INTERNSHIP REPORT

ON

ERNST & YOUNG, LLP, INDIA

Internship report submitted to G R D Institute of Management,

Affiliated to Bharathiar University, Coimbatore – 641 046

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

SHANTHINI.K

18MBA048

GRD INSTITUTE OF MANAGEMENT

Dr. G. R. DAMODARAN COLLEGE OF SCIENCE

Autonomous and affiliated to the Bharathiar University

Re-Accredited with ‘A’ Grade level by CRISIL

Civil Aerodrome Post, Avinashi Road

Coimbatore – 641014

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 CERTIFICATE

This is to certify that the report is based on the organization study conducted at ERNST & YOUNG, LLP,
INDIA, submitted to GRD institute of management, affiliated to Bharathiar University, is in partial fulfilment
of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION is a record
of original work done by SHANTHINI.K, During the period from 3.06.2019 to 14.06.06.2019 and the report
has not formed the basis for the award of any degree, diploma or other titles to any candidate in the University
or any other institution of higher learning.

Signature of the Faculty guide Director

Signature of the Examiner

DECLARATION

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 I SHANTHINI.K (18MBA048) hereby declare that the report on Internship done at ERNST &
YOUNG , LLP , BANAGLORE submitted to G R D Institute of Management, affiliated to Bharathiar
University, Coimbatore – 641 046 in partial fulfilment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION is a record of original work done by me during the period
from 13.05.2019 to 22.06.2019 and that the report has formed the basis for the award of any degree, diploma, or
other titles to any candidates in this University or any other Institution of higher learning.

Signature of the candidate

Date:

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 ACKNOWLEDGEMENT

“It’s not possible to prepare an internship report without the assistance and encouragement of other
people. This one is certainly no exception”.

On the very outset of this report, I would like to extend my sincere and heartfelt obligations towards all
the personages who have helped me in this Endeavour. Without their active guidance, help, cooperation and
encouragement, I would not have headway in the internship work.

I would like to thank my Director Dr K. K. Ramachandran M.Com, M.BA, MFT, M.Phil. PGDFT,
PHD, Director, GRD Institute of Management, for providing me his enormous encouragement and giving me
and opportunity to undertake this internship work.

I feel great pleasure to thank DR.S.BRINDHA, MBA, and M.Phil. , PGDCA, PhD, Associate professor
and Head of the Department for the most needed moral support for the completion of internship work.

I record my indebtedness to my Faculty Guide, Dr.A.KAVITHA for giving me a valuable learning

experience by means of internship training.
I want to express my sincere thanks to Mr.Shivaprakash Arali CA, Senior Tax Manager, Ernst &
Young, LLP, Bangalore for guiding me throughout this internship and for giving me a deep dive into the
organisation and its practices and for permitting me to do my internship at Ernst & Young, LLP,
BANGALORE, India.

I am even Thankful to my parents for their moral support and timely help in completion of the
internship.
Above all, I thank God almighty for enabling me by blessings to complete this internship in a successful
manner.

SHANTHINI.K
(18MBA048)

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 TABLE OF CONTENT

CHAPTER TITLE PAGE NO

1 INTRODUCTION
1.1 Introduction as a management intern 6
1.2Industry overview 6-10
1.3 Company profile 10 -11
1.4 Vision 11-12
1.5Mission 13
1.6 Values 13
1.7 Employee Alignment 13
1.8 0rganisation structure 14-15
2 FUNCTIONS OF VARIOUS
DEPARTMENTS
2.1 Professional services rendered 16-20
2.2 Client Profile 20-21
2.3 Transaction Advisory Services 22
2.4 Advisory 23
2.5 Tax 24-25
2.6 Assurance 25-26
2.7 Core Business Services 26-27
2.8 Banking &Capital Markets 27-28
2.9 Insurance 28-29
2.10 Wealth & Asset Management 29-30
3 SWOT ANALYSIS
3.1 SWOT 31-32
3.2 Strengths 32
3.3 33
3.4 Threats

4 OBSERVATION 27
CONCLUSION 29

CHAPTER – 1
INTRODUCTION

1.1 INTRODUCTION AS A MANAGEMENT INTERN

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 “A Good Intern Is Supposed To Be Like A Good Hairpiece: Effective But
Unobtrusive” …..

-MARK
GREEN

The Internship is an integral platform for anyone to gain experience in an actual

workplace. Internship is a good opportunity for students to gain experience, to learn and also
to get prepared for the future. Men learn through experience, and real life is full of
experiences. We will encounter many difficulties and obstacles, and with experiences we are
expected to be able to encourage and complete the cleansing process. Experience in my eyes
is a very valuable thing in life because we need to be bold in taking up risk in real work place
scenario and also in our life. It is not something we need to create we need to undergo
through it. By doing internship in an actual workplace, it helps me to know and discover
myself from different angle. It also helps me to control and develop my attitude and behavior
in dealing with different kinds of people and situation.

This report is on my Internship as a Management student at Ernst & Young LLP, India,
and Langford Road, Bangalore. During my internship tenure I gained a practical exposure in
the fields of Accounting, Taxation, Marketing, Human Resources and Auditing.

1.2 INDUSTRY OVERVIEW – INTRODUCTION TO PROFESSIONAL

SERVICES

Ongoing specialization has been a decisive factor for the current state of our society. The
effect of specialization is such a broad concept that it touches upon almost everything in our
daily life. And our natural urge for specialization is also one of the main reasons why
professional services exist. Society and businesses cannot know everything and therefore
need specialists with practical experience to help and guide us.

Historically, technology developments changed the course of our specialization in important

ways. Now everything points to the fact that technology is to drastically change the way we
actually use professional services. Some even think that technology will eventually replace
these service providers because technology enables more efficient ways of knowledge
sharing, which is the core of professional services.

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Professional services are a major part of the overall economy, especially in the Western
world, whereby it is a fast growing sector in the rest of the world. So it is likely that any
change will have a considerable impact on our economies, let alone what a drastic change in
the professional services industry will mean.

At the level of the professional services industry, in general, there will be an increasing
skill shortage and it will be more difficult to find the right person for the job. It is also
expected that medium sized firms are likely to face the biggest challenges, especially at the
level of compliance related services. Some expect that mainly the bottom part of the
professional services pyramid will be impacted.  Technology will replace much of the hard
work of discovery, analysis, and comparison of information which is mainly done at the low
end. Furthermore, low end services can be replaced by self-service platforms or will become
commoditized services, especially when technology enables direct tapping into the flows of
client data as needed for instance for accounting and audits.

Accounting firms and professionals will face new challenges caused by new technology,
new platforms, new services, and changing customer expectations. Some services may be
automated, commoditized or will be done in-house by the client itself due to new
technological ways for clients to make sense of their own financial data, which data in the
end is not much more than a registration of its business transactions.

While the legal profession went through some changes in recent decades, major changes are
expected across the legal industry over the next ten years. The transformation of the legal
industry will likely be radical due to rapid technological developments, shifts in global
workforce demographics, changing client demands and the need to offer clients more value
for money. Within four years a tipping point is expected for individual firms which will
impact the competitive landscape and the role of talent.

For the consulting profession, the same external factors as for accounting and legal will
have an effect on the shape and form of the consulting industry. However, part of the
consulting industry may also benefit from this disruption age.  As a result of disruption,
clients are rethinking their own purpose and business models. Therefore, there will be an
increased demand for technology based strategy consulting and this will likely go hand-in-
hand with new parties entering into strategy consulting.

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 ACCOUNTANT

An accountant is a practitioner of accountancy, which is the measurement, disclosure or

provision of assurance about financial information that helps managers, investors, tax
authorities and others make decisions about allocating resource(s).

Accountants who have demonstrated competency through their professional associations'

certification exams are certified to use titles such as Chartered Accountant, Chartered
Certified Accountant or Certified Public Accountant. Such professionals are granted certain
responsibilities by statute, such as the ability to certify an organization's financial statements,
and may be held liable for professional misconduct. Non-qualified accountants may be
employed by a qualified accountant, or may work independently without statutory privileges
and obligations.

Cahan & Sun (2015)[1] used archival study to find out that accountants’ personal
characteristics may exert a very significant impact during the audit process and further
influence audit fees and audit quality.

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The Big Four auditors are the largest employers of accountants worldwide. However, most
accountants are employed in commerce, industry, and the public sector.[2]

MANAGEMENT CONSULTING

It is the practice of helping organizations to improve their performance. Organizations may

draw upon the services of management consultants for a number of reasons, including
gaining external (and presumably objective) advice and access to the consultants' specialized
expertise.

As a result of their exposure to, and relationships with numerous organizations, consulting
firms are typically aware of industry "best practices." However, the specific nature of
situations under consideration may limit the ability to transfer such practices from one
organization to another.

Consultancies may also provide organizational change management assistance, development

of coaching skills, process analysis, technology implementation, strategy development, or
operational improvement services. Management consultants often bring their own proprietary
methodologies or frameworks to guide the identification of problems, and to serve as the
basis for recommendations for more effective or efficient ways of performing work tasks.

BIG FOUR ACCOUNTING FIRMS

The Big Four (KPMG, Ernst & Young (EY), Deloitte and PricewaterhouseCoopers (PwC))
are the four biggest professional services networks in the world, offering audit, assurance
services, taxation, management consulting, advisory, actuarial, corporate finance and legal
services. They handle the vast majority of audits for public companies as well as many
private companies.

Until the late 20th century, the market was dominated by eight networks (known as the Big 8)
but this gradually reduced due to mergers and the 2002 collapse of Arthur Andersen, leaving
four networks dominating the market in the early 21st century. In the UK in 2011, it was
reported that the Big Four audit 99% of the companies in the FTSE 100, and 96% of the
companies in the FTSE 250 Index, an index of the leading mid-cap listing companies.[1]Such
industry concentration has caused concern and calls for the Competition and Markets

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Authority (CMA) to consider breaking up the Big Four. In October 2018, the CMA
announced it had launched a detailed study of the Big Four's dominance of the audit sector

1.3 COMPANY PROFILE

ERNST AND YOUNG INDIA PRIVATE LIMITED is a Private Company limited by

Shares. It is registered with Registrar of Companies, Delhi on Jul 24, 2002.

Current Status of Ernst And Young India Private Limited is Active.

It is a Non-government company with an Authorized Capital of ₹ 2, 50, 00,000 (Two Crore

and Fifty Lakh Indian Rupees) and Paid up Capital of ₹ 1, 96, 00,000 (One Crore And Ninety
six Lakh Indian Rupees).

There are 3 Directors associated with Ernst And Young India Private Limited.

They are: Hiresh Wadhwani, Pankaj Dhandharia and Amit Khandelwal.

 NAME OF THE COMPANY: Ernst & Young LLP India.

 FOUNDER: Rajiv Memani.

 Type of Company: Limited Liability Partnership.

 Industry: Professional Services.

 Founded On: 1989; 30 years ago (through the merger of Ernst and Whiney and
Arthur&Young).

 Headquarters: London, United Kingdom.

 Areas Served: Worldwide.

 Number of Employees: 2, 70,000.

 Owner: Ernst Young LLP.

 Revenue: $36.4billion.

 Services: Assurance, Tax Advisory, Consulting, Financial Advisory, Legal.

 Division: Assurance, Advisory, Transaction Advisory Services, Tax, Legal.

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  Website: www.ey.com/en-gl.

TAGLINE: “Building A Better Working World”.

1.4 VISION

Today’s workplace, as well as our profession, is profoundly different thanks to fundamental

changes driven by globalization and technology. Increased globalization means there are new
markets for goods and services and pressure on emerging market companies to compete on
innovation as well as price. It also means major shifts in consumer markets, tax policy and
workforce diversity. Technology is connecting people, spreading knowledge, saving time and
freeing up resources.

EY is responding to these changes with a plan. We call this plan Vision 2020, and its
objective is to make EY the leading global professional services organization by 2020.

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Our purpose: Building a Better Working World

As we created Vision 2020, it became clear that a sense of purpose runs strongly through our
organization. When we looked at the work we do for clients and what motivates all of us each
day, we could see that everything we do contributes to building a better working world.
Every audit, every tax return, every valuation and every interaction helps our clients fulfill
their purposes and contribute to building a better working world.

Our ambition: By 2020 we will be a US$50 billion distinctive professional services

organization

Our ambition is to be distinctive; to be recognized for having the best brand; to be the most-
favoured employer on university campuses, to have the number one or number two market
share in our chosen services and geographic markets; to enjoy market-leading growth with
competitive earnings; and to have the best relationships with all our stakeholders. As a result,
we will achieve a scale to our business in keeping with our bold ambition.

We want to be known for having the highest-performing teams that deliver exceptional client
service worldwide. Four years into Vision 2020 we are very much on track to achieve our
goals both on a global scale and locally here in Ireland.

1.5 MISSION

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At EY, our purpose is Building a better working world. The insights and quality services
we provide help build trust and confidence in the capital markets and in economies the world
over. We develop outstanding leaders who team to deliver on our promises to all of our
stakeholders.

1.6 Ernst & Young (EY) Values

 Integrity
 Respect
 Teaming
 Energy
 Enthusiasm
 Courage
 Relationships
 Doing the right thing

1.7 Ernst & Young (EY) Employee Alignment

Ernst & Young (EY)'s mission, vision & values motivate 67% of Ernst & Young (EY)
employees. Besides getting paid, the “company mission” is the most important thing about
their work for 5% of employees at Ernst & Young (EY). 5% of employees say that the main
reason they stay at Ernst & Young (EY) is because of the Ernst & Young (EY) company
mission. Comparably data clearly shows that a focused mission statement and cohesive core
company values are vital to maintaining employee alignment.

1.8 ORGANISATION STRUCTURE

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Hierarchy within EY India is same in all departments and in all cross functional service lines.
However, the designations name may vary within departments. Like a consultant in advisory
practice is called as an associate in assurance practice.

Band 6 - Analyst/Interns (CA article trainee/fresh graduates from college)

Band 5- Associate Consultant

Band 4 - Consultant, Senior Consultant

Band 3 - Manager, Senior Manager

Band 2 - Associate Director

Band 1 - Partner

EY follows the July - June as its financial year. Promotions take place in August.

It takes around 3 years to become a Associate. Consultant from an analyst. Then a year to get
promoted to a consultant. Then 2 years further across all levels.

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CHAIRMAN: Rajiv Memani.

EY India at present has over 3500 partners, more than 37,000peoople in 32 offices across 17
cities including personnel from other member firms of EY global in India.

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 CHAPTER – 2

FUNCTIONS OF VARIOUS DEPARTMENTS

2.1 PROFESSIONAL SERVICES RENDERED

a) NON-RESIDENT TAXATION AND FEMA

We provide advisory and compliance services which cover the Foreign Exchange Law and
Tax nation Law applicable to Non-Residents in the following areas.

 Tax Advisory Services and filing of e-Tax returns

 Setting up a Branch office/ Liaison office/ Project office in India
 Banking and Remittances
 Investment advisory support

Besides above, we also offer a wide gamut of services to our esteemed clients including
Accounting, Taxation, Company Law Matters, Audit & Assurance, Statutory Compliance,
New Venture Consulting and Project Financing services.

b) ACCOUNTING SERVICES

With our proven domain expertise, we offer accounting services which are professionally
executed by our qualified Chartered Accountants. These services are available for both
national and international clients. We ensure that our accounting services are rendered in a
cost-efficient manner with reliable process approach. Our clients get fully assured of the
confidentiality of their particulars and rely on our professionals for all the assistance needed
in their accounting matters. Some of the features of our accounting services include:

 Preparation of financial statements.

 Bookkeeping.

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  Consultancy on maintenance of accounting systems and procedures.
 Consultancy on cost control and austerity measures.
 Provision of guidelines regarding compliance with accounting standards and GAP in
preparation of books of accounts.
 Information Technology Information Security GAAP.

c) TAXATION SERVICES

As Indian economy is transforming into a developed economy, we at E&Y by keeping

current on new tax laws and legislation, are in a position to identify key tax planning
opportunities that minimize both the current and future tax liabilities. We provide our
individual and business clients with the taxation expertise and knowledge that they desire
throughout the year. Our tax advisory services include:

 Individual taxation.
 Tax preparation & filing for partnerships, private and public limited companies.
 Filing of PAN & TAN applications.
 Filing E-TDS returns.
 Handling legal proceedings related to tax on behalf of clients.
 Tax planning & estimation.
 Direct Tax Consultancy

d) COMPANY LAW MATTERS

Our diligent team of professionals is highly efficient in handling various tasks involved in
Company Law Matters. We provide these services keeping in mind the concerned industry
requirement. Our professionals render these services in compliance with financial norms and
guidelines. We deliver personalized services to our clients to offer maximum satisfaction and
thus upholding our market credibility. Some of the features of our company law matters
services include:

 Preparation and filing of annual reports.

 Preparation and filing of various compliance forms with the Registrar of Companies.
 Filing of charge creation, modification and satisfaction.
 Filing of charge creation, modification and satisfaction.

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  Incorporation, Foreign Investment.
 Bankruptcy & Winding Up.
 Certified E-Intermediary for E-Filing.

e) AUDIT & ASSURANCE

Assisted by our experts, we are proficient in offering reliable auditing & assurance services.
These services are handled by our experienced team of chartered accountants and auditing
experts so as to ensure highly effective end results can be delivered to the customers. Our
audit and assurance services comprise Audit under Companies Act, Internal Audit Services
and Tax Audit Services etc. These services ensure efficient management of organizations and
thus improving the business. With services delivered as per the prevailing laws and norms,
the areas covered by us under these services include:

 Statutory Audit of Firms, Limited Companies.

 Internal Audit for all Assesses.
 Statutory, Concurrent and Revenue Audit FOR Private and Nationalized Banks.
 Tax Audit for Business.
 Management Audit of Corporates.

f) STATUTORY COMPLIANCE

At E&Y, we will guide you through the legal aspects of forming limited companies and
partnerships and also advise and assist with changes to a business structure. To ensure that
your company complies with all the statutory regulations, we will assist you in ensuring that
the necessary records are maintained and the appropriate and timely filings made. Amongst
the services we provide the most demanded are the following:

 With FEMA guidelines.

 With RBI norms.
 Maintaining control of corporate statutory compliance filing deadlines.
 Providing registered office facility.
 Hand-holding for the selection and formation of the apt business entity or trust.
 Handling minutes of directors and shareholders meetings.
 Handling corporate changes.
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  Handling statutory filing requirements.
 Maintaining statutory records.

g) NEW VENTURE CONSULTING

E&Y specializes in venture consulting services. We work as contract entrepreneurs providing

the experience and resources needed to launch new businesses quickly and successfully. At
K&J, we believe that the key to any successful venture is to ensure that it rigorously defines
and implements a robust business model. Our unique business model becomes an integral
part of your organization, helping to shape and grow it. We actively address shortcomings
that may include limited market insight, fundraising, business strategy and key account
traction. Being your strategic business partner, we assist your organization to maximize its
potential. Our venture consulting practice is designed to help our clients develop and
implement strategies for:

 Preparation of project reports based on stated guidelines.

 Consultancy on methods of finance and related liaison.
 Consultancy on structuring of finances for business ventures.

h) PROJECT FINANCING

At E&Y, we understand the complexities involved in understanding and meeting the

demands of an array of services that need to be completed for successful completion of a
project. For ensuring delivery of flawless and beneficial financial services, we have with us
service support of experienced project finance consultants. They hold expertise in
understanding the exact specifications as demanded by the customers and providing them to
the clients. In order to grow, every business whether small, medium or large requires
financial assistance. We provide following services in this area:

 Preparation of reports for long term and working capital finance based on stated
guidelines.
 Commercial secured and unsecured loans and loan syndications.
 Construction and term debt facilities.
 Public and private issuances of debt and equity securities.
 Structured receivables arrangements and asset-backed securities.

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  Leveraged buyouts and other acquisition financing.

2.2 THEIR CLIENT PROFILE INCLUDES

a) ASSOCIATIONS

 CII

 Indian Merchants Chamber

 ASSOCHAM

 NASSCOM

 FORTUNE 500

b) INDIAN STOCK MARKET LINKS

 CIO Magazine Online

 Corporate Governance

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  Institute of Chartered Accountants of India

 Ministry of Finance

 Ministry of External Affairs

 Central Board of Direct Taxes

 Reserve Bank of India

 Securities and Exchange Board of India (SEBI)

c) INFORMATION LINKS

 Bombay Stock Exchange

 National Securities Depository Ltd

 National Stock Exchange

d) GLOBAL INFORMATION LINKS

 Foreign Exchange Rates

 International Chamber of Commerce

 International Fiscal Association(IFA)

 The Electronic Accountant

 The Wall Street Journal

e) PROFESSIONAL LINKS

 ISACA

 The Institute of Internal Auditors

 The American Institute of Certified Public Accountants

U.S. Securities and Exchange Commission

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2.3 TRANSACTIONARY ADVISORY SERVICES

 Corporate Finance Strategy

CFS is consistent with our global big bets for TAS, in particular, Transaction Strategy and
Operations (TSO). It helps us to support our clients and build stronger relationships by
bringing us into their conversations and the transaction life cycle earlier

 Mergers and Acquisitions

We provide M&D advice to institutions engaging in mid-market transactions in the financial

services sector. We help our clients assess the strategic fit of a business by evaluating
potential synergies, project managing the transaction steps, assisting in negotiations and
financial models, and measuring transaction implications.

 Operational Transaction Services

We focus on helping financial services clients to increase value from their transactions
through all stages of the deal cycle, whether realizing synergies, facilitating a smooth
integration, maximizing deal returns or reducing operational risk.

 Transaction Support

We help client buyers and sellers make informed decisions and execute transactions while
focusing on their capital agenda. Our focus is on helping our clients improve their outcomes.

 Valuation & Business Modeling

We help our clients build effective business models to evaluate a new transaction, a new
market opportunity or for other strategic purposes. Our team can help clients develop robust
financial models to support key decisions and improve strategic outcomes.

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2.4 ADVISORY

 Actuarial Services

You will assist our clients with their operational and strategic challenges, product
development and risk functions. Your work will span the implementation of regulatory
changes such as Solvency II, finance and risk transformation, assurance and attest roles, and
restructuring transactions.

 Financial Services Risk

You will help our clients respond to new regulation and increased expectations of risk and
internal audit functions. You will work through regulatory issues including Basel III,
recovery and resolution planning, and conduct risk

 IT Risk and Assurance (ITRA)

ITRA is growing fast. For you, that means great opportunities in IT controls, assurance and
risk, as we continue to expand into areas such as cyber security and data risk

 Performance Improvement

You will help to deliver sustainable improvement by optimizing you clients' performance and
profitability. As we work to become leaders in delivering large-scale transformation, your
broad sector experience and deep subject matter knowledge will help our clients perform
operational change on a global scale.

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2.5 TAXATION

We create strategies that help clients to manage and meet tax obligations whilst enhancing
their financial performance. Apply your technical knowledge and experience to help
individual clients meet their tax obligations and enhance financial performance broadening
your knowledge and experience of tax. The Tax team here is international and works for
diverse, high-profile clients..

 Business Tax Services

Working in this team, you will support our clients in meeting their business tax compliance
and advisory needs, building sustainable tax strategies, helping clients assess, improve and
monitor tax processes, controls and risk management, and providing support to manage
relationships with tax authorities.

 Human Capital Tax

You will be helping our clients manage the complex challenges of deploying a globally
mobile workforce. You could be supporting the design and implementation of total reward
strategies to drive business strategy, in addition to managing tax and HR compliance and risk.

 Indirect Tax

You will show organizations how to manage indirect tax obligations, such as VAT and
customs duties, through careful planning and without causing supply chain disruptions.

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  International Tax Services

You and your team will create positive tax strategies that address the tax risks today’s
businesses face, meet cross-border reporting obligations and deal with transfer pricing issues.

 Transaction Tax

You will help clients to understand the tax implications of significant transactions, safely
.

negotiating risks and capitalizing on opportunities

2.6 ASSURANCE

Our Financial Services Assurance practice is built around our core audit delivery, but also
encompasses a wide range of assurance services across our different sectors. You will gain a
deep understanding of our clients’ businesses and their financial accounts, drawing on your
experience to provide options and recommendations to management and the board. We
mirror our clients’ global operations, so be prepared to travel and explore business in new
places. 

 External Audit

As an auditor at EY, you will provide independent verification of our client's compliance
with accounting principles. By doing so, you play a role in helping businesses accurately
reflect their financial picture - an essential function as we work to rebuild trust in financial
markets.

 Financial Accounting Advisory Services

Companies today face complex challenges as they deal with the requirements of international
accounting standards and changing corporate structures. You will help companies address a
wide variety of these challenges.

 Extended Assurance

Provide ongoing assurance to regulators, management and directors on the governance and
controls around processes that do not impact the financial statements.

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2.7 CORE BUSINESS SERVICES

Whichever function you join, your intellect, experience and entrepreneurialism will be an
invaluable support to our people right across Financial Services. They include Finance,
Information Technology, Human Resources, Administrative Support, Marketing,
Communications, Knowledge, Business Development, and Quality and Risk Management. In
return, we'll help you find opportunities to drive your career forward, develop expertise in
new areas and really stretch yourself, so that, however long you spend here, and wherever
you take your career in the future, the skills you learn here will last a lifetime.

 Finance

Our finance professionals are responsible for our organization's fiscal integrity and the clear
reporting of our results. Working in this team, you'll provide financial reporting that is
accurate, consistent and compliant with global financial policies and principles, and local
statutory rules and regulations.

 Knowledge

As part of our knowledge team, you'll make sure our client-serving professionals have access
to the right people, tools and information to help their clients meet their business needs. The
knowledge team provides a wide range of services to better understand client businesses and
business environments; create and manage organization-wide business tools and processes to
share important information, and advise people and teams on how to use content and tools
effectively.

 Talent

Our talent professionals develop and execute our people strategy, making them instrumental
to our plans. Working with them, you'll help provide the programs, measures and tools that
assist our employees in achieving their personal and professional goals.

 Accounts, Industries and Business Development

Become a key member of our business development team, identifying potential new clients,
developing major accounts and keeping the sales pipeline active. You’ll need to think on your
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feet, adapting to changing client requirements. Your experience of account management will
mean you deal with high profile clients confidently – and you’ll really care about client
satisfaction, going the extra mile when required.

 Marketing

Developing your marketing career at EY, you’ll work with some of the most astute
practitioners in professional services, who’ll challenge and stimulate you to produce your
best. Your colleagues will value your strategic input and respect you for your expertise.
They’ll look to you to deliver practical results and demonstrate the ways in which marketing
adds real value to our growing business.

2.8 BANKING & CAPITAL MARKETS

At EY, we see the full picture of opportunity. Our active engagement with the FinTech
community, governments and traditional financial services companies gives us firsthand
knowledge of the FinTech market. We work alongside clients to help them reframe and speed
up the organization to empower FinTech. We support FinTech start-ups and scale-ups as they
race to innovate and grow with our full service business offerings including assurance,
advisory, tax and transaction services. We support governmental bodies with FinTech scans,
best practice benchmarking and policy recommendations. And, we support the FinTech
community at large through trade bodies, incubators and accelerators; start up programs and
our comprehensive library of thought leadership.

 FinTech

Driven by innovative start-ups and major technology players, the booming FinTech industry
is capturing traditional market share by offering customers easy-to-use and compelling
products and services.

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 

 Digital disruption

Digital technology is transforming the financial services industry and customer expectations
are changing faster than financial services institutions are used to. We're working closely
with clients to facilitate the end-to-end digital transformation needed to adapt to this new and
fast-moving world.

 Artificial intelligence

In 2015 we launched a unique Global Innovation Center in Madrid, purpose built to serve the
needs of financial services clients as they seek out new and innovative ideas around how to
manage, and use their growing pool of data to win and keep customers.

2.9 INSURANCE

EY's Insurance practice is part of the fabric of the EMEIA insurance sector, which means that
we can offer our clients deep industry insight, strategic advice and technical expertise on the
subjects that matter most. We work with every major insurer in either an assurance or
advisory capacity at some point in time. We help our clients to prepare for regulatory change,
address the evolving needs of the customer and help them achieve sustainable growth by
gathering the best teams to tailor solutions to their challenges. Many of our people have held
industry roles and so have lived the issues our clients are facing. Our clients are at the heart
of everything we do and we support them to meet the evolving demands and challenges of the
EMEIA insurance industry." Andreas Freling, EMEIA Insurance Leader 

 Actuarial and risk management strategies

As the insurance market undergoes radical change, insurance companies face a difficult
balancing act. They must identify and assess new options for value creation while continuing
to manage risks and meet emerging regulatory requirements such as Solvency II and IFRS.

 Customer agenda

The buying behaviors, attitudes and preferences of insurance customers worldwide are
changing. To understand this transformation, insurers need to determine how they must adapt
to attract, deepen and preserve customer relationships.

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  Governance facing the sector

We, along with Tapestry Network, established the Insurance Governance Leadership
Network (IGLN), a global network centered on non-executive directors from a select group
of the largest insurers from Europe, North America and Asia. The IGLN provides a peer-to-
peer platform for participants to discuss critical issues facing the industry globally.

 The emergence of emerging markets

The global economy is at a turning point. Fast-growth economies in Asia, the Middle East,
Africa, Latin America and Eastern Europe now form almost half of global GDP and, in 2010,
they contributed 70% to overall global growth. These trends are accelerating. By 2050, fast-
growth economies are projected to account for 65% of the global economy.

2.10 WEALTH & ASSET MANGEMENT

EY has one of the largest dedicated wealth & asset management practices in professional
services. Our vision is to become the preeminent wealth and asset management professional
services firm, developing industry experts who lead the way in innovation, strategic thinking
and execution. We focus on helping our clients grow, optimize and protect their business.
The wealth and asset management industry is experiencing significant change as banks and
insurance companies are increasing their investment in these businesses and existing players
in the market are expanding their footprint. EY has one of the largest dedicated wealth &
asset management practices in professional services. Our vision is to become the preeminent
wealth and asset management professional services firm, developing industry experts who
lead the way in innovation, strategic thinking and execution. We focus on helping our clients
grow, optimize and protect their business. The wealth and asset management industry is
experiencing significant change as banks and insurance companies are increasing their
investment in these businesses and existing players in the market are EY has one of the
largest dedicated wealth & asset management practices in professional services. Our vision is
to become the preeminent wealth and asset management professional services firm,
developing industry experts who lead the way in innovation, strategic thinking and execution.
We focus on helping our clients grow, optimize and protect their business.

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  Regulatory change

As a result of the global financial crisis, enhanced compliance standards have taken hold
across the industry for all participants, particularly for alternative managers. Regulators are
more focused on risk and reporting than ever before.

 Digital disruption

Digital innovation is the ultimate disruptor. New technologies and tools are upending
established wealth and asset management processes and transforming the customer
experience. Wealth and asset management customers expect to engage with firms in
completely new ways. They want simplicity, transparency and the flexibility to interact with
firms (via mobile and other technologies) on their terms and schedules.

 Data architecture

Escalating compliance costs and greater infrastructure spending suggest that the largest
wealth and asset management firms enjoy more scale advantage than ever before. Gaining a
competitive edge in pricing is essential given that the demands and cost of regulatory
reporting are growing.

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 CHAPTER- 3

SWOT AND PESTEL ANALYSIS OF EY INDIA

3.1 SWOT ANALYSIS

SWOT Analysis of Ernst & Young analyses the brand/company with its strengths,
weaknesses, opportunities, & threats. In Ernst & Young SWOT Analysis, the strengths and
weaknesses are the internal factors whereas opportunities and threats are the external factors.

SWOT Analysis is proven management framework which enables a brand like Ernst &
Young to benchmark its business and performance as compared to the competitors and
industry. Ernst & Young is one of the leading brands in the management and consulting
sector.

Ernst & Young Brand Analysis

 Parent Company: Ernst & Young.

 Category: Financial services.

 Sector: Management & Consulting.

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  Tagline/ Slogan: Building A Better Working World; Quality In Everything We
Do.
 USP (UNIQUE SELLING PROPOSITION): EY have expertise in audit
and financial services.

Ernst & Young STP

 Segment: All Industries.

 Target Group: Fortune 500 companies and other big organizations.

 Positioning: EY is a financial consulting firm providing quality solutions globally.

3.2 STRENGTHS

 EY was ranked by Forbes magazine as the 8th largest private company in he United
States.
 EY have an extensive global reach covering over 40 countries.
 They were ranked no: 1 in the Forbes the Best Accounting Firms to work for.
 Workforce consists of the best talent pool from across the world.
 Over 1, 50,000 employees form a formidable workforce at Ernst & Young.
 EY offers expert services in tax advisory, consulting, assurance, and legal solutions.
 Acquisitions and Mergers have strengthened the brand’s position in the business.
 Crisp marketing campaigns directed at enterprises and corporates are a huge success
for EY brand.
 Sponsorship of various global events related to sports, knowledge etc. give a huge
presence to EY.

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3.3 WEAKNESSES

 Strong competition from other major players means growth is slow for EY.
 Failed to accomplish the Vision 2020.
 Companies setting up their own research centres affecting businesses.
 No proper Recruitment of talented people.

3.4 OPPORTUNITIES

 EY have immense opportunity in emerging economies.

 The more Ernst & Young spend on infrastructure the more clients they can attract.
 Companies continuously looking for consulting solutions.
 Do management and consulting services for NIFTY 50 companies.
 Acquiring smaller consulting firms can establish EY’S position strongly.

3.5 THREATS

 They have allegedly had many lawsuits filed against them e.g. they were involved in
Lehman Brothers; they were also sued by Akai Holdings, etc.
 The global recession could affect EY’s consulting business
 Fluctuating global currencies affects operations.
 Increasing competition can reduce market share of Ernst & Young.

3.6 ERNST & YOUNG COMPETITORS

 McKinsey and Company.

 Accenture.
 Deloitte Consulting.

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  PWCPriceWaterHouseCoopers.

 KPMG.
 Boston Consulting Group (BCG).
 A T Kearney.
 Booz and Company.
 Bain and Company.

3.7 PESTEL ANALYSIS

The PESTEL analysis is a tool devised by Harvard professor Francis Aguilar to conduct a
thorough external analysis of the business environment of any industry for which data is
available. This is an important step for eventually devising a strategy that can effectively
maneuver the competition to maximize a firm's chances of sustainability and profitability.
PESTEL is an amalgam of initials of various factors that not only affect EY but the entire
industry as a whole- these factors are namely Political, Economic, Social, Technological,
Environmental and Legal.

PESTEL analysis provides valuable insight into the operating challenges that any company in
the industry appears to face, and so the company in question may face as well. An
understanding of the overall competitive landscape will prevent investors and entrepreneurs
from partaking in any risky ventures if the risk arises out of, say, an unstable political regime
or a sudden economic recession. This may be best exemplified by the recent exit of the

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United Kingdom from the European Union. The sudden fallout was political and caused
many investors to pull out of new ventures and halt their expansions, as the future became
uncertain in the wake of this decision.

 Political Factors that Impact EY

The political factors that may impact the profitability or chances of survival of the company
are quite diverse. The political risks vary from sudden changes in existing political regimes to
civil unrest to major decisions taken by the government. In cases of possible multinationals,
one may also include political factors that take place/ affect not only the host country but also
all countries that contain business operations, or that may engage in trade with EY

To properly appraise the extent of the overall systematic political risk that EY may be
exposed to, the following factors should be considered before taking part in any investments:

 The level of political stability that the country has in recent years.
 The integrity of the politicians and their likelihood to take part in acts of corruption,
as the resulting repercussions may lead to possible impeachments or resignations of
high level government employees.
 The laws that the country enforces, especially with regards to business, such as
contract law, as they dictate what EY is and is not allowed to do. Some countries, for
example, prohibit alcohol or have certain conditions that must be fulfilled, while some
government systems have inefficient amounts of red tape that discourage business.
 Whether or not a company’s intellectual property (IP) is protected. For example, a
country that has no policies for IP protection would mean that entrepreneurs may find
it too risky to invest in EY
 The trade barriers that the host country has would protect EY; however, trade barriers
that countries with potential trade partners would harm companies by preventing
potential exports.
 A high level of taxation would demotivate companies like EY from maximizing their
profits.
 The risk of military invasion by hostile countries may cause divestment from
ventures.

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  A low minimum wage would mean higher profits and, thus, higher chances of
survival for EY

 Economic Factors that Impact EY

Economic factors are all those that pertain to the economy of the country that EY, such as
changes in the inflation rate, the foreign exchange rate, the interest rate, the gross domestic
product, and the current stage of the economic cycle. These factors, and their resulting impact
on aggregate demand, aggregate investment and the business climate, in general, have the
potential to make a company highly profitable, or extremely likely to incur a loss. The
economic factors in the PESTEL analysis are macroeconomic.

The economic factors that EY may be sensitive to, and in turn should consider before
investing may include the following:

 The economic system that is currently operational in the sector in question- whether it
is a monopoly, an oligopoly, or something similar to a perfect competition economic
system.
 The rate of GDP growth in the country will affect how fast EY is expected to grow in
the near future.
 The interest rates in the country would affect how much individuals are willing to
borrow and invest. Higher rates would result in greater investments that would mean
more growth for EY
 However efficiently the financial markets operate also impact how well EY can raise
capital at a fair price, keeping in mind the demand and supply.
 The exchange rate of the country EY operates in would impact the profitability of EY,
particularly if EY engages in international trade. The stability of the currency is also
important- an unstable currency discourages international investors.
 A high level of unemployment in the country would mean there is a greater supply of
jobs than demand, meaning people would be willing to work for a lower wage, which
would lower the costs of EY

 Social Factors that Impact EY

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The social factors that impact EY are a direct reflection of the society that EY operates in,
and encompasses culture, belief, attitudes and values that the majority of the population may
hold as a community. The impact of social factors is not only important for the operational
aspect of EY, but also on the marketing aspect of the organization. A thorough understanding
of the customers, their lifestyle, level of education and beliefs in a society, or segment of
society, would help design both the products and marketing messages that would lead to a
venture becoming a success.

The social factors that affect EY and should be included in the social aspect of the PESTEL
analysis include the following:

 The demographics of the population, meaning their respective ages and genders,
vastly impact whether or not a certain product may be marketed to them. Makeup is
mostly catered to women, so targeting a majority male population would be less
population than targeting a population that is mostly female.
 The class distribution among the population is of paramount importance: EY would
be unable to promote a premium product to the general public if the majority of the
population was a lower class; rather, they would have to rely on very niche marketing.
 To some extent, the differences in educational background between the marketers and
the target market may make it difficult to relate to and draw in the target market
effectively. EY should be very careful not to lose the connection to the target market's
interests and priorities.

 EY needs to be fully aware of what level of health standards, reactions to harassment

claims and importance of environmental protection prevail in the industry as a whole,
and thus are expected from any company as they are seen as the norm

 Technological Factors that Impact EY

Technology can rapidly dismantle the price structure and competitive landscape of an
industry in a very short amount of time. It thus becomes extremely important to constantly

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and consistently innovate, not only for the sake of maximizing possible profits and becoming
a market leader, but also to prevent obsolescence in the near future. There are multiple
instances of innovative products completely redesigning the norm for an entire industry: Uber
and Lyft dominate the taxi cab industry; smartphones have left other phones an unviable
option for most et cetera.

The technological factors that may influence EY may include the following:

 The recent technological developments and breakthroughs made by competitors, as

mentioned above. If EY encounters a new technology that is gaining popularity in the
industry in question, it is important to monitor the level of popularity and how quickly
it is growing and disrupting its competitors’ revenues. This would translate to the
level of urgency required to adequately respond to the innovation, either by matching
the technology or finding an innovative alternative.
 How easy, and thus quickly, will the technology be diffused to other firms in the
industry, leading to other firms copying the technological processes/ features of EY
 How much an improvement of technology would improve/ transform what the
product initially offers. If this improvement is drastic, then other firms in the industry
suffer more heavily.
 The impact of the technology on the costs that most companies in the industry are
subject to have the potential to increase or reduce the resulting profits greatly. If these
profits are great in number, they may be reinvested into the research and development
department, where future technological innovations would further raise the level of
profits, and so on, ensuring sustainable profits over a long period of time.

 Environmental Factors that Impact EY

Different industries hold different standards of environmental protection in their head as the
norm. This norm then dictates what every company should aim for, in the least, to prevent
becoming the target of pressure groups and boycotts due to a lack of environmental
conscientiousness. A company in the textile industry, for example, is not expected to incur
the same level of pollution and environmental degradation as an oil company. The new

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consumer, armed with the interest and the knowledge it carries, prefers to give its business to
companies it views as more ethical, particularly about the environment in the wake of global
warming.

The environmental factors that may significantly impact EY include:

 The current weather conditions may significantly impact the ability of EY to manage
the transportation of both the resources and the finished product. This, in turn, would
affect the delivery dates of the final product in the case of, say, an unexpected
monsoon.
 Climate change would also render some products useless. For example, in the case of
textiles, in countries where the winter has become very mild due to Global Warming,
warm winter clothes have much less of a market.
 Those companies that produce extremely large amounts of waste may be required by
law to manage their environmental habits. This may include pollution fines and
quotas, which may place a financial strain on EY
 If EY should (knowingly or unknowingly) contribute to the further endangerment of
an already endangered species may face not only the consequences from the law but
also face a backlash from the general public who may then boycott EY in retaliation.
 While relying, in any percentage, on renewable energy may be expensive, it often
receives support not only from the government but also from its customer base, who
may be willing to pay a premium price for the products that EY may produce.

 Legal Factors that Impact EY

The government institutions and frameworks in a country, while technically also political and
thus subject to whichever political party holds the majority in a government body, are also
legal and thus should be considered in a PESTEL analysis. Often EY policies on their own
are not enough to efficiently protect EY and its workers, making EY appear an undesirable
place of employment that may repel skilled, talented workers.

The legal factors that deserve consideration include the following:

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 Intellectual property laws and other data protection laws are, as mentioned earlier, in
place to protect the ideas and patents of companies who are only profiting because of
that information. If there is a likelihood that the data is stolen, then EY will lose its
competitive edge and have a high chance of failure.
 Discrimination laws are placed by the government to protect the employees and
ensure that everyone in EY is treated fairly and given the same opportunities,
regardless of gender, age, disability, ethnicity, religion or sexual orientation.
 Health and safety laws were created after witnessing the horrible conditions that
employees were forced to work in during and directly after the industrial revolution.
Implementing the proper regulations may be expensive, but EY has to engage in it,
not only due to the law but also out of EY's personal feeling of ethical and social
responsibility to other human beings.
 Laws are also placed to ensure a certain level of quality or reasonable price for certain
products to keep the customer safe and prevent them for being provided. The
industries this applies to find often their costs elevated.

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 CHAPTER -4

LEARNING OUTCOMES

4.1 SKILLS LEARNT DURING INTERNSHIP

An Internship is a learning experience of its own kind. The importance it has got over the
years in building one’s career is not exaggerated; given what it has to give back. Neither its
spoon fed school learning, nor pressure filled workload. And in between, you not only learn
the basics of work life but also the soft skills required for a brighter professional career. The
seven important skills that I learnt as a management student are; TEAM WORK, PROBLEM
SOLVING SKILLS, ADAPTABILITY, COMMUNICATION, RESPONSIBILITY and
TIME MANAGEMENT.

4.2 AREAS OF TRAINING AND OBSERVATION

FORM 26AS

WHAT IS FORM 26AS

Form 26AS, also called as Annual Statement, is a consolidated tax statement which has all
tax related information (TDS, TCS, Refund etc.) associated with a PAN. It shows how much
of your tax has been received by the government and is consolidated from multiple sources
like your salary / pension / interest income etc. This form contains the annual tax statement
under Section 203AA and Rule 31AB.  This article explains Form 26AS in detail with
images.

IMPORTANCE OF FORM26AS

Tax Credits appearing in Part A, A1 and B of the Annual Tax Statement are on the
basis of details given by deductor in the TDS or TCS statement filed by them. The same
should be verified before claiming tax credit and only the amount which pertains to you
should be claimed

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OVERVIEW OF FORM 26AS

 Form 26AS is generated annually, for a Financial Year.

 Form 26AS will be generated whenever tax related transaction (TDS
deducted,Advance tax paid) happens in relation to the tax payer. It is a live document
which is updated as the transactions are reported / processed for the given FY.
 Only a registered PAN holder can view their Form 26AS on TRACES. You can view
your Form 26AS in TRACES from AY 2009-10 onwards or from FY 2008-09
onwards.
 The address reflecting in Annual Tax Statement (Form 26AS) is picked up from
Income Tax Department’s PAN database with the details of latest PAN card issued to
you
 The password for opening Form 26AS will be your Date of Birth (in
DDMMYYYY format), e.g., if your date of birth is 01-Feb-1980, password will be
01021980.

STRUCTURE OF FORM 26AS

The Form 26AS (Annual Tax Statement) for an Assessment Year is divided into parts
described below

 PART A – Details of Tax Deducted at Source (All amount values are in INR)
o This section will show the TDS deducted from your salary / pension income
and also TDS deducted by banks on your interest income. TDS deducted by each
source is shown as a separate table
 PART A1 – Details of Tax Deducted at Source for 15G / 15H
o This section will show transaction in those financial institutions such as banks
where the individual has submitted Form 15G / 15H. TDS in these cases would
be zero (because you have submitted 15G/15H). This section enables you to keep
a track of all the interest gain which has not been taxed.
 PART B – Details of Tax Collected at Source:
o Tax Collected at Source (TCS) is collected by the seller from the buyer at the
time of sale of specified category of goods (such as Alcoholic liquor for human

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 consumption, Scrap, Parking lot, Toll plaza). The TCS Rate vary for each
category of goods and the TCS is to be deposited with the govt.
 PART C – Details of Tax Paid (other than TDS or TCS)
o If you have paid Advance Tax or Self-Assessment Tax, this will be listed
here, whenever you deposit your advance tax / self-assessment tax directly to
bank, the bank will upload this information around three days after the cheque
has been cleared.
 PART D – Details of Paid Refund
o If you have got any tax refunds in that assessment Year it would be listed
under this section.
 PART E – Details of AIR Transaction.
o If you make some high value transactions, such as investment in property and
mutual funds, then these transactions are automatically reported to the income
tax department by banks and other authorities through Annual Information
Return (AIR).

OBSERVATION

I learnt how FORM 26AS plays a major role in calculation of the income tax calculation of
an individual. And also even the smallest transaction made by an individual matters a lot.
FORM 26AS is the annual statement where it contains all the major and minor i.e, the
consolidated details of the individual’s income. It includes both TDS and TDS REFUND.
This enhanced my knowledge on how the income tax statement is prepared for every
individual.

WHAT IS AN INDIVIDUAL TAX RETURN

An individual tax return is a form the individual submits to a federal, state or local taxing
agency to report income, calculate and pay taxes. The disclosure of pertinent information
assists in assessing the tax due.

The Internal Revenue Service is the taxing authority in the U.S. The United States has a
voluntary reporting system that permits the electronic or hard-copy filing of individual tax
returns. Countries around the world have taxing agencies who oversee tax collection.  Some
tax agencies provide individual taxpayers with pre-filled individual tax returns, while others

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require the taxpayer fill and file the returns on their own. Also, some countries permit
electronic filing of online returns, while others insist on a documentary, hard-copy
submission.

THREE INDIVIDUAL TAX RETURN FORMS

Form 1040 is a densely packed two-page form with an abundance of schedules to complete.
Any taxpayer up to the challenge may use this individual tax return form. However,
individuals with dependents, income above $100,000, and who must use IRS Form 1040.
Form 1040 is the most complex of all individual tax filing documents to complete. This
document gives taxpayers the ability to submit information on complex investments, itemized
deductions, and various tax credits.

Form 1040A is a two-page individual tax return for those with dependents and an income
below $100,000. Allowable income sources are wages, salary, tips, capital gains, dividends,
interest, unemployment compensation, pensions, annuities, Social Security, railroad
retirement, taxable scholarships, and the Alaska Permanent Fund dividends. To use this form,
the taxpayer must take the standard deduction. The 1040A is a simplified version of Form
1040. Individuals may file under any of the five filing statuses, single, head of household,
married filing separately, married filing jointly, or widowed. Return form for filers with no
dependents and income below $100,000.

Form 1040EZ is a one-page individual tax and file as either a single taxpayer or married
filing jointly taxpayer. Only the earned income credit (EIC) may be claimed as a deduction
on this form.

OTHER FORMS TO REPORT INDIVIDUAL TAXES

Individual tax return for submitting income tax is not the only form that a taxpayer may need
to complete. An example is the gift tax where the taxpayer must file IRS Form 709 and pay
the gift tax owed. Some individuals are required to estimate their annual tax and pay it by the
quarter, or every 3-months on Form 1040ES. Payment of estimated tax is returned with Form
1040V to the regional IRS office which serves their state. We all make mistakes sometimes.
If a taxpayer needs to amend their individual tax return, they will use Form 1040X. The
individual tax return is a type of income tax return filed by an individual. Both single and

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married taxpayers, with and without dependents, file a return. Individual filers always file
their returns on a version of Form 1040. Every individual filer who earns a certain amount of
income must file this type of tax return.

OBSERVATION

Under this head I got to learn about the importance of individual taxes in every individual’s
and the government’s perspective. At first I was explained about every aspect of the
individual taxation and then I got to learn about the important documents submitted to file the
individual taxes. This enhanced my practical knowledge on the filing of individual taxes. I
was also asked to manually compute the individual tax for an individual where I learnt about
the various heads of taxes and its importance. Also I got to learn that all the required
documents are supposed to submitted promptly, if not the calculation of this would be a
tedious process.

GST (GOODS AND TAXES) SERVICE

GST is considered as an indirect tax for the whole nation that would make India one unified
common market. It is a tax which is imposed on the sale, manufacturing and the usage of the
goods and services. It is a single tax that is imposed on the supply of the goods and services,
right from the manufacturer to the customer. The credits of the input taxes that are paid at
each stage will be available in the subsequent stage of value addition which makes
GST essentially a tax only on the value addition on each stage. The final consumers will bear
only the tax charged by the last dealer in the supply chain with the set of benefits that are at
all the previous stages.

It is charged at the national and state level at similar rates for the same products and it also
replaces almost all the current indirect taxes that are imposed separately by the Centre and the
States. Goods & Services Tax is a destination based tax which means that the tax is paid at
the place of supply.

Some of the State taxes that will be subsumed under GST are –

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Some of the Central taxes that would be subsumed under GST are –

BENEFITS OF GST

1. Eliminating the cascading effects of taxes

2. Tax rates would be comparatively lower
3. Reduce tax evasion and increase the revenue and GDP by widening the tax base
4. There would be seamless flow of the input tax credit
5. Price of the goods and the services would fall
6. There would efficient supply chain management

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 7. It would promote the shift from unorganized sector to organized sector.
8. It would eliminate 17 indirect taxes and therefore the compliance cost would fall

ELIGIBILITY

Its eligibility would primarily be decided on the basis of turnover. Small taxpayers may thus
either be exempt (turnover < Rs. 20 lakh) or they may opt for the Composition
Scheme (turnover < Rs. 75 lakhs). The medium and large taxpayers will have to file all
GST Returns. The diagram below would help us to get the concept of working of GST in a
better way.

 All the taxpayers that are eligible for exemption will have the option of paying tax
with Input Tax Credit benefits through Voluntary Registration.
 The list of the exempted goods and services would be common for the Centre and the
States/U.T.s.
 WORKING

The tax cycles for the Mid-Size & Large Taxpayers are different –

1. Firstly, the seller files GSTR 1 (before the 10th of the following month) by recording
all the sales
2. Then the buyer reviews the sales in GSTR 2A
3. The buyer would then approve whether the sales are legitimate or not and file in
GSTR 2 (before the 15th of the following month)

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 4. If the buyer modifies the sales that were earlier filed, then the seller can see such kind
of modifications in GSTR 1A and can approve or disapprove

And thus finally when, both the buyer as well as the seller approve, GSTR 3 (before the 20th
of the following month) is generated with the payment of taxes.

TYPES OF TAXES

The various types of taxes that are under GST are –

1. If the supply of the goods and the services are made within the state, then the two
types of taxes which are applicable are, the Central Goods and Services Tax
(CGST) and the State Goods and Services Tax (SGST).
2. If the supply is made across the state, then Integrated Goods and Services Tax (IGST)
are applicable.

CESS
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Cess will be chargeable on the Value of Supply for 5 years on the taxes on certain
specified goods and services. But in the case of import of goods into India, cess would be
levied but then collected on customs duties under the Customs Tariff Act, 1975. The only
exception is that no cess would be levied by a taxpayer who opts for the composition scheme.

IMPORT & EXPORT

In the case of exports, the exports would be treated as zero-rated supply. So, no tax is
payable on the exports but Input Tax Credit/ Refund benefits would be allowed.

And

In the case of imports, the imports would be treated as inter-state supplies. Hence, IGST
would be applicable in addition to the customs duties.

GSTR 4

a. What is GSTR-4?
GSTR-4 is a GST Return that has to be filed by a Composition Dealer. Unlike a normal
taxpayer who needs to furnish 3 monthly returns, a dealer opting for the composition scheme
is required to furnish only 1 return which is GSTR-4.

b. When is GSTR-4 due?

GSTR 4 has to be filed on a quarterly basis.

The due date for filing GSTR 4 is 18th of the month after the end of the quarter.

Period Due Date

April-June 2018 18th July 2018

July-Sept 2018 18th Oct 2018

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Oct-Dec 2018 18th Jan 2019*

Jan-Mar 2019 18th Apr 2019*

* subject to change in the GST Return Filing, as recommended in 27th GST council meeting

c. Who should file GSTR-4?

A taxpayer opting for the Composition Scheme is required to file GSTR-4.

d. How to revise GSTR-4?

GSTR-4 cannot be revised after filing on the GSTN Portal. Any mistake in the return can be
revised in the next month’s return only. It means that, if a mistake is made in the GSTR-4
filed for the July-September quarter, the rectification for the same can be made only when
filing the next quarter’s GSTR-4.

e. Late Fees and Penalty

A penalty of Rs. 200 per day is levied if the GSTR-4 is not filed.

The maximum penalty that can be charged is  Rs. 5,000.

Also, if the GSTR-4 is not filed for a given quarter, then the taxpayer cannot file the next
quarter’s return either.

As per Latest Notification No. 73/2017 – Central Tax late fees for GSTR-4 has been reduced
to Rs. 50 per day of default.  Also, the late fees for NIL return in GSTR-4 have been reduced
to Rs. 20 per day of delay.

GSTR 9

a. What is GSTR-9 annual return?

GSTR 9 is an annual return to be filed yearly by taxpayers registered under GST. It consists
of details regarding the outward and inward supplies made/received during the relevant
previous year under different tax heads i.e. CGST, SGST & IGST and HSN codes. Basically,
it is a consolidation of all the monthly/quarterly returns (GSTR-1, GSTR-2A, GSTR-3B)
filed in that year. Though complex, this return helps in extensive reconciliation of data for
100% transparent disclosures.

b. What are the different types of annual returns?

There are 4 types of annual returns:

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  GSTR 9: GSTR 9 should be filed by the regular taxpayers who are filing GSTR 1,
and GSTR 3B.
 GSTR 9A: GSTR 9A should be filed by the persons registered under the composition
scheme of GST.
 GSTR 9B:  GSTR 9B should be filed by the e-commerce operators who have filed
GSTR 8 during the financial year.
 GSTR 9C: Every person registered under GST, whose aggregate turnover during a
financial year exceeds two crores rupees would need to get his accounts audited as
specified under sub-section (5) of section 35 of the GST Act. A copy of the audited
annual accounts and a reconciliation statement, duly certified, should be furnished in
form GSTR 9C.

c. Who should file GSTR 9, the annual return?

As mentioned above, all taxpayers/taxable persons registered under GST must file their
GSTR 9. However, the following are NOT required to file GSTR 9:

 Taxpayers opting composition scheme (They must file GSTR-9A)

 Casual Taxable Person
 Inputservicedistributors.
Non-residenttaxablepersons

 Persons paying TDS under section 51 of CGST Act.

d. What is the due date to file GSTR-9?

GSTR-9 is to be filed on or before the 31st of December of the subsequent financial year.
However, the Government has the power to extend this due date to such other date it
considers necessary.

For instance:

 For FY 2017-18, the due date for filing GSTR 9 has been extended to 30th June
2019*.
 For FY 2018-19 the due date for filing GSTR 9 is 31st December 2019*.

Important: GSTR-9 once filed cannot be revised.

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Broadly, this form asks for disclosure of annual sales, bifurcating it between the cases that are
subject to tax and not subject to tax. On the purchase side, the annual value of inward
supplies and ITC availed thereon is to be revealed.

Let’s go through each part:

This part asks for the basic details such as
Part I (Table 1-3) financial year, GSTIN of the filer, legal and
trade names. These details are auto-populated.

Here, the taxpayers have to provide details of

outward and inward supplies declared
during the Financial Year (FY). This
Part II (Table 4-5) information can be gathered and verified from
the various GSTR-1 and GSTR-3Bs filed in
that year.
td>

This section deals with the details of the Input

Tax Credit (ITC) as declared in returns filed
during the FY. Details of the ITC reversed and
ineligible ITC as declared in individual returns
has to be entered in the section as well. A few
Part III (Table 6-8)
of these details will be picked up from the
GST returns already filed. For example –
Information available in GSTR-2A as on
01.05.2019 will be auto-populated in Table 8A
of GSTR-9.

In this section, details of relevant taxes

Part IV (Table 9) already paid and declared in returns filed
during the FY has to be entered.

Part V (Table 10-14) This part asks for details of the transaction
that are related to the (relevant) FY,
declared in the returns of the next financial
year. Additional or omitted entries belonging
to the previous year, but reported in the

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 current year should be declared here as well.

All other information has to be reported here.

This could include:

 GST demand and refund details;

 Supplies received from composition
Part VI (Table 15-19) taxpayers,
 Deemed supply goods sent on approval
basis;
 HSN-wise summary of outward and
inward supplies
 Late fees paid/payable

The principal source of data for preparing GSTR-9 will be GSTR-1 and GSTR-3B that are
already filed. The data as per the books of accounts also matters. Therefore, all information
must be cross-checked with the books of accounts before it is declared in the annual return.

OBSERVATON

Under this topic I got to learn about every single aspect of GST and its rates. It’s really very
important to know about the current GST rates and its slabs. I was allotted to Trived R where
he gave me a lot of inputs about the current GST slabs and its procedures. I got an
opportunity to work on mock filing of GST. I was asked to work on the appropriate
procedures required for each kind of GST. This gave me a whole new perspective of the GST
taxation, its really important for each and every individual to know about the tax rates. This
enhanced my knowledge about the tax rates applied for each and every goods and service.
Also I got to see the actual GST forms and its filing. Filed GST for major companies and did
GST calculations.

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4.3 MY LEARNINGS AS A MANAGEMENT INTERN

My Internship experience at Ernst & Young LLP India has taught me more than I could have
imagined. I feel my duties were diverse, and ever-changing. It was the most beneficial
lessons I have learnt. My internship has definitely taught given me a better understanding of
my skill sets and where my career may take me. I now have a very valuable experience under
my belt. The following are the key points of my learning’s;

 Time management.
 How to use a pragmatic approach at work place.
 Real time office experience.
 How to work with a team.
 Worked with the EY Digi Gst portal.
 Logged into the GST portal and filed the returns (GSTR1, GSTR3, GSTR6, GSTR 9)
for major companies like TVS, DELL and Sundaram clayton.
 Visited the Indirect tax department at Domlur.
 Learnt networking and got a lot of contacts.
 Molded myself to step into the professional world and experienced being a
professional.
 Professional way of dressing.
 Filed TDS Returns and learnt GST calculations.
 Learnt to do self-learning and to be independent.

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 CHAPTER – 5

5.1 CONCLUSION

This is a Report on my internship at Ernst & Young LLP, Bangalore. Through this internship,
I have improved my knowledge in the Accounting Skills, On the Basics of accounting and the
accounting concepts and how it is practically applied in an auditing firm, about the
accounting entities. It made be believe in the quote, The Theoretical Knowledge We Gain
through Books Is Different from Practical Implementation. I had an exposure how the
management services of the clients are met.

I also had a deep learning and exposure about GST and practically learnt about the filing of
GST forms to the firm’s Clients. I learnt to keep myself motivated and got used to the Long
Working hours and experienced the Working styles in the real auditing firm. I experienced
how the firm uses a Pragmatic approach while dealing with clients, how well they analyze the
problem and come up with the best solution, Punctuality and Time management in finishing
the works on time.

Thus, I conclude that all information furnished in the report is useful for my career
advancement; I will apply what I learnt in the place where I will be placed in the near future.
My trainers and Mentors coached me so well and taught me everything in spite of their busy
schedule and made me gain the best experience and the best of learning during this
internship.

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