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SUMMER INTERNSHIP PROJECT REPORT ON

INCOME TAX RETURN FILLING AT

CA Raj Garg and Associates Submitted in partial fulfillment of the requirements for the award of Bcom Hons degree

Submitted by Ankit kumar Bcom Hons Batch – (2017 – 20) Roll No.: 170243013 Under the guidance of Prof.Ankur Aggrawal

SCHOOL OF BUSINESS STUDIES SHARDA UNIVERSITY, GREATER NOIDA-201306

Executive summary . The internship report on implications of Goods and Service Tax (GST) on automobile industry of India. The objectives of the study was to find implications of Goods and Service Tax (GST) on automobile industry of India, whether it will act as a boon or bane for industry. The other subobjectives are as follows:-  To study how Auto loans will get impacted after GST implementation.  How GST will affect Indian Economy. Only secondary data was used to prepare this report. This report is divided into few chapters such as introduction to banking sector, , introduction to tax and elaboration of GST insights, impact of GST on automobile sector and Indian economy. The last chapter is about conclusion and recommendations which are drawn from analysis of whole study. The main findings of the study are as follows: Automobile industry is looking forward to introduction of GST. However, there are quite a few concerns in GST model, which need to be addressed. Restrictions and conditions on eligibility to tax credits on assets used for business is also a major area of concern, and the credit mechanism should be more liberal. Overall, GST will be boon for automobile industry. Some recommendation of the study are: Companies need to upgrade their enterprise resource planning (ERP) — a category of business management software — so as to accommodate the complexities of calculating GST. ERP helps companies manage and monitor everything 2 in the organization, including supply chain, finance and even human resource functions. SAP and Oracle are the big players in the Indian ERP space. Overall learning from internship duration: It has been one of the most important learning curves of my life, working with HDFC Bank, one of the leading banks in industry. I have gained insights regarding sales pitch, building relationship with customers. I got to know about the real market and how to make customers feel benefitted with their investments. This experience has helped me to grow my personality and taught me about not only the position but also industry goals and initiatives.

ACKNOWLEDGEMENT I am using this opportunity to express my gratitude to everyone who supported me throughout the course of this B.com hons Summer Internship Project. I am thankful for their aspiring guidance, invaluably constructive criticism and friendly advice during the project work. I am sincerely grateful to them for sharing their truthful and illuminating views on a number of issues related to the project. I express my warm thanks to Mr. Ankur Aggrawal for their support and guidance at SHARDA UNIVERSITY. I would also like to thank my guide Mr. Sumit Sang from Raj Garg and Associates and all the people who provided me with the facilities being required and conductive conditions for my B.com Summer Internship Project. Thank you

Ankit kumar

TABLE OF CONTENT SR.NO

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CERTIFICATE FROM COLLEGE(SUSBS) INTERNSHIP CERTIFICATE SUMMERTRAINING ORGANISATION EXECUTIVE SUMMARY

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PART- 1 1.1 ORGANISATION PROFILE About Raj Garg and Associates, G.S. Kohli & Co. is a professionally managed firm. The team consists of distinguished chartered accountants, corporate financial advisors and tax consultants. The firm represents a combination of specialized skills, which are geared to offers sound financial advice and personalized proactive services. Those associated with the firm have regular interaction with industry and other professionals which enables the firm to keep pace with contemporary developments and to meet the needs of its clients. G.S. Kohli Membership no. - 09713 Address: H - 739, Pocket H, Rajender Nagar Part 1, New Rajinder Nagar, New Delhi, Delhi 110001 A.K. Maheshwari Membership no. - 084689

Address: H - 739, Pocket H, Rajender Nagar Part 1, New Rajinder Nagar, New Delhi, Delhi 110001 Rajendar Kumar Gupta Membership no. - 089678 Address: H - 739, Pocket H, Rajender Nagar Part 1, New Rajinder Nagar, New Delhi, Delhi 110001 Sumit Sang Membership no. - 522521 Address: H - 739, Pocket H, Rajender Nagar Part 1, New Rajinder Nagar, New Delhi, Delhi 110001

1.2 INTRODUCTION WORK OF ORGANISATION Introduction of The G.S. Kohli & Co., Chartered Accountants work in a wide range of business sectors and in a broad spectrum of roles, from Chief Executives to Financial Controllers. Below are a few examples of the type of positions that Chartered Accountants occupy.  Tax Accountant  Management Accountants  Financial Accountants  Budget Analysts  Auditor

1.3 VISION & MISSION Vision Statement We will become the Tax advisor of choice through the creation of an environment where we want to give of our best.

Mission Statement Prime objective the provision of an integrated range of client focused services that will exceed our client's expectations and assist them to improve the and reduce and maintain Tax Liability. We are committed to creating a client focused culture and supporting our staff to achieve the prime objective. Our professional and local communities are an integral part of our ability to deliver on this mission.

1.4 SERVICES 1.4.1 Taxation Enhancing a stakeholder value is a fundamental concept, which drives every management effort in the modern business environment. Progressive and bottom – line focused managements have realized that taxes should be viewed as a dynamic item of cost, rather than a passive charge on the profits. Indeed, an effective tax – cost management provides a distinct competitive advantage, which requires the application of appropriate tax strategies, proactively identified and meticulously implemented. In the modern-day world all businesses are engaged in multinational transactions and operations, they are continually challenged to manage the impact of multiple and ever-changing tax -jurisprudence. In order to meet requirements of the business, we provide following services: 1. Tax Advisory 2. Goods and Services Tax 3. Representation and litigation support

1.4.2 Assurance Our assurance services include Statutory audit, Tax audit and Special audits. We carry out audit of financial statements prepared in accordance with various GAAP's (IGAAP/US GAAP / IFRS / other international GAAP) under applicable auditing standards. Our audit methodology is compliant withinternational auditing standards and provide our client with highest level of assurance on their financial statements.With the wider access to Raj Garg & Associates Technical teams and experienced professionals, we bring the benefits of Global standards and practices to

our clients.

1.4.3 Advisory Service Managing Risk to enhance performance to truly manage risk, it is vital to enable the right frameworks. We help enhance your business performance by building strong risk management frameworks into the very core of your business processes.

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1.5 SWOT ANALYSIS 1.5.1 Strengths of CA, Inc. – Internal Strategic Factors 

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As one of the leading firms in its industry, CA, Inc. has numerous strengths that enable it to thrive in the market place. These strengths not only help it to protect the market share in existing markets but also help in penetrating new markets.some of the strengths of CA, Inc. are – Strong Brand Portfolio – Over the years CA, Inc. has invested in building a strong brand portfolio. The SWOT analysis of CA, Inc. just underlines this fact. This brand portfolio can be extremely useful if the organization wants to expand into new product categories. Highly skilled workforce through successful training and learning programs. CA, Inc. is investing huge resources in training and development of its employees resulting in a workforce that is not only highly skilled but also motivated to achieve more. Strong dealer community – It has built a culture among distributor & dealers where the dealers not only promote company’s products but also invest in training the sales team to explain to the customer how he/she can extract the maximum benefits out of the products. Strong distribution network – Over the years CA, Inc. has built a reliable distribution network that can reach majority of its potential market. Superb Performance in New Markets – CA, Inc. has built expertise at entering new markets and making success of them. The expansion has helped the organization to build new revenue stream and diversify the economic cycle risk in the markets it operates in. Reliable suppliers – It has a strong base of reliable supplier of raw material thus enabling the company to overcome any supply chain bottlenecks. Highly successful at Go To Market strategies for its products. Strong Free Cash Flow – CA, Inc. has strong free cash flows that provide resources in the hand of the company to expand into new projects.

1.5.2 Weakness of CA, Inc. – Internal Strategic Factors Weakness are the areas where CA, Inc. can improve upon. Strategy is about making choices and

weakness are the areas where an organization can improve using SWOT analysis and build on its competitive advantage and strategic positioning. 

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Not very good at product demand forecasting leading to higher rate of missed opportunities compare to its competitors. One of the reason why the days inventory is high compare to its competitors is that CA, Inc. is not very good at demand forecasting thus end up keeping higher inventory both in-house and in channel. High attrition rate in work force – compare to other organizations in the industry CA, Inc. has a higher attrition rate and have to spend a lot more compare to its competitors on training and development of its employees. Limited success outside core business – Even though CA, Inc. is one of the leading organizations in its industry it has faced challenges in moving to other product segments with its present culture. Need more investment in new technologies. Given the scale of expansion and different geographies the company is planning to expand into, CA, Inc. needs to put more money in technology to integrate the processes across the board. Right now the investment in technologies is not at par with the vision of the company. The profitability ratio and Net Contribution % of CA, Inc. are below the industry average. The marketing of the products left a lot to be desired. Even though the product is a success in terms of sale but its positioning and unique selling proposition is not clearly defined which can lead to the attacks in this segment from the competitors. The company has not being able to tackle the challenges present by the new entrants in the segment and has lost small market share in the niche categories. CA, Inc. has to build internal feedback mechanism directly from sales team on ground to counter these challenges.

1.5.3 Opportunities for CA, Inc. – External Strategic Factors 

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New customers from online channel – Over the past few years the company has invested vast sum of money into the online platform. This investment has opened new sales channel for CA, Inc.. In the next few years the company can leverage this opportunity by knowing its customer better and serving their needs using big data analytics. Government green drive also opens an opportunity for procurement of CA, Inc. products by the state as well as federal government contractors. Economic uptick and increase in customer spending, after years of recession and slow growth rate in the industry, is an opportunity for CA, Inc. to capture new customers and increase its market share. Organization’s core competencies can be a success in similar other products field. A comparative example could be - GE healthcare research helped it in developing better Oil drilling machines. Decreasing cost of transportation because of lower shipping prices can also bring down the cost of CA, Inc.’s products thus providing an opportunity to the company - either to boost its profitability or pass on the benefits to the customers to gain market share. New trends in the consumer behavior can open up new market for the CA, Inc. . It provides a great opportunity for the organization to build new revenue streams and diversify into new product categories too.

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The new technology provides an opportunity to CA, Inc. to practices differentiated pricing strategy in the new market. It will enable the firm to maintain its loyal customers with great service and lure new customers through other value oriented propositions. Opening up of new markets because of government agreement – the adoption of new technology standard and government free trade agreement has provided CA, Inc. an opportunity to enter a new emerging market.

1.5.4 Threats CA, Inc. Facing - External Strategic Factors        

Increasing trend toward isolationism in the American economy can lead to similar reaction from other government thus negatively impacting the international sales. New environment regulations under Paris agreement (2016) could be a threat to certain existing product categories . Rising raw material can pose a threat to the CA, Inc. profitability. Imitation of the counterfeit and low quality product is also a threat to CA, Inc.’s product especially in the emerging markets and low income markets. The company can face lawsuits in various markets given - different laws and continuous fluctuations regarding product standards in those markets. New technologies developed by the competitor or market disruptor could be a serious threat to the industry in medium to long term future. Shortage of skilled workforce in certain global market represents a threat to steady growth of profits for CA, Inc. in those markets. The demand of the highly profitable products is seasonal in nature and any unlikely event during the peak season may impact the profitability of the company in short to medium term.

1.5.5 Limitations of SWOT Analysis for CA, Inc. Although the SWOT analysis is widely used as a strategic planning tool, the analysis does have its share of limitations. 

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Certain capabilities or factors of an organization can be both a strength and weakness at the same time. This is one of the major limitations of SWOT analysis . For example changing environmental regulations can be both a threat to company it can also be an opportunity in a sense that it will enable the company to be on a level playing field or at advantage to competitors if it able to develop the products faster than the competitors. SWOT does not show how to achieve a competitive advantage, so it must not be an end in itself. The matrix is only a starting point for a discussion on how proposed strategies could be implemented. It provided an evaluation window but not an implementation plan based on strategic competitiveness of CA, Inc. SWOT is a static assessment - analysis of status quo with few prospective changes. As circumstances, capabilities, threats, and strategies change, the dynamics of a competitive environment may not be revealed in a single matrix. SWOT analysis may lead the firm to overemphasize a single internal or external factor in formulating strategies. There are interrelationships among the key internal and external factors that SWOT does not reveal that may be important in devising strategies.

1.6 PROBLEMS ENCOUNTERED BY A CA FIRM       

Rigorous course curriculum -( Little time to develop other skills) Difficulty in Market penetration (For new entrants in Practice) High level of competition Developing a client base is not so easy Opportunities are largely confined to Finance (Few CA CEOs as compared to CFOs) Tight deadlines and busy seasons Good number of IIT Grads get hired for 2 Million as a base package which is not quite the case for newly qualified CAs

PART-2 RESEARCH PROBLEM 2.1 What is GST? The Goods and Services Tax has revolutionized the Indian taxation system. The GST Act was passed in the Lok Sabha on 29th March, 2017, and came into effect from 1st July, 2017. In this article, we take a closer look at what makes GST the ‘Good and Simple Tax’ everyone has been waiting for 1. What is GST? Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that will be levied on every value addition. In simple words, GST is an indirect tax levied on the supply of goods and services. GST Law has replaced many indirect tax laws that previously existed in India. So, before Goods and Service Tax, the pattern of tax levy was as follows: :

Under the GST regime, tax will be levied at every point of sale. Multi-stage- There are multiple change-of-hands an item goes through along its supply chain: from manufacture to final sale to consumer. Let us consider the following case:  Purchase of raw materials  Production or manufacture  Warehousing of finished goods  Sale of the product to the retailer  Sale to the end consumer

Goods and Services Tax will be levied on each of these stages, which makes it a multi-stage tax. Value Addition- The manufacturer who makes shirts buys yarn. The value of yarn gets increased when the yarn is woven into a shirt. The manufacturer then sells the shirt to the warehousing agent who attaches labels and tags to each shirt. That is another addition of value after which the warehouse sells it to the retailer. The retailer packages each shirt separately and invests in the marketing of the shirt thus increasing its value. GST will be levied on these value additions i.e. the monetary worth added at each stage to achieve the final sale to the end customer. Destination-Based Consider goods manufactured in Rajasthan and are sold to the final consumer in

RESEARCH METHODOLOGY

Objective of Study  To study taxation provisions of The Income Tax Act, 1961 as amended by Finance Act, 20118.  To explore and simplify the tax filling procedure from a layman’s perspective.  To present the tax filling avenues under prevailing statures. Need for Study In last some years of my career and education, I have seen my colleagues and faculties grappling with the taxation issue and complaining against the tax deducted by their employers from monthly remuneration. Not equipped with proper knowledge of taxation and tax filling avenues available to them.

Chapter 5

DATA ANALYSIS AND INTERPRETATION

INCOME TAX SLAB RATES A.Y.2018-19 For Individuals TAXABLE INCOME

TAX RATES

Upto Rs.250,000

Nil

Rs. 250,000-Rs. 500,000

5%

Rs. 500,000 - Rs.1,000,000

20%

Above Rs.1,000,000 Surcharge

30%

10% of the income tax where the taxable income is more than 50 lakhs. 20% of the income tax where the taxable income is more than 1 crore. Cess 3% of education cess

For Senior Citizens TAXABLE INCOME

TAX RATES

Upto Rs.300,000

Nil

Rs.300,000-Rs. 500,000

5%

Rs. 500,000 - Rs.1,000,000

20%

Above Rs.1,000,000

30%

Surcharge

10% of the income tax where the taxable income is more than 50 lakhs. 20% of the income tax where the taxable income is more than 1 crore. Cess 3% of education cess

For Super Senior Citizens TAXABLE INC...