Page 1 of 38

A SUMMER INTERNSHIP REPORT

SUBMITTED BY

Divyanshu Raj

Registration No:12111272
in partial fulfilment of Summer Internship for the award of the
degree of

BACHELOR OF BUSINESS ADMINISTRATION

(BBA IT)

Mittal School of Business

LOVELY PROFESSIONAL UNIVERSITY

Phagwara, Punjab

June – July, 2023

 Page 2 of 38

Certificate
 Page 3 of 38

Feedback Form
Page 4 of 38
 Page 5 of 38

DECLARATION

I, Divyanshu Raj , student of Lovely Professional University, enrolled in the Bachelor in

Business Administration in Information Technology program (2021-2024), hereby declare
the following:

This project report titled "Ashwani Choudhary & Co." is based on my original work and
research, conducted under the guidance of CA Mr. Ashwani Choudhary sir
To the best of my knowledge, neither this report nor any part of it has been previously
submitted to any institution or university for the award of any degree program.

Signature:

Divyanshu Raj

Place: Delhi

Date: 1-08-2023
 Page 6 of 38

ACKNOWLEDGEMENT

While words cannot fully express the depth of my gratitude, I want to extend
my sincere appreciation to everyone who has helped and encouraged me
throughout this project. Their contributions have had a significant impact on my
thinking, behavior, and actions during my studies.

I would like to express my particular thanks to Lovely Professional University

for including summer training as a part of the BBA degree program. This
experience proved invaluable in completing this project, and I am grateful for
the strong and unwavering support provided by the Mittal School of Business,
LPU. I especially appreciate the unwavering assistance extended by the
department members, whose continuous support greatly facilitated the
completion of this project.

I am also deeply indebted to the many individuals who have influenced the
shape and content of this project, as well as those who offered their support
throughout. Mr. Ashwani Choudhary (CA), of Ashwani & Co., deserves special
mention for his constant availability, guidance, gentle encouragement, and
active support, all of which were instrumental in the successful completion of
this project.
 Page 7 of 38

EXECUTIVE SUMMARY

• Practical experience: Internships provide an opportunity to apply

classroom knowledge to real-world scenarios, fostering
professional and personal development.

• Skill development: Working with chartered accountants helps

interns hone skills like discipline, professionalism, and
communication.

• Bridging the gap: Internships bridge the gap between theoretical

knowledge and practical application, solidifying understanding of
accounting principles.

• Learning from experience: The report will delve into the author's
45-day internship experience, highlighting challenges faced and
valuable lessons learned.
 Page 8 of 38

Contents

A SUMMER INTERNSHIP REPORT ................................................................................................. 1

BACHELOR OF BUSINESS ADMINISTRATION (BBA IT) ......................... 1
LOVELY PROFESSIONAL UNIVERSITY................................................... 1
• Practical experience: Internships provide an opportunity to
apply classroom knowledge to real-world scenarios,
fostering professional and personal development. ................ 7
• Skill development: Working with chartered accountants
helps interns hone skills like discipline, professionalism, and
communication. .................................................................... 7
• Bridging the gap: Internships bridge the gap between
theoretical knowledge and practical application, solidifying
understanding of accounting principles. .............................. 7
• Learning from experience: The report will delve into the
author's 45-day internship experience, highlighting
challenges faced and valuable lessons learned.7
 Page 9 of 38

INTRODUCTION TO THE PRODUCT UNDERTAKEN

1.1 About the Accounting Industry

1.1.1 What is Accounting?

Accounting is the systematic recording, analyzing, and interpretation of a

company's financial data. This information is presented to regulatory agencies,
tax authorities, and management for decision-making purposes. Financial
statements produced through accounting offer concise summaries of a
company's operations, financial health, and cash flows over a designated period.

1.1.2 The Accounting Industry in India

The Indian accounting industry emerged in the early 20th century with the
establishment of chartered accountancy firms. It has undergone significant
evolution, keeping pace with economic and business shifts. Today, India boasts
a large accounting sector, including both domestic and international firms. The
industry is highly regulated, with professional bodies establishing and enforcing
standards. India's accounting workforce is one of the largest worldwide, with
over 250,000 chartered accountants and a similar number of cost and
management accountants.

1.1.3 Growth Drivers

Several factors fuel India's accounting industry expansion:

Robust economic growth: India's rapid economic development creates

continuous demand for professional financial services.
Rising middle class: Increased financial literacy among India's growing middle
class further boosts demand.
Ease of doing business: The government's emphasis on improving the ease of
doing business drives businesses to seek expert guidance on navigating complex
regulations.
 Page 10 of 38

1.1.4 Accounting Duties

Accountants play a vital role in financial decision-making, possessing a

specialized skill set that enables them to handle various essential business
functions. Key responsibilities include:

• Payroll management
• Tax preparation and reporting
• Financial statement preparation and analysis
• Tracking and recording assets
• Maintaining accurate financial records
• Identifying areas of financial inefficiency
• Deterring financial fraud and irregularities

Types of Accounting

1. Governmental Accounting: This specialization concerns itself with

tracking public expenditures at all levels of government, ensuring that
funds are used as authorized and in accordance with budgets.

2. Private Accounting: Private accountants work within specific businesses

and organizations, managing various internal financial tasks. Their work
typically undergoes review by external auditing firms.

3. Internal Auditing: Internal auditors provide in-depth examination of

financial and accounting records, along with an organization's
operational processes. They ensure accuracy and compliance with
regulations.

4. Forensic Auditing: This highly specialized field focuses on detecting

fraud. Forensic auditors employ their understanding of fraud patterns to
gather evidence for legal investigations. Advancements in technology
have expanded this field, increasing demand for this expertise.

5. Financial Accounting: Financial accountants systematically record and

compile an organization's financial transactions, producing
 Page 11 of 38

comprehensive financial statements. These statements are intended for

external stakeholders, like investors, creditors, and lenders.

6. Managerial Accounting: This area provides crucial insights into various

aspects of financial management, including budgeting, marketing,
operations, and information systems. Managerial accountants support
decision-making by giving a broad understanding of an organization's
financial position.
Tax & Corporate Department: Firm delivers taxation services to clients and
assists them in obtaining optimal tax benefits available under the laws. Firm
also assist clients to comply with the tax rules and regulations and always keep
them updated with the latest developments and amendments. Tax personnel are
qualified professionals, experienced and knowledgeable.

We maintain a comprehensive tax library which always provides ready

references and timely solution in complex situations.

Firm provides a comprehensive range of tax services which includes;

Preparation and submission of annual tax returns
• Compliance services
• Tax advisory services
• Representation and litigation with tax authorities
• Personal income tax services
In Ashwani Choudhary & Co. same staff is handling with tax matters as well as
corporate sector. While in corporate firm provides different kinds of services
relating to corporate sector from incorporation to winding up of a Company.
 Page 12 of 38

About the Company

I choose to work with Ashwani Choudhary & CO. During this internship I
have learnt many new skills. Before internship I have only theoretical
knowledge about work in organisation but now I have practical some
practical experience of working in organisation. Now I have knowledge
about the organisation’s working environment and how organisations work
and achieve their goals and objectives.

This internship has to gives me the understanding of business and also

about the elements of strategic thinking, planning and implementation, and
how these things are applied in a real world organisation environment.

Following are the objectives that I have in my mind before working as an

internee.

• To improve communication skills.

• To analyze the business situation.
• To establish high standard in professionalism.
• To learn more than the theoretical knowledge.
• To learn book keeping practices of different companies.
• To apply the theoretical knowledge in actual organisation.
• To compare practical aspects with theoretical aspects.
• To make quick decision in real situation.
• To learn how to promote and to conduct research in business area.
• To promote my personal knowledge and professional preparation for
future.
• To properly integrate my theoretical knowledge and practical work.
• To plan for the future of oneself and learn how to adjust in an
organisation.
• To know how to present your recommendations in front of your boss.
• To get knowledge of opportunities and threats while entering into an
organisation.
• To get exposure to do a work in an organisation and also known about
organisational
behaviour, ethical rules and regulations.
 Page 13 of 38

INTRODUCTION TO THE TOPIC AND PROBLEM STATEMENT

The problem which I faced during the internship was related to the Goods and
service taxes regarding its filing so in this chapter we are going to discuss in
detail about GST its types how types of GST are there and what are the
problems I faced during their filing.

What is GST-:

GST Image The Goods and Services Tax (GST) is the successor of the Value
Added Tax (VAT) on the delivery of goods and services in India. GST is a
digitalized version of VAT that allows you to track the products and services.
The taxes slabs for VAT and GST are the same. It is a multistage, destination
based tax that is comprehensive: It is comprehensive because, with the
exception of a few state taxes, it has absorbed practically all indirect taxes. The
GST is imposed at every stage of the production process, but it is intended to be
refunded to all parties in the various stages of production other than the final
consumer, and as a destination-based tax, it is collected from the point of
consumption rather than the point of origin, as previous taxes were. For tax
collection, goods and services are separated into five tax slabs: 0%, 5%, 12%,
18%, and 28%. Petroleum items, alcoholic beverages, and electricity, on the
other hand, are not taxed under GST and are instead taxed independently by
individual state governments, as was the old tax structure.[Citation required]
Rough precious and semi-precious stones are taxed at 0.25%, and gold is taxed
at 3%.[1] In addition, a 22% surcharge or other charges on top of the 28% GST
is levied on a variety of things, including alcoholic beverages, luxury
automobiles, and tobacco products.[2] Prior to GST, the statutory tax rate for
most items was around 26.5%; post-GST, most commodities are likely to be
taxed at around 18%.

Types of GST-

A) (IGST) Integrated sales and Taxes- The Integrated goods and Services
Tax (IGST) is a tax levied under the GST regime on interstate (between
two states) supplies of products and/or services, as well as imports and
exports.

For example, if a dealer from West Bengal sells items for Rs.5,000 to a
consumer in Karnataka, IGST will apply because the transaction is
interstate. If the products are subject to an 18% GST, the trader will
charge Rs.5,900 for them. The IGST collected amounts to Rs.900, which
 Page 14 of 38

would be paid to the Central Government.

B) (SGST) State good service and taxes- The State Goods and Services Tax
(SGST) is a tax levied under the GST regime on intrastate (inside the
same state) transactions. Both State GST and Central GST are charged on
intrastate supplies of goods and/or services.

For example, If a West Bengal dealer sells items worth Rs.5,000 to a

West Bengal client, the GST applicable on the transaction will be a
combination of CGST and SGST. If the GST rate charged is 18%, it will
be split evenly into 9% CGST and 9% SGST. In this situation, the total
sum charged by the trader will be Rs.5,900. The money generated by
GST under the heading of SGST, i.e. Rs.450, will be distributed to the
West Bengal state government in the form of SGST.

C) (CGST) Central Goods and services taxes- The Central Goods and
Services Tax (CGST), like State GST, is a tax levied under the GST
regime that is levied on intrastate (inside the same state) transactions. The
CGST Act governs the CGST. The Central Government is in charge of
collecting the CGST income.

For example, As previously stated, if a merchant from West Bengal sells

items worth Rs.5,000 to a consumer in West Bengal, the GST applicable
on the transaction will be a combination of CGST and SGST. If the GST
rate charged is 18%, it will be split evenly into 9% CGST and 9% SGST.
In this situation, the total sum charged by the trader will be Rs.5,900. The
Central Government will receive Rs.450 from the money generated by
GST under the heading of CGST.

GST R1&R3-

GSTR-1 is a form that keeps track of all outward supplies of goods and
services made by a registered dealer. A registered dealer is required to
file a monthly or quarterly return. GSTR-1 serves as the foundation for
the completion of all other GST return forms. Taxpayers should use
extreme caution and care when completing this form. Page 17 of 44
GSTR-3B keeps track of your monthly transactions and compiles a
monthly summary of your returns. Every month, as a taxpayer, you must
report the total worth of your business purchases and sales. The income
tax Department (ITD) will compute your invoice claims based on the
monthly transaction report once you file this return.
 Page 15 of 38

If it does not match the preliminary details you submitted, you will be in
big trouble.

Remember to submit a GSTR-3B for each GSTIN. Pay the Tax Liability
on or before the GSTR-3B's last filing date. Before submitting, double-
check any errors because it cannot be changed.

GSTR1-

A)Who Should File GSTR1-

• Input Service distributor (ISD)

• Composition Dealer

• Non-resident taxable person

• Taxpayer collecting tax at source (TCS) or deducting tax at source.

B) Identification Required for Filing GSTR1-

• Goods and Service Tax Identification Number (GSTIN)

• User ID and password to sign in to the GST portal

• Valid digital signature certificate (DSC) • Aadhaar card number if e-signing

the form

•Valid and working mobile number as mentioned on Aadhaar card. C)

Important Details while Filing the form-

• GSTIN Code and HSN code.

• Transaction Category

• Invoice.

• Change of Location.

• Digital Signature Certificate (DSC).

• E-sign.
 Page 16 of 38

GSTR3-

A) Who Should File GSTR-3B-

• Non-resident taxable person

• Composition Dealers

• Input Service Distributors

• Suppliers of Online Information and Database Access or Retrieval

services (OIDAR).

B) Information required to file GSTR-3B-

Your GSTIN number

• the business’ legal registered name

• Details of sales and purchases if accountable for reverse charge

• Details of inter-state sales made to buyers under the composition

scheme. Also, details of unregistered buyers and Unique identification
number (UIN) holders Eligible Input Tax Credit

• Value of nil-rated, non-GST and inward supplies • Payment of tax

• TCS/TDS credit (Tax Calculated at Source/Tax Deducted at Source).

C) Important Details while Filing the form-

• GSTIN Code and HSN code.

• Transaction Cate Invoice.

• Change of Location.

• Digital Signature Certificate (DSC).

• E-sign.
 Page 17 of 38

Problem Statement of GSTR-1 AND GSTR-3-

GSTR1-

A) Accurate Invoice Reporting: Keeping adequate records and accurately

reporting all invoices issued throughout the tax period is one of the most
difficult aspects of completing GSTR-1. For each transaction, the
taxpayer must include information such as the invoice number, date, the
customer's GSTIN (Goods and Services Tax Identification Number), and
the taxable value.

B) Correct Tax Classification: varying types of supplies are subject to

varying GST tax rates. It is critical to ensure that the correct tax rate is
applied to each transaction in order to avoid errors in the return. Some
commodities, for example, may be exempt from GST, while others may
have a lower or standard rate.

GSTR3B-

a) Timely Compliance: To avoid penalties and interest on late filing,

taxpayers must be diligent in filing their forms by the due dates
mentioned.

b) Input Tax Credit Reconciliation: It is critical to ensure that the input

tax credit claimed in GSTR 3B corresponds to qualifying purchases and
the details provided in GSTR-2A. Any inconsistencies must be corrected.

c) Technical Difficulties: The GST return filing process is digital and is

based on the GSTN (Goods and Services Tax Network) portal. Technical
challenges or malfunctions might occasionally delay the timely filing of
returns.
 Page 18 of 38

LITERATURE REVIEW

In this literature review we are going to examine the use of blockchain as

a new accounting tool to create safe, shared, verifiable, and agreed-upon
record-keeping in order to increase accounting transparency and
confidence.

Definition of Block chain-

Blockchain is described as a type of distributed ledger technology (DLT)

or a type of financial technology (FinTech). Others view blockchain as a
sequential database or a giant spreadsheet that surpasses the classical
financial ledger by recording transactional information, secured by
cryptography, and governed by a consensus mechanism.

The variety of definitions of blockchain reflect how different disciplines

interpret it from various perspectives, indicating that a single definition is
distant. Blockchain is a protocol—a way of doing things—for
documenting transactions, not a particular technology. Unlike the
Internet, where data is shared, ownership in a blockchain may be
transferred from one person to another. For various reasons, blockchain is
a desired model. In a market with several transacting participants, for
example, it might eliminate the need to reconcile various ledgers. Being
spread across all users also avoids disruptions and the cost of having to
pay a central authority to maintain the ledger's correctness. Any
participant in the ledger may retrace all prior transactions, providing for
more transparency and self-auditing blockchain.

Blockchain characteristic and topology –

The primary characteristics of blockchains are transparency,

decentralization, immutability, tamper resistance, strong authentication,
synchronized networks, and consensus In other words, blockchain
technology allows anything of value, not just finance, but also assets like
intellectual property, health data, votes, and ideas to be transferred.
Various generations of blockchain technology have been defined based
on the target audience. Blockchain 1.0 allows for digital money
transactions. Smart contracts are used in Blockchain 2.0. Blockchain 3.0
broadens its uses beyond bitcoin and banking to include governance,
health care, and supply networks. Blockchain 4.0 refers to the application
 Page 19 of 38

of blockchain and AI in tandem. Blockchain technology, which

emphasises access rights and authorization to validate transactions, may
be configured differently such that various users have varying access
permissions to record, amend, and validate transaction records. The scale
of the network, the rights to join the network, and the approach of
validating transactions typically separate public and private blockchains.
Control, data ownership. Privacy, and are prominent critical design
factors that assist organisations identify which sort of blockchain works
best for their purposes. A public and permissionless blockchain, such as
Bitcoin, has multiple nodes and allows anybody to participate as a
miner/validator and examine the underlying ledger. However, due to the
vastness of the dispersed network, reaching a consensus is costly and
time-consuming. A private and permissioned blockchain, on the other
hand, has much fewer participating nodes, and potential users must obtain
permission to participate in mining/validating transactions and access the
underlying ledger. Because identities are known, less blind faith is
necessary in private blockchains, and so private blockchains are quicker
and less expensive. This design can safeguard the privacy and
confidentiality of corporate information.

Emergent Literature on blockchain-

In recent years, studies have examined uses of blockchain in FinTech,

supply chains, and corporate governance Some have explored topics such
as blockchain, smart contracts, cryptocurrency regulation and Bitcoin,
this is because blockchain, cloud computing, AI, and lot can support
businesses to build dynamic capabilities for digital transformation.
Blockchain has the potential to enhance the accounting profession by
reducing the costs of maintaining and reconciling ledgers, and providing
absolute certainty over the ownership and history of assets.

The following cases exemplify the advantages of blockchain’s various

broad technological applications whereby it can:
A) Transform AI.

B) technologically develop digital currencies, privacy assurance,

cybersecurity, and smart contract security.

C) achieve the scalability of data management and consensus protocols.

D) develop the interoperability of incentives, governance, and legal

ethics of ecosystems.
 Page 20 of 38

E) enable business economically.

F) generate value for most types of FinTech innovations including AI.

G) enhance auditable and verifiable data management to simplify and

secure the management of trusted information.

H) improve business, healthcare, lot, privacy, and data management

within the multiple domains of supply chains.

Block Chain in Accounting-

Blockchain could help accountants gain clarity over the available

resources and obligations of their organisations, and also free up
resources to concentrate on planning and valuation, rather than
recordkeeping.

Alongside other automation trends such as machine learning, blockchain

will lead to more and more transactional-level accounting being done –
but not by accountants. Instead, successful accountants will be those that
work on assessing the real economic interpretation of blockchain records,
marrying the record to economic reality and valuation. For example,
blockchain might make the existence of a debtor certain, but its
recoverable value and economic worth are still debateable. And an asset’s
ownership might be verifiable by blockchain records, but its condition,
location and true worth will still need to be assured.

By eliminating reconciliations and providing certainty over transaction

history, blockchain could also allow for increases in the scope of
accounting, bringing more areas into consideration that are presently
deemed too difficult or unreliable to measure, such as the value of the
data that a company holds. Blockchain is a replacement for bookkeeping
and reconciliation work. This could threaten the work of accountants in
those areas, while adding strength to those focused on providing value
elsewhere. For example, in due diligence in mergers and acquisitions,
distributed consensus over key figures allows more time to be spent on
judgemental areas and advice, and an overall faster process.

Implications of block chain for auditors-

The transition to a financial system with a major blockchain component

opens up several prospects for the accounting profession. Accountants are
regarded as specialists in record keeping, the application of complicated
 Page 21 of 38

rules, business logic, and the establishment of standards. They will be

able to direct and External auditing can benefit from lock chain.
Confirming a company's financial status becomes less important if some
or all of the transactions underlying that status are available on
blockchains. This idea would result in a significant shift in the way audits
are conducted. When integrated with suitable data analytics, a blockchain
system might assist with the transactional level claims necessary in an
audit, allowing the auditor's abilities to be better spent evaluating higher-
level problems.

Auditing, for example, involves not just verifying who a transaction

occurred between and the monetary amount, but also how it is
documented and categorised. These judgemental elements often require
context that is not available to the general public, but instead require
knowledge of the business, and with blockchain in place, the auditor will
have more time to focus on these questions.

How professionals can work with block chain-

Influence how blockchain is incorporated and utilised in the future, as

well as design blockchain-led solutions and services.

To become truly an integral part of the financial system, blockchain must

be developed, standardised and optimised. This process is likely to take
many years – it has already been nine years since bitcoin began operating
and there is much work still to be done. There are many blockchain
applications and start-ups in this field, but there are very few that are
beyond the proof of concept or pilot study stage. Accountants are already
participating in the research, but there is more for the profession to do.
Crafting regulation and standards to cover blockchain will be no small
challenge, and leading accountancy firms and bodies can bring their
expertise to that work. Accountants can also work as advisers to
companies considering joining blockchains themselves, providing advice
on weighing the costs and advantages of the new system. Accountants’
mix of business and financial nous will position them as key advisers to
companies approaching these new technologies looking for opportunity.
 Page 22 of 38

Skills needed for future-

Accountants will not need to be engineers with detailed knowledge of

how blockchain works. But they will need to know how to advise on
blockchain adoption and consider the impact of blockchain on their
businesses and clients. They also need to be able to act as the bridge,
having informed conversations with both technologists and business
stakeholders. Accountants’ skills will need to expand to include an
understanding of the principal features and functions of blockchain – for
example, blockchain already appears on the syllabus for ICAEW’s ACA
qualification. The elimination of the requirement for reconciliation and
dispute resolution, together with enhanced confidence about rights and
duties, will allow for a greater focus on how to account for and examine
transactions, as well as an extension of what areas may be accounted for.
Many present accounting department operations may be improved using
blockchain and other modern technologies like as data analytics or
machine learning, increasing the accounting function's efficiency and
value.
 Page 23 of 38

RESEARCH METHODOLOGY

Problem Statement of filing GSTR1 AND 3B in Detail-

4.1.1 Problem Statement of GSTR1-

A) GSTR-1 has distinct filing deadlines based on the taxpayer's turnover.

Monthly filers typically have until the 10th of the following month to file,
whereas quarterly filers have until the 13th of the following month. It is
critical to meet these dates in order to avoid late filing fines.

B) If there are any errors or omissions in the previously submitted GSTR-

1, the taxpayer must correct them in succeeding periods. To ensure
compliance, accurate and timely modifications are required.

C) To maintain adequate tax compliance, the problem statement for

filing GSTR-1 relies around accurately and timely reporting all important
facts of external supplies.

D) For various sorts of supplies, including inter-state and intra-state sales,

exports, and exempt supplies, the taxpayer must give information such as
invoice details, taxable value, and tax amounts.

Problem Statement of GSTR3B-

A) The ability to claim input tax credit is a critical component of GSTR-

3B. Taxpayers can credit taxes paid on purchases (input tax) against sales
taxes (output tax). However, there are precise requirements and laws that
govern ITC claims, and taxpayers must guarantee that they claim only
valid credits and do not profit from them.

B) GSTR-3B is a monthly return that provides a fast overview of taxes;

nevertheless, it must be reconciled with other returns and documents. It
must, for example, be reconciled with GSTR 1 to confirm that the
outward supplies recorded in GSTR-3B correspond to the data stated in
GSTR-1.

C) If inaccuracies are found on the GSTR-3B, taxpayers must correct

them in subsequent periods. To remain in compliance with GST
 Page 24 of 38

requirements, timely and precise modifications are required. 4.2 Scope of

study of filing GSTR1 AND GSTR3B-

A) The rate of submitting GSTR-1 is determined by the taxpayer’s annual

turnover. If the taxpayer’s annual turnover exceeds a certain threshold
(currently INR 5 crores), they can file GSTR-1 on a quarterly basis.
GSTR-1 must be reported monthly for those whose annual turnover
exceeds the threshold.

B) If there are any errors or omissions in the prior GSTR-1 return,

taxpayers can amend them in the subsequent return. Corrections can be
made up to a certain point in time, and it is critical to correct any errors to
ensure accurate reporting.

C) The GSTR-1 filing deadline varies depending on the taxpayer’s

turnover and filing frequency. It usually falls on the 10th, 11th, or 13th of
the next month for monthly filers and on the 30th or 31st of the following
month for quarterly filers. Failure to file GSTR-1 by the due date may
result in penalties and late fees.

D) GSTR-1 forms can be submitted electronically using the GST portal.

Taxpayers can log in to their GST portal accounts, fill out the GSTR-1
form, and submit it electronically. They can either file it themselves or
seek the help of a GST Suvidha Provider (GSP) to finish the process.

E) Taxpayers who make supplies to clients in other states must record

these transactions to the IRS as IGST. The IGST is a hybrid of the
Central GST (CGST) and the State GST (SGST). Taxpayers must record
CGST and SGST details separately for supplies within the same state.

F) The GSTR-1 filing deadline varies depending on the taxpayer’s turnover

and filing frequency. It usually falls on the 10th, 11th, or 13th of the next
month for monthly filers and on the 30th or 31st of the following month
for quarterly filers. Failure to file GSTR-1 by the due date may result in
penalties and late fees.

GSTR3B-

A) GSTR-3B is a monthly return required of taxpayers registered under

the Goods and Services Tax (GST) system. Its purpose is to offer a
 Page 25 of 38

summary of the tax liability for a specific tax period. A calendar month is
typically used as the tax period. The GSTR-3B must be filed by the 20th
of the following month. For example, the July return must be submitted
by the 20th of August.

B) Taxpayers must declare their entire taxable outward supplies on

GSTR-3B. Outward supplies comprise both intra-state and inter-state
commodities. Taxpayers must report the Central GST (CGST) and
State/Union Territory GST (SGST/UTGST) components separately for
intra-state supplies. Integrated GST (IGST) is applicable for inter-state
supplies, and taxpayers must declare the IGST amount.

C) Purchases and Input Tax Credit (ITC) Reporting: GSTR-3B also

requires taxpayers to declare any eligible Input Tax Credit (ITC). The
ITC is a tax credit available to taxpayers for taxes paid on inward supply
(purchases). Certain conditions must, however, be met in order to claim
ITC. Among other things, the provider must have properly disclosed the
specifics of the supply in their GSTR-1, and the recipient must have
received the goods or services.

E) Taxpayers must make a payment for their net tax liability based on the
information supplied in GSTR-3B. The net tax liability is determined by
subtracting the entire output tax liability from the total eligible ITC. The
payment must be made before the GSTR-3B return is due. E) GSTR-3B
offers a description of various tax liabilities that may be applicable in
addition to reporting sales, purchases, and input tax credit. For example,
if a taxpayer is required to pay tax via the reverse charge mechanism
(RCM), the RCM liability must be reported separately in GSTR-3B.

Objectives Behind filing GSTR1 and GSTR3-

GSTR1-

A) Tax calculating: The data supplied in GSTR-1 is used to compute the

taxpayer's tax due for the applicable tax period. The GST rates, taxable
values, and other information supplied in the return are utilised to
calculate the amount of tax that the taxpayer must pay or refund.

B) Informing the government: GSTR-1 is critical in supplying the

 Page 26 of 38

government with information about the country's overall economic

activity and trade flow. It enables the government to track corporate
transactions, analyse industry trends, and make sound policy decisions.

C) Compliance and Transparency: GSTR-1 is a mandatory requirement

under GST law for compliance and transparency. Filing it on time and
correctly is critical for businesses to be in compliance with GST
requirements. Transparent and accurate reporting of outward shipments
via GSTR-1 aids in the development of trust between businesses and tax
authorities, as well as the promotion of a fair and effective tax system.

D) Input Tax Reconciliation: Reconciliation of input tax credits (ITC):

For recipients to reconcile the input tax credit (ITC) they can claim,
accurate and timely filing of GSTR-1 is critical. The input tax credit
method allows firms to claim a credit for GST paid on purchases and use
it to offset their GST payment on sales. Recipients can ensure that they
claim the correct amount of ITC by checking the details in their GSTR-
2A (produced based on the supplier's GSTR-1) with their own records. E)
Reporting Outward Supplies: GSTR-1 is intended to record information
about all outbound supplies made by a registered taxpayer within a
certain tax period. The sale or provision of goods and services to third
parties is referred to as outward supplies. These can be supplies to both
registered and unregistered individuals.

GSTR3B-

A) Tax Payment- GSTR-3B is a monthly return that assists taxpayers in

calculating the amount of tax owed to the government for a certain tax
period, which is normally a month. It is a self-assessment of tax
liability. Taxpayers must record the details of their external supplies
made during the month in the return, including the taxable value and
applicable GST rates (CGST, SGST/UTGST, and IGST). They must
also record the specifics of the inward supply (purchases) that are
subject to reverse
 Page 27 of 38

JOB DESCRIPTION

I have tried my best to enhance my abilities and apply the knowledge

that I gained during the studies. On my first day at firm, they gave me
training session about TDS returns and computerised accounting in tally
software. Also shared his practical experience with me and gave me
some techniques of this process. He also guided me that how to prepare
VAT return and creating data in income tax return preparation software.
Different task that I performed during my internship:
• 1. Maintenance of accounts/ book keeping.
• 2. TDS return preparation.
• 3. VAT returns preparation.

Software used during internship

2. Tally software Overview of TDS Tax deducted at source (TDS) is a tax that
is deducted from income that a company in India pays to a recipient or supplier
if the income amount exceeds a specific statutory limit in a financial year.

The types of income that are subject to TDS include

• Salary.
• Interest and dividends.
• Winnings from the lottery.
• Insurance commission.
• Rent.
• Fees from professional and technical services.
• Payments to contractors and subcontractors.

The withholding amounts for TDS can be deducted from an invoice submitted
by a supplier or from the payment that is issued to the recipient or supplier.
Examples of recipients and suppliers include contractors, providers of
professional services, employees, and real estate landlords.

Companies submit a TDS certificate to each supplier on a monthly or yearly

basis. The certificate includes the payments, as well as information about the
company and supplier. Companies must also submit an annual return to the
government for each recipient or supplier for the financial year. TDS certificate
can be either Form 16 (R75I10A) or Form 26Q-P2P-IND (R75I122EQ). Form
16 is the TDS certificate which an individual submits and Form 26Q is the TDS
certificate which a company submits to the tax authorities. TDS must also be
 Page 28 of 38

deducted from payments issued to third parties by both corporate and

noncorporate entities. The entity must deposit the amount owed for withholding
at any of the designated branches of banks that are authorized to collect taxes
on behalf of the government of India. The entity must also submit the TDS
returns, which contain details about the payments and the challan for the tax
deposited to the Income Tax Department (ITD). For electronic TDS, companies
must generate the Form 26Q for each financial quarter. This is a statutory
requirement for the ITD.

Process flow of TDS

This process flow shows the steps to charge and remit TDS :

• Create vouchers for suppliers with pay status % and applicable tax type
• Calculate TDS on vouchers
• Issue payments to suppliers with TDS amounts deducted
• Submit monthly payment for TDS to tax authority
• Update Challan
• Generate monthly statements and submit quarterly and annual returns

Preparation of VAT returns

At the end of the month or each quarter, you file a VAT return with the tax
office, and remit the VAT due.
Prerequisites You have carried out the activities described in closing for VAT.

Process

1. You prepare a copy of the sales ledger and the purchase ledger. The
ledgers show the invoices that have been paid and on which VAT is thus
due. The ledgers are for your own reference in the event of a checkup by
the tax office.

2. You prepare the VAT return.

3. This consists of two steps.

• You calculate the total amounts of VAT for each tax code.
• You print the VAT return.

4. The system fills out the fields in the VAT return using the totals that you
calculated in the first step.
 Page 29 of 38

5. For information about preparing VAT returns for VAT withheld from
vendors. You file the VAT return with the tax office and remit the taxes.

Compuoffice online software:

Tax Solution for professionals to provide end-end management of every stage

of the tax life cycle - from provision to estimates and extensions. returns, audit,
amendment and planning.

A solution for
• Income Tax Return
• TDS return
• Service tax return
• Balance sheet & audit report
• VAT returns (Raj./UP/MP)
• Checking of assessment orders
• ROC form and filling
• CMA
• AIR return
• Document Management
• Challan All other required forms
• Standard letters to clients
• Standard formats of departmental letters
• Office assistance works & mechanism.
• Various types of reporting.

Features

• Single switch board for all software

• Common client information for all software

• Searching of records by Code No., Name PAN, etc.

• Online auto-update of software

• Defining user rights with grouping facility.

 Page 30 of 38

• Password protection for individual clients

• Active/De-active of individual party from particular/all software

• Single window/screen to input, edit, view and print.

• Front-view buttons for easy understanding.

• User friendly similar layout of all software.

• LAN compatible

• Various data input validation checks to eliminate errors.

• Easy auto backup of your precious data.

• Option to access from any where in the world.

Overview of Tally ERP 9

Journal entry

Journal Vouchers are used to adjust the debit and credit amounts without
involving the cash or bank accounts. Hence, they are referred to as adjustment
entries.

Creating a Journal Entry

Journal entries are usually used for finalization of accounts.

To pass a Journal Voucher,

Go to Gateway of Tally > Accounting Vouchers ·
Click on F7: Journal on the Button Bar or press F7.

For example, there may be entries made for interest accrued or interest due. If
you have to receive Interest from a party, the same can be entered using Journal
Voucher.

1. Debit the Party

2. Credit the Interest Receivable Account

The Journal entry is displayed as shown:
 Page 31 of 38

SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

• ALT+R: Recalls the Last narration saved for the first ledger in the voucher,
irrespective of the voucher type.

• CTRL+R: Recalls the Last narration saved for a specific voucher type,
irrespective of the ledger.

Allowing Cash Accounts in Journals

Journals are adjustment entries, which do not involve Cash account and Bank
account. However in exceptional cases where the user would like to account
Journal entries involving Cash/Bank Account, Tally.ERP 9 has the flexibility of
passing such entries by enabling the option under F12 configuration.

To enable Cash Accounts in Journal voucher,

Set Allow Cash Accounts in Journals to Yes in F12: Configure (Voucher Entry
Configuration).
 Page 32 of 38

To pass a Journal voucher with Cash/Bank Ledger,

1. Go to Gateway of Tally > Accounting Vouchers > Select F7: Journal

2. Press the spacebar at the Debit or Credit field.

The Journal Voucher Screen with Cash/Bank Ledger selection will appear as
shown:
 Page 33 of 38

Debit Note Entry

Debit Note is a document issued to a party stating that you are debiting their
Account in your Books of Accounts for the stated reason or vise versa. It is
commonly used in case of Purchase Returns, Escalation/De-escalation in price,
any other expenses incurred by you on behalf of the party etc.

• Debit Note can be entered in voucher or Invoice mode.

• You need to enable the feature in F11: Accounting or Inventory features.

22 |

• To use it in Voucher mode you need to enable the feature in F11 :

• Accounting Features

• Use Debit / Credit Notes.

• To make the entry in Invoice mode enable the option F11: Accounting
Features

• Use invoice mode for Debit Notes.

• To go to Debit Note Entry Screen,

• Go to Gateway of Tally > Accounting Vouchers

• Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.

• You can toggle between voucher and Invoice mode by clicking Ctrl+V.

• Pass an entry for the goods purchased returned to Supplier A:

 Page 34 of 38

Special Keys for Voucher Narration Field:

ALT+R: Recalls the Last narration saved for the first ledger in the voucher,
irrespective of the voucher type.

CTRL+R: Recalls the Last narration saved for a specific voucher type,
irrespective of the ledger.

Credit Note Entry

Credit Note is a document issued to a party stating that you are crediting their
Account in your Books of Accounts for the stated reason or vise versa. It is
commonly used in case of Sales Returns.

A Credit Note can be entered in voucher or Invoice mode. You need to enable
the feature in F11: Accounting or Inventory features.

· To use it in Voucher mode you need to enable the feature in F11 :Accounting
Features - Use Debit / Credit Notes.

· To make the entry in Invoice mode enable the option F11:

Accounting Features - Use invoice mode for Debit Notes. To go to Credit Note
 Page 35 of 38

Entry Screen:

Go to Gateway of Tally > Accounting Vouchers

Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8.

You can toggle between voucher and Invoice mode by clicking Ctrl+V. Pass an
entry for goods sold returned from Customer A:

Special Keys for Voucher Narration Field:

· ALT+R: Recalls the Last narration saved for the first ledger in the voucher,
irrespective of the voucher type.

CTRL+R: Recalls the Last narration saved for a specific voucher type,
irrespective of the ledger.

LEARNING

I learned through my training program, that how I can

• Improve communication skills.

• Analyze the business situation.

 Page 36 of 38

• Establish high standard in professionalism.

• Learn more than the theoretical knowledge.

• Learn book keeping practices of different companies.

• Apply the theoretical knowledge in actual organisation.

• Compare practical aspects with theoretical aspects.

• Make quick decision in real situation.

• Learn how promote and conduct research in business area.

• Promote my personal knowledge and professional preparation for future.

To properly integrate my theoretical knowledge and practical work.

• Plan for the future of oneself and learn how to adjust in an organisation.

• Know how to present your recommendations in front of your boss.

•Get knowledge of opportunities and threats while entering into an

organisation.

•Get exposure to do a work in an organisation and also known about

organisational behaviour, ethical rules and regulations.
 Page 37 of 38

References

In my work I used different webs to collect information/data which includes .

http://www.icai.org

http://www.wikipedia.com

http://www.investopedia.com

http://www.computex.com
Page 38 of 38