department

It handles with all the correspondence of the firm by sending the solicited and unsolicited information
from time to time . Effectively and efficiently manage day to day operations of the correspondence .
28
 Interact with client to resolve policy and customer issues. Identify trends and remove obstacles in
statements production and delivery by properly maintaining record of all communication for future
references .

 HR department

This department is mainly concerned with recruitment , hiring / firing of the firm and this department
presents the timely reports on effective utilizations of the resources by the firm . A purpose of the
human resources is to keep the trained employees and recruit new staff to work . Another purpose of
this department is to provide a good working environment for staff and try to make by facilitating
them and arranging some recreational activities for them . HR knows the real worth of its employee
so cares for them and motivate them to work more efficiently and diligently.

The hierarchy adopted by R.N. Khanna & Co. is in accordance with the legal structure of a CA firm
shall have. Although the ICAI rules permit of not having the supervisor and does not make it
mandatory having senior manager and manager , yet this goes as additional benefits for the firm having
such an extensive hierarchy .

 Customer relation department

This department focuses on maintaining strong relationship with clients . They handle client enquires
, concerns or issues . This department plays a vital role in providing satisfaction to client and retaining
long term business relationships .

 Marketing department

The marketing team plans , create and distributes the promotion for the firm. They may also take on
other business and image-related responsibilities. To function in the most efficient manner possible,
marketing teams may divide their responsibilities into different positions.

Each of these individuals helps the marketing department to perform well and therefore plays an
important role in the overall function of the organization.

 Legal and Compliance department

The Compliance and Legal team ensures that the firm adhere to allregulatory requirements and
professional ethics. They stay updated with changes in tax laws, maintain proper documentation, and

29
address any legal issues that may arise. This department plays a critical role in safeguarding the
company's reputation andensuring compliance with industry standards.

Here the point to be noted down is that being a sole proprietor , R.N. Khanna doesn’t have elaborate
departmental structure typically large firms. The focus is on specialized services within a relatively
compact team, and employees may have cross-functional responsibilitiesto efficiently cater to client
needs.

The structure might evolve over time as the companygrows and takes on more clients and employees.
As the business expands, R.N. Khanna & Co. may consider introducing additional management layers
and specialized departments to streamline operations and accommodate a larger workforce.

To sustain growth and success, R.N. Khanna & Co. should continue nurturing client relationships,
adapting to changes in the economic and regulatory landscape, and leveraging technology to enhance
operational efficiency. Additionally, fostering a culture of continual learning and compliance with
ethical and legal standards will be vital in maintaining their reputation and competitiveness in the
market.

30
 Chapter - 5

SWOC Analysis:
SWOC analysis examines the strength, weakness, opportunities and challenges that a firm faces.
SWOC analysis is a tried and true tool that enables a company like R.N. Khanna to compare its
business performance to that of its competitors. It will give us a strategic analysis of its internal and
external environment which is crucial for understanding the SWOC. SWOC analysis is important
because its important for business development , risk assessment , decision making , resource
allocation , communication and collaboration .

Overall , SWOT analysis is a simple yet effective tool for gaining insights into an entity’s current state
and making informed decisions to drive success and growth .

Below is an report on SWOC analysis of R.N. Khanna & Co.:-

1) Strengths –

a) Expertise – The firm is equipped with highly qualified CAs who has in depth knowledge and expertise
in the field of finance. These CAs help there client in auditing, tax consulting and other finance related
works. Sometimes they also help in preparing the financial statements of the company and also in
raising funds for future operations.

b) Client base – The firm has a diverse and loyal client base which includes individual taxpayers , small
and medium business , and organisation.

c) Industry experience – The firm has years of industry by serving many types of different different
clients on day to day basis . which has helped them in getting specialized knowledge in every sector
and also to understand the sector specific challenges.

d) Professional network – After working in the same industry from almost 2 decades the firm has built a
strong relations with banks , financial institutions , legal experts and other professional that can help
the firm to resolve a client related issues.

e) Reputations – The firm has earned reputation by providing high quality services and delivering reliable
financial solutions to clients .

f) Location advantage – Being located Lucknow the capital of Uttar Pradesh . provides the firm with the
access to a vast clientele and potential business opportunities.
31
2) Weaknesses –

a) Technology adoption – The firm delays in adopting new technology and often use the old
accounting software which give their competitors the first mover advantage which leads to potential
inefficiencies.

b) Communication skills – Through communication skill one can express their views and thought on
a particular topic more clearly . Lack of communication skills effects the employees productivity
, work relation and will not be able to satisfy the need of the client.

c) Client retention – The firm is not able to retain its client one of the main reason is high services
rate , secondly this can be also because of highly competitor market.

d) Sole Proprietorship: As a sole proprietorship, the company's growth might be limited due to
financialconstraints and a reliance on the owner's resources and expertise.

e) Recruitment Difficulties: Hiring and retaining skilled professionals can be more challenging for a
small company compared to larger firms, as they might struggle to offer competitive salaries or
benefits.

f) Growth Potential: As the company expands its client base or takes on more complex projects, the
limited human resources may hinder its ability to scale up and handle increased demands.

3) Opportunities –

a) Niche specialization – The CA specialization is one of the niche specialization in the country as its
one of the hard course to pursue not many people are able to clear the CA exam because of this its
creates an opportunities for the existing CA to make the most of it .

b) Market Demand – The demand of CA has been a rise because of regular change in the tax laws ,
complex regulations and economic fluctuations. They help in educating these changes to the general
public.

c) Merger and Partnership – The CAs in the country also help in merger and partnership between two
or more firms , they form a strategy and also find the best way to amalgamate . Through this the firms
expands their client base and service offering.

32
d) International expansion – With the view of expansion , expanding abroad is one of the best options
of the firms here. By expanding abroad the firm will get the chance to serve the clients across borders
, establishing global partnership and also to make a name on the world stage like the big 4 firms.

e) Online Presence: Establishing a strong online presence through a website and social media platforms
can enhance visibility, attract new clients, and improve accessibility to services.

4) Challenges –

a) Competition- These CA firms are facing immense competition in the market firstly from other CA
firms and secondly from accounting service provider and even technologies companies entering into
this scene .

b) Regulatory compliance – With the rapid change in tax laws and accounting standard its sometimes
very hard for the CA to coupe with every change as it requires training and professional development
This results in lack of trained people which reduces the workplace productivity , loyalty and
management .

c) Client retention – With many players into the scene its sometime hard for the firm to retain every
customer that they have served .

d) Economic factors – The performance of the firm can be depended on economic cycles , affecting
the overall demand of the financial services . The performance also depends on the outside business
environment of the firm .

e) Data security challenges – CA firm needs to protect clients critical data . These data includes
financial statements , ITR filing , GST filing , data related to company structure. For this a company
should use genuine software and should also invest in anti virus software . Because of this the cost
may go high but it will ensure the safety of the data of client .

Concluding the SWOC analysis of R.N. Khanna & Co. we can say that ,

Strengths – Experienced firm with years of establishment , offers a wide range of services such as
auditing and tax consultancy , with a diverse client base .

Weakness- Limits access to capital and requirement because of being a sole proprietorship limits the
growth opportunity and expansion of the company .
33
Opportunities – Can expand its service and reach and can consider converting into different legal
entity for growth opportunity.

Threats – Intense competition form big and majorly small firms and also the regular change in tax
laws and regulations impacts business.

34
 Chapter- 6

Learning Outcomes:

During my one month internship as a intern in R.N. Khanna & Co. , I learnt about direct and indirect
taxation along with bookkeeping . Earlier I just had theoretical knowledge on all of these topics but
because of the opportunity provided to me I was able to gain some practical knowledge . During my
internship I understood how there firm works and achieve their goals and objectives . Under my guide
Mr. Nitin Khanna I learn the basic concepts of taxations ,residence status got intro with form 16 .Apart
from this I learned what is previous year , assessment year , five heads of income, tax slabs , tax
payable and refund scenarios and how income tax return is filled.

Also I was able to learn how to learn bank statements and how to pass the same entries in tally , this
helped me in understanding the financial transaction and the process of recording it in the accounting
software . My experience in accounting software has helped me to understand the importance of
accurate recording which helps in maintaining and organizing the financial statements .

During my 30 days of my internship I was also able to work on my soft skills such as time management
and communication skills as I had to work in professional environment in which I had to manage my
times and have to talk to clients on regular basis . I have gained experience in working as part of a
team with other professional and contributing toward the goal of the organization .

Interacting with client during the internship helped me develop strong communication skills , enables
me to strong interpersonal skills and helps me to address their financial needs effectively.

Finally , the industry exposure gained during my internship has provided me with

valuable insights into the accounting and finance profession. It has helped me envision various career
paths and has confirmed my passion for this field.

The practical knowledge and experience gained during my internship have instilled confidence in my
abilities and have motivated me to further excel in the accounting and finance domain. As I reflect on
the learning outcomes, I realize how valuable each experiencewas in shaping my professional growth.

35
Below mentioned is some of the task that I performed during my internship –

 Data entry

 Direct and Indirect Taxation

 ITR filling

 Maintenance of accounts

 Theoretical learning of different types of taxation and GST

Software used during my internship :-

 MS Excel

 Tally ERP 9

36
 Chapter- 7

CONCLUSION

I would like to conclude this report by saying that this internship was a valuable experience for me .
I learned many new things in the field of accounts / finance. Throughout my internship I gained
practical knowledge on complex topics such as taxation , financial management . I also enhanced my
technical skills by working on software such as tally prime and MS excel . I would like to thank R.N.
Khanna & Co. and specially Mr. Nitin Khanna sir for providing me this opportunity to work under
him and gain the industry experience. Throughout the internship tenure I connected with so many new
people , clients and learnt a lot of thing in the filed of direct taxation , bookkeeping etc. Throughout
my internship I also worked and developed on my communication skills

With the exposure to variety of clients I was able to understand the dynamics of industry and the
critical role accountants play in ensuring the financial health of the company . The supporting and
encouraging environment at the office helped me in understanding the concept of teamwork and they
pushed me towards personal growth .

I understood how income tax and GST portal works and how important is it to co- ordinate with
different level of management which helps the company to achieve its goals .

This internship has helped me in shaping my career and solidifying my passions for pursuing a career
in finance . I will be always grateful for the guidance and mentorship received from the team which
has contributed to my professional development .

I am looking forward to continue the process of learning and keeping myself aware of the change pre-
taining to accounting and upgrading my technical skills from time to time. I would like to express my
feelings towards everyone who has helped/ mentored me during this internship . Very thankful to
mentors from the college and the management for the constant supervision , encouragement and the
opportunity to have my internship completed.

37
 Internship guide report tracker

Meeting No. Date Discussion Guide’s Signature

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

38