Accounting and GST Services
Accounting and GST Services
Accounting and GST Services
GST SERVICES IN
VIVA & ASSOCIATES
A Project Report
Submitted in partial fulfillment of the requirements
for the Award of degree (Master of Business Administration (GEN.)
2021-2023
I Geetanjali (Course- M.B.A(GEN), 3rd Sem.) would like to declare that the
project report entitled “A STUDY OF ACCOUNTING AND GST SERVICES
” Submitted to Bharati Vidyapeeth University Pune, School of Distance
Education Pune, Academic Study Centre BVIMR New Delhi in partial
fulfillment of the requirement for the award of the degree.
All respected guides, faculty member and other sources have been properly
acknowledged and the report contains no plagiarism.
To the best of my knowledge and belief the matter embodied in this project is a
genuine work done by me and it has been neither submitted for assessment to
the University nor to any other University for the Fulfillment of the requirement
of the course of study.
Geetanjali
ACKNOWLEDGEMENT
I would also like to express special thanks to my supervisor CA Arun Kumar for
his guidance, support and supervision in completion of this report. I would like to
thank all my colleagues with whom I worked together during the internship
programme.
EXECUTIVE SUMMARY
This Report is all about my internship in VIVA & ASSOCIATES. The main
aim of doing internship under CA Firm is to interact with the professional
bodies and gain some practical knowledge about the different organizations. My
Objective of this report is to share my experience during internship period. This
report provides an analysis on the working of the employees and CAs in the
firm. This report is the outcome of the Winter Internship and Summary of my
work which I have done in VIVA & ASSOCIATES. It was a great experience
for me to work here. My theoretical and practical knowledge related to taxation
is helping me a lot.
Through this project report, I have studied about the registration and taxation
services of VIVA & ASSOCIATES. This report has been made to see the
registration and taxation services management is done in VIVA &
ASSOCIATES.
Also, I would like to thank the God Almighty. His blessings help me
everywhere in my life.
TABLE OF CONTENTS
2. Detailed Operation
3. SWOT Analysis
REFERENCES
PART-I:- INTRODUCTION TO THE ORGANISATION
• Particulars of Partners
2 CA Arun
Kumar 34 Partner CA 509677 10.03.11 10.03.11 01.07.18
ABOUT VIVA
Founded in year 2011, VIVA & Associates is a leading and prominent Chartered
Accountant Firm in India, having existence in New Delhi and Gurgaon.
VIVA & Associates is a group of accounting professionals, providing end to end solutions in
diversified fields of business establishment i.e. registration of company in India to regular
compliance and Financial Reporting, Auditing and other areas of Advisory and consultancy.
Firm has valuable professionals who have core competencies to provide all the services of
accounting, finance, compliance with regulations & acts, tax audits etc. under one roof for the
comfort of our clients.
Foreign companies that wish to establish business in India, are helped out by VIVA in
various registration and approval processes as well as frequent compliances that are
applicable as per various laws in India. As soon as the business is registered in India various
compliances are required to be met,
we help our clients have everything outsourced to us that all professional services are covered
that costs a reasonable monthly retainership only. Besides that secrecy is maintained and the
clients need not have to incur costs for keeping an accounting team separately. A better
control by the real owners is thus exercised with this.
VIVA always believes in quality of service and considers client relations as goodwill. Every
client is important to us and we ensure to achieve the highest standards of service to our
clients. Each member of VIVA is committed to be independent, as it helps us to service our
client’s needs in the most effective manner.
ABOUT PARTNERS
CA Vikas Aggarwal
Arun Kumar is a Chartered Accountant and holds a Chartered Accountant’s Degree in 2014
Batch. Arun was a consultant in many companies where he acted as a trusted advisor to the
management. He was involved in budget preparations, variance analysis, process reviews,
drafting, setting up and implementation of standard operating procedures (SOP’s), and was
also part of the recruitment panel. Arun believes in providing business solutions during the
course of carrying out audit, tax and other assignments.
Professional / Social Activities:
Specializes in Statutory Audit, Tax Audit, IFRS Accounting and Auditing, Due diligence,
Valuations, Inspection and Investigations, Transfer Pricing Audit and Compliance audits.
Flair for conducting audits of Large Corporates , Primary dealers, Financial Services and
Manufacturing companies.
Details of experiences with companies:
a. Statutory Audit
b. Internal Audit
This company was started in Delhi. The company is providing financial services to
its customers since 2011 as it was started by CA Vikas Aggarwal in 2011.Firstly
there was 2 partners Ca Vikas Aggarwal and Ca Arun Kumar becomes the partner
of this firm ‘VIVA & ASSOCIATES’ has been able to create long lasting
relationships with their clients through loyalty and trust. They help their clients to
achieve their commercial and personal goals. This enables VIVA &
ASSOCIATES to match capabilities with those needed by our customers to meet
the challenges of tomorrow’s marketplace. It is a company which deals in taxation.
‘Viva & Associates’ is located in Barakhamba Road, Barakhamba Metro Gate No-
1. There is any other branch in Gurgaon.
4. Services
I. COMPANY REGISTRATION
II. OUTSOURCING
III. TAXATION
IV. AUDITING
V. SPECIAL AREAS
I) COMPANY REGISTRATION
iii. LIMITED COMPANY :- Registered and regulated by Companies Act 2013, a public
limited company also benefits its members with limited liability. Applicable rules are
more tough and stringent for a public limited company when compared with a Private
Limited Company.
II) OUTSOURCING
ii. PAYROLL OUTSOURCING :- Employees are backbone of any entity and their
satisfaction is prime concern for any organization. Payroll is something really critical
and secretive for any entity. Happy employees deliver more and contribute towards
organizational goals. We bring to you a complete solution for your payroll needs and
you can rely on us for a full fledge Payroll Outsourcing. Managing everything from
break up, calculations, leaves, labour law requirements, social security registrations,
contributions to issuing relevant documents like payslips, full and final statements,
everything is handled professionally and in such fashion that has no scope for
problems. You will see a dedicated professional team all updated and all hardworking.
Helping you to see your staff satisfied in terms of payroll management is our motto.
There are various provisions of labour law, which are applicable and commonly are
not known, the same can be invoked any time, so to cope up with these things, one
needs to be compliant, which is very easy when you have a source like us.You can
outsource your payroll concerns to us and we will manage it all for you.
• Change in Name
• Change in main objects
• Change in Registered Office within the state
• Change in Registered Office outside the state
• Change in Directors like resignation, appointment, regularization of additional
Directors
• Removal of Directors
• Change in share capital
• Annual filing of the company
• Annual Filing of LLP
• Compliances related to Mergers and acquisition
• ESOP, ESAR compliances
• Section 8 company compliances
• NBFC Compliances
III) TAXATION
➢ We take care of all your corporate tax needs by assisting you in:
• Calculation of Advance Tax and self assessment tax
• Advising and Assisting in Deposition of taxes to avoid huge interest penalties
• TDS withholding and deposition system on a timely basis to avoid the penal costs.
• Issuing required forms within the prescribed time frames
• Regular Assessments
• Litigation assistance
• Counseling with Tax Authorities
2. CAPITAL GAIN AND TAXATION :- According to Income Tax Act, there are two
types of gains from transfer of capital goods, viz.:
• Long Term Capital Gains
• Short Term Capital Gains
Both kind of gains are subject to be included into the income of the transferor.
Taxation of both type of gains is also differently prescribed by the Act. A proper
assessment of nature of gains and thus taxability is important here. There are many
conditions prescribed which can help the taxpayer save the tax by specific
investments. Likewise, losses in the category – inter or the intra head is also allowed
on certain conditions. Therefore, one may conclude that not all the gains mean
payment of taxes. With our professional advice, you may save on the tax through
taking appropriate steps like, making eligible investments, utilization of carried
forward losses etc.
IV) AUDITING
1. FINACIAL STATEMENT:- As per many Acts in India, Audit of Financial
Statements is one of the most important compliances. A whole outlook of the
company and its management, even the valuation depends upon Audited Financial
Statements.
Clients of the chartered accountant’s firm are mostly the taxpayers who want to file the return
or avail any other service. Proprietors, Partnership firm, Service providers, manufacturing
firms, commission agents are the clients who avail the service of accounting and regular
filing of returns. These parties are the taxpayers and have to pay taxes under GST as per their
registration under GST. Regular GSTIN holders have to approximately file 3 returns per
month, so they have to avail the services of Chartered Accountants. Other taxpayers who
opted for composition scheme under GST have to file taxes quarterly and these are also done
by services of Chartered Accountants.
Industrial Environment Of The Company-
Swot Analysis
STRENGTH WEAKNESS
Opportunity Threats
Growth of this industry is very good as the number of Tax payers are increasing at the very
high pace as the GST has fill a lot of loopholes that’s why people have to file returns to take
Input tax credit. And even due to decrease in income tax rates mostly people want to convert
their black money in white that’s why they start filing income tax returns.
50000000.00
40000000.00
Number of Taxpayers
30000000.00
20000000.00
10000000.00
0.00
FY 2013- FY 2014- FY 2015- FY 2016- FY 2017-
14 15 16 17 18
AOP 84928.00 88437.00 106575.00 122467.00 155113.00
BOI 3672.00 3588.00 4205.00 4258.00 5323.00
COMPANY 636024.00 670902.00 692696.00 715200.00 799687.00
FIRM 881063.00 902954.00 983992.00 1060326.00 1208319.00
GOVERNMENT 10.00 26.00 41.00 68.00 156.00
HUF 873758.00 891805.00 940837.00 1007742.00 1112951.00
Local AUTHORITY 2267.00 2221.00 2465.00 2579.00 2955.00
INDIVIDUAL 30497686.00 32372535.00 36138842.00 41591644.00 50874369.00
AOP (TRUST) 160587.00 162857.00 179591.00 191971.00 223229.00
PART-2 INTRODUCTION TO PROJECT
In Another Words, An accountant is a person who is in charge of maintaining and analyzing financial
records. Most accountants are in charge of a variety of financial activities, whether for individual
customers or for bigger enterprises and organizations that hire them.
Supporting in tax compliance -This includes liaison with government authorities, representing
clients in courts, ensuring smooth business operations by taking over the complex tax compliance
part. For example, without the CA profession, changes like GST will be very hard to implement.
Financing - Creating opportunities by arranging for business finance. They are helpful in making
calculations and convincing banks about the credit worthiness of entrepreneurs. On a large scale too,
many CAs working with investment banks help to arrange some key business deals between
organizations.
Auditing - which includes the redundant but still necessary function of control procedures. This is to
prevent leakages from the economy and stand vigil to check on creation of illegal properties, black
money and frauds etc.
General business support – Things that Chartered Accountants do can be classified as general
support and consulting services. They can do this because of their knowledge about laws, taxes,
compliance, financial markets, investments, valuations, banking, regulations etc. It’s too many things,
but mostly for supporting roles only.
Filing of return: The main task with the Chartered Accountant is the filing of return. Chartered
Accountant is a professional who is authorized by Certificate of Chartered Accountants of India and is
a authorized person who can file the returns on the behalf of his clients. There are different types of
returns which are filed by the persons. Some returns filed are for the business and some are for the
individual. All the persons having the taxable income of more than Rs. 250000 are bound to file a
return under Income Tax Act.
After the introduction of GST all the persons registered have to file the return under GST. On
registration of person, he is appointed a 15 digits alphanumeric code called GSTIN in which are
contained the details of authorized person, his PAN number, place of operation of business,
goods/services traded, type of organization, scheme opted under GST. A person registered under the
composite scheme of GST has to file the returns quarterly i.e. every three months. A person registered
as a normal taxpayer has to file the returns monthly.
ABOUT ACCOUNTING:-
Evolution Of Accounting
Accounting is as old as money itself. It has evolved, as have medicine, law and most other
fields of human activity in response to the social and economic needs of society. People in all
civilizations have maintained various types of records of business activities. The oldest
known are clay tablet records of the payment of wages in babylonia around 600 b.c.
accounting was practiced in india twenty-four centuries ago as is clear from kautilya’s book
‘arthshastra’ which clearly indicates the existence and need of proper accounting and audit.
For the most part, early accounting dealt only with limited aspects of the financial operations
of private or governmental enterprises. Complete accounting system for an enterprise which
came to be called as “double entry system” was developed in italy in the 15th century. The
first known description of the system was published there in 1494 by a franciscan monk by
the name luca pacioli.
The expanded business operations initiated by the industrial revolution required increasingly
large amounts of money which in turn resulted in the development of the corporation form of
organizations. As corporations became larger, an increasing number of individuals and
institutions looked to accountants to provide economic information about these enterprises.
For e.g. Prospective investors and creditors sought information about a corporation’s
financial status. Government agencies required financial information for purposes of taxation
and regulation. Thus accounting began to expand its function of meeting the needs of 5
relatively few owners to a public role of meeting the needs of a variety of interested parties.
Definition Of Accounting
Before attempting to define accounting, it may be made clear that there is no unanimity
among accountants as to its precise definition. Anyhow let us examine three popular
definitions on the subject:
Accounting has been defined by the american accounting association committee as: “the
process of identifying, measuring and communicating economic information to permit
informed judgments and decisions by users of the information”. This may be considered
as a good definition because of its focus on accounting as an aid to decision making.
The american institute of certified and public accountants committee on terminology defined
accounting as:
“accounting is the art of recording, classifying and summarizing, in a significant
manner and in terms of money, transactions and events which are, part at least, of a
financial character and interpreting the results thereof ”. of all definitions available, this
is the most acceptable one because it encompasses all the functions which the modern
accounting system performs.
Another popular definition on accounting was given by american accounting principles board
in 1970, which defined it as:
“accounting is a service society. Its function is to provide quantitative information,
primarily financial in nature, about economic entities that is useful in making economic
decision, in making reasoned choices among alternative courses of action”.
Problem
Chartered Accountant firm has to maintain the record of all the clients and various
documents. In addition to the record of clients, the record of transactions and working of each
clients business is to be recorded separately. The transactions relating to clients business is
recorded in tally which helps them to file the tax returns efficiently. For recording the
transactions in software, transactions done by the clients should be known to the employee
who is engaged in recording of these transactions. So, for recording the transactions
effectively and well in time he needs to gather the details well before they are needed.
The problem arises
when the information is not
gathered on time. This may
be due to carelessness of the
employee concerned with
recording of transactions or
on part of client who has to
provide the information.
Same problem arises in Viva
& Associates. Some of the
clients of the firm are not
much aware about when the return is to be filled so they do not provide proper
details till that time and when asked for the details by the employee the
information is delayed by the clients. Due to the shortage of time the transactions
are recorded in a hurry and in this process there are chances that the transaction is
missed and no record is made of such transaction. When the transaction is missed
then it will lead to wrongly filing of return and in certain cases this leads to Tax
liability on client.
After the introduction of GST, the importance of recording the outward supplies,
purchases, credit vouchers, etc has increased. In this GSTIN of all the parties of the
client is to be recorded and in some cases GSTIN entered on the invoice is wrongly
put and when entered in tally, it shows the error and transaction is stopped.
Problems caused due to lack of timely gathering of information:-
(a) Important transactions of clients business are missed.
(b) Recording of transactions in computer software is done in a hurry so, the chances
of error increases.
(c) Returns are not submitted within due date.
(d) There is error in filing of return.
(e) In some returns, transactions are cross verified and in that case if a transaction is
missed then it will lead to error in filing of return.
(f) There is less time left for verification of transactions recorded with the invoices,
receipts and vouchers.
Another Problem is that clients of the chartered accountant meet him regularly for some
financial advice, filing of return, and for some other financial purpose. The interaction of the
two is must in order to fulfill the objective of the clients. In the firm I worked, Chartered
Accountant was not available in the timings mentioned by him and so the clients were not
able to fulfill their objective. This non availability may lead to loss of clients as they may
switch to another Chartered Accountant to fulfill their purpose.
Objective of the Study is to have overall idea of the working of different industries. During
this internship I worked with, ‘Viva & Associates’ Chartered Accountants firm and have
learnt many new skills. Before internship I had only theoretical knowledge about work in
organization. Now I have some practical knowledge and experience of functionality in an
organization. Now I have knowledge about the transactions of different businesses be it sole
proprietor, partnership, manufacturing concerns, service providers, etc.
This internship will help me to know the applicability of accounting in the business.
Following are the objectives that I have in my mind before working as an internee: -
a) To learn about the jobs performed by a Chartered Accountant.
b) To gain experience on legal aspects of accounting
c) To experience the life in the business world.
d) To expand knowledge on areas of accounting
e) To develop personality and communication skills.
f) To interact with clients to know how the market functions.
g) To apply the theoretical knowledge in actual organization.
h) To get experience about the accountability to boss.
i) To know how to present in front of boss.
j) To learn book keeping practices of different type of organizations
k) To learn about prevalent tax structure.
l) To plan for the future of oneself and learn how to adjust in an organization.
m) To analyze the business situation.
n) To compare practical aspects with theoretical aspects.
o) To promote my personal knowledge and professional preparation for future
Work Done in Internship So Far
The purpose of maintaining of this data is for the purpose of internal record. By this the value
can be checked which is entered at the time of filing of return and all the data is assessed at a
single place.
Applying GST
Any person carrying on some business, is selling goods/services and earning some income
needs to register under GST and obtain GSTIN. However, persons having taxable income
(from sale of goods/services) below 20 lakhs have no compulsion as to get itself registered
under GST. The National Development Council has set certain states as special category
states and in these states persons having taxable income (from sale of goods/services) above
10 lakhs need to get themselves registered under GST. Currently, Assam, Nagaland, Jammu
& Kashmir, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Uttarakhand, Tripura,
Himachal Pradesh, and Sikkim are considered special category states. The National
Development Council composed of the Prime Minister, Union Ministers, Chief Ministers and
members of the Planning Commission determines the list of special category states in India.
Also, the decision to accorded special status to a State is based on factors like: hilly and
difficult terrain; low population density and or sizeable share of tribal population; strategic
location along borders with neighboring countries; economic and infrastructure backwardness
and non-viable nature of state finances.
Person who does not mandatorily has to get itself registered under GST
(a) A person who sells goods/services that is not liable to tax under GST or such
goods/services are fully exempted from tax.
(b) A person earning income from agricultural produce as long as the supply is to the
extent that it avails exemption from obtaining GST registration. Here, agriculturist is a
person who undertakes cultivation of land by own labour or by the labour of family or
by servants on wages payable on cash or kind.
A person who gets himself registered under GST has the option to avail the composition
scheme or go for Regular GSTIN. A person can avail composition scheme if its annual
turnover is less than 75 lakhs. Composition dealer has to file the quarterly return instead of
three monthly return as in case of normal GSTIN holders. They need not issue taxable
invoice which means that they cannot collect tax from the customers. These holders do not
even avail input tax credit. They have to pay tax at a fix rate of 1% on annual sales.
Manufacturers have to pay @ 2%. Suppliers of food or drink other than alcohol for human
consumption have to pay tax at a fix rate of 5%.
1. Service providers
2. Inter-state sellers
3. E-commerce sellers
GSTR 1: Return Filing, Format, Eligibility & Rules. GSTR-1 is a monthly return that
summarizes all sales (outward supplies) of a taxpayer. GSTR 1 is to be filed by the taxpayers
holding regular GSTIN. It prescribes the details to be mentioned by the taxpayer for the sales
made by him in the prescribed period. The details of outward supply made by the taxpayer
are to be provided bill wise. This return is to be filed monthly and the sales of the month are
to be provided. Here, the purpose of declaring outward supply is to compute the tax liability
of the supplier. Here the taxpayer should be very careful while declaring the outward supply
detail as this will be auto populated in GSTR 2. It should also be ensured that the information
declared by the registered person tallies with the financial ledger. Sales account in the
financial ledger shall be bifurcated into various heads to ensure that the amount declared in
each of the table tallies with the balance shown in the financial ledger code. Thus, mapping of
tables with financial ledger code shall be done to ensure completeness and correctness of the
information declared in GSTR-1.
The information so provided of the outward supply by the supplier will be provided to the
registered taxpayer after due date of GSTR 1 on the Part A of GSTR 2A. In GSTR 2A the
information provided by the supplier is tallied bill wise. In GSTR 2A, details regarding the
purchase is to be entered and this is tallied by the information provided by the supplier in
GSTR 1.
Particulars to be filed under GSTR 1 are:
(a) GSTIN of the taxpayer- It is the 15 digits alphanumeric code which is provided to a
person registered under GST.
(b) Name of the registered person- Name of registered person will be auto filled when
GSTIN is provided.
(c) Aggregate turnover in the preceding financial year.
(d) Taxable sales to a registered person (B2B) other than zero rated sales and deemed
exports- Amount of sales made to a registered person is to be recorded.
(e) Taxable sales to a unregistered person (B2C) where invoice price is more than 2.5
lakhs - Amount of sales to a consumer of goods or the person who is not registered
under GST.
(f) Zero rated sales and deemed exports- This is the value exports, sales to sez and
deemed exports.
(g) Taxable sales to an unregistered party with outward supplies of less than 2.5 lakhs.
(h) Nil rated, exempt and non-GST outward sales- this will include the sale of goods
which are nil rated or are exempted from tax under GST. This will also include nil
rated interstate and intrastate transactions.
(i) Amendments to details of the invoice- Under this head all the transactions which are
amended in the current tax period. Credit note, debit notes, refund vouchers and
cancelled invoices are recorded under this head.
(j) Details of debit note and credit note issued to a unregistered person.
(k) Amendments of details of outward supply of earlier tax periods- It denotes the details
of Advances Received/Advance adjusted in the current tax period.
(l) HSN wise summary of outward supplies.
(m) Documents issued during the tax period- All the documents issued like debit note,
credit note, invoice, receipt vouchers, payment vouchers, refund vouchers.
Government has updated rules regarding filing of GSTR 1. Firstly, GSTR 1 was to be filled
monthly for all the taxpayers registered under GST and holding normal GSTIN but now there
is a option for the taxpayers with outward supplies less than 1.5 crores to file the GSTR 1
quarterly. In other words, it states that taxpayers with outward supplies of less than 1.5 crores
can file the return on quarter basis. Further the taxpayers with regular GSTIN and having
outward sales of less than 1.5 crores have the option to file quarterly and now the GSTR 1 of
such taxpayers will be filled for the quarter. Other taxpayers with outward supplies of more
than 1.5 crores have to file the return GSTR 1 of the period of 4 months and further.
Return once filed cannot be revised. Any mistake made in the return can be rectified in the
next periods (month/quarter) return. It means that if a mistake is made in September GSTR-1,
rectification for the same can be made in October’s GSTR-1. Late Fees for not filing GSTR-1
is Rs. 200 per day of delay (Rs. 100 as per CGST Act and Rs. 100 as per SGST Act. The late
fees will be charged from the date after the due date.
GSTR 2A: It is a purchase-related tax return that is automatically generated for each
business by the GST portal. GSTR-2A is a read-only document with a list of all of the
invoices from the various sellers during the month. My Mentor CA Arun Kumar asked me to
keep record of it by download a copy of it. He told me that they have to keep record of it to
file GSTR-3B as It helps in calculating Net Input Tax Credit
GSTR-3B is a simple summary return that all normal taxpayers must file monthly.
Taxpayers are allowed to take the input tax credit (ITC) based on the details by the taxpayer
in Form GSTR – 3B.
GSTR-3B is the simple return introduced by taxation department in which simple sales and
purchase amount is to be mentioned. This return does not ask for the full fledged information
as per the invoice. Here, simple total values of sales and purchase are to be provided. GSTR
3B is to be filled by 20th of the next month for which the return is to be filled.
Filing of GSTR 3B is mandatory for all the taxpayers holding regular GSTIN and is to be
filled monthly. In case, a taxpayer has no transactions during the month still it is a
compulsion for him to file a return. In this case a taxpayer has to file a nil return. GSTR-3 is a
monthly return with the summarized details of sales, purchases, sales during the month along
with the amount of GST liability. This return is auto-generated pulling information from
GSTR-1 and GSTR-2.
GSTR-3B is to be filed by all the taxpayers registered under GST.
However, the following registrants do not have to file GSTR-3B
(a) Input Service Distributors
(b) Composition Dealers
(c) Suppliers of online information and database access or retrieval services (OIDAR),
who have to pay tax themselves (as per Section 14 of the IGST Act)
(d) Non-resident taxable person
GSTR-3 : will show the amount of tax liability for the month and this has to be filled and
tax liability has to be paid. The liability to pay tax arises only if input tax credit is less than
the output tax. In other words, it states that the liability to pay tax arises only if value of sales
is more than that of purchases.
A registered taxpayer who does not file GSTR-3B will have to face heavy fines and penalty.
If GSTR-3 return is not filed then the GSTR-1 of the next month cannot be filed. Hence, late
filing of GST return will have a cascading effect leading to heavy fines and penalty. In case
the return is filed late then taxpayer will have to incur penalty of Rs. 100/day for CGST and
Rs. 100/day for SGST. To conclude a taxpayer has to pay a penalty of Rs. 200/day for late
filing of the return and the maximum fine which is to be paid is Rs. 5000. In addition to later
fee charges a taxpayer has to pay interest @ 18% per annum, on the amount of outstanding
taxes if any. There is no late fee charges for IGST.
GSTR-3B once filled cannot be revised. Any mistake incurred in filing of return can be
rectified while filing the GSTR-1 and GSTR-2. There is no provision to rectify the return
once it is filed.
GSTR 4 : GSTR 4 is the return which is to filled by the taxpayers who have opted for
composition scheme under GST. A person carrying on business and having yearly sales of
less than 75 lakhs or 75 lakh can opt for composition scheme and avail the facility of paying
tax at a fixed rate and file quarterly return. These taxpayers have to pay tax at the fixed rate
of 1% of gross sales. The tax is paid quarterly on the amount of sales without any benefit of
input tax credit. The taxpayer has to declare:-
(a) Total consolidated value of sales made during the year.
(b) Amount of tax paid on sales.
(c) Invoice level purchase from the parties with regular GST number, and this will be auto
drafted in form GSTR 4A from the invoice details submitted by the party holding regular
GST number in the filing of GSTR 1.
Due date of filling of GSTR 4 is date 18th of next month after the end of quarter. GSTR 4 was
filled for the second quarter of the financial year but was filled for the first time since the
introduction of GST. July- September was the first quarter for which GSTR 4 was to be
filled. So, according to the rule due date of filling of GSTR 4 stood to be October 18 but it
was extended till December 24. Reasons for extending the due date were many. There was
some internal problems with the site ‘www.gst.gov.in’. as the GST return was filled for the
first time so many of the professionals did not have much idea of how to file the proper return
of the taxable person. Moreover, some of the taxpayers opted for GST number late in july and
some even in august so the portal did not display the quarter for which the return is to be
filled.
Followings are some screenshots of GST software-
There are three types of digital signature certificates depending on the validation of identity
and type of use. They are:
Class I DSC – Individuals get it for validating the email identification of the users and in
situations where risk is minimal and here the signature is stored in software.
Class II DSC – Business organizations or individuals use this digital signature certificate
to validate the information given by the subscriber in the application against the information
available in a trusted consumer database and in other such situations where security risk is
moderate. In this case a hardware cryptographic device is used for storing the signature.
Class III DSC – This digital certificate is directly issued by the certifying authority and it
is required that the person applying for DSC must be present at the certifying authority’s
premises and prove his/her identity in front of the authority and the security risk involved in
this case is very high. In this case also a hardware cryptographic device is used for storing the
signature.
A licensed authority also called as Certification Authority (CA) that has been granted the
license to issue digital signature certificates by the Government of India can issue digital
signature certificate under the Information Technology Act 2000. You should pay a specified
fee and submit certain documents for obtaining DSC from CA. The e-KYC documents will
fetch your DSC on the same day from CA. The documents are:
For e-filing of the income tax returns by any individual, the Government of India has made it
mandatory to affix digital signatures to the income tax returns documents. For affixing the
digital signature one must have digital signature certificates issued by licensed certification
authority.
In addition, Ministry of Corporate Affairs has set the mandatory guidelines for the companies
directing them to file all reports, applications and forms using a digital signature only and this
again requires a digital signature certificate.
For GST also a company must verify its GST application by affixing a digital signature using
digital signature certificate in order to get registered for GST.
These days many Government procedures, filling different applications, amendments and
forms require digital signatures made by using digital signature certificates.
Saves Money & Time: As there is no need of physical presence you can digitally sign your
PDF files and other documents using DSC anywhere & anytime. You need not sign your
paper documents and then scan them to send them across through internet if you follow the
above given option. You can save the money which would otherwise be spent on printing and
scanning the document. You can also go green by saving paper.
Secured Data: The digitally signed documents are tamper proof as the digital signatures are
secured with a private key and public key and they cannot be edited after digitally signing the
document.
Authentic: Digitally signed documents are authentic and the receiver can be completely sure
about the sender’s identity and integrity. The receiver can easily execute the information in
the document without worrying about the document being forged.
The digital signature certificates in India issued by licensed certifying authority approved by
Ministry of Information & Technology are valid in India as per the ‘Information Technology
Act 2000’. The DSC’s come with an explicit starting date & explicit expiration date. Usually
the expiration time for standard digital signature certificates issued by CA will be from 1 year
to 2 years. The digital signature certificates are managed by Certificate Revocation List
(CRL) based on expiration date.
Chapter-4 Interpretation and Analysis
During the working in the Chartered Accountant firm, I earned the experience of practical
applicability of accounting and its combination with law. Through the study of books of
different organizations I learned about how different concepts are applicable in practical
world and how various transactions are made by different types of organizations.
After the introduction of GST, the work with Chartered Accountants has increased. Earlier, a
taxpayer had to file a single return at the end of the quarter but after GST some of the
taxpayers have to pay monthly 3 returns and some a single return at the end of quarter. The
workload on taxpayers has increased due to introduction of GST so, each taxpayer avails the
services of CA to manage his filing of returns.
While filing of returns under GST, I found that the transactions which are recorded are of
great importance. A single error while recording of entry on part of one party will lead to
wrong filing of return. The error occurs when the time period is less and there is no time to
re-verify the recorded transactions. For this purpose there is a great need to make available
the information well in advance. This is the main problem on which the firm should look
upon.
Now, all the taxation work is mostly done online and there are alterations on the portal on
regular portal. The person who has to file the return should know all the alterations which are
made by the taxation department so that no problem arises at the time of filing of returns.
Different returns to be filed need different information. While filing some of the returns
details have to be disclosed bill wise and is some the aggregate amount is to be filled so, the
detailed information is to be known.
Chapter-5 Summary, Conclusion and Suggestions
A project report, ‘functions performed in a chartered accountancy firm’ is the brief study of
the functions performed by a Chartered accountant and other functions performed in his firm
by other employees. There are various functions to be performed by a CA in the firm. He
deals with different clients who ask for financial advice, filing of returns, accounting,
preparation of financial books, audit, etc. All the functions performed by CA and their team
as per the legal requirements and has to follow all such rules.
In every firm there are some problems which affect the working in the organization. In Viva
& Associates there is a problem related to gathering of information, appointment to clients.
Timely gathering of information about taxpayer’s business and recording them in software
becomes the base of further working. All the returns to be filed need some information to be
filed and in some returns the file from tally can be exported to file the return. So, accounting
should be done well in time so that it can be verified and no error occurs at the time of filing
of return. Gathering of information not only includes the transactions performed but also the
complete information about the debtors and creditors of the client’s business. So, in order to
eliminate the errors information should be gathered well in time and accounting be done
accordingly.
Another problem that arises is to the clients. On visiting the firm in the regular timings, they
are not able to interact with the professional. This non-availability of professional can lead to
loss of clients as they may switch to other professional for financial assistance. This problem
should be well thought off and the CA should be available to the clients in regular timings of
business. Due to his non-availability, not only he suffers on clients but the employees also
don’t function efficiently. So, he should schedule his personal work in the odd periods.
Another thing he can do is to ask all his clients to visit him by taking the appointments so that
they need not wait to meet him.
In the end, I can conclude that by working in the organization I have gained a lot about the
functionality of industry. This internship has helped me gain practical knowledge in the field
of finance. By seeing the books of different organizations I came to know how the
transactions are recorded in the books by different types of organizations. This experience
gained through working in the industry will help gain confidence and improve the skills of
how to interact with the boss.
References
https://webplayer.in/finance/
www.icai.org
www.gst.gov.in
www.taxman.com
www.incometaxindia.gov.in
www.cleartax.in