Chapter- 1

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1949 the term chartered accountants superseded the term registered accountants.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: -

1
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 taxableprofits. 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 applicableto 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
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.
2
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.

3
Real Estate Transactions: Real estate transactions in India are subject to various taxes, including
stamp
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 charitableinstitutions 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.Income tax

4
 1. Capital gain tax

2. Corporate tax

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.
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.

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

5
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 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 by independent 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,: Vijayan & Co. collaborates with
the client to plan the audit 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 documents.

 Audit Procedures: : Vijayan & 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

6
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.

Mission Of ICAI– To achieve excellence on professional competence add value to business

and economy, safeguard public interest, ensure ethical practice 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.

7
 Chapter 2

Auditing and Advisory

 Corporate governance reviews

 Special Audits
 Internal Audits
 Inventory/receivable audits
 Investigation Audits
 Due diligence
 Risk Managements
 Credit monitoring services
 Valuation & Feasibility studies

 Formation of Companies / LLPs

 Filings with ROC
 Registration and modification of charges
 Company Law Matters
 XBRL filings
 Search atatus reports to bank

8
Taxation

 Direct tax consultancy

 Excise Duty
 Customs Duty
 Sales Tax
 VAT

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
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

9
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.

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:

10
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.

4) Non-Profit Organizations: A nonprofit 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.

11
 Chapter- 3

Learning Outcomes:

During my one month internship as a intern 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 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 reflecton the learning outcomes, I realize how valuable each experience
was in shaping my professional growth.

12
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

13
 Chapter- 4

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. and 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- training 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.

14