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SUMMER TRAINING REPORT

ON

E-TDS, E-TCS RETURN & ACCOUNTING PROCEDURE


METHOD OPTED BY

VARDHMAN SPINNING AND GENERAL MILLS


(A UNIT OF VARDHMAN TEXTILES LTD)
Submitted to Punjab Technical University
In the partial fulfillment of the
Requirements for the
Degree
of
Masters of Business Administration
Submitted by:
MONIKA
University Registration No.
104552248551
DEPARTMENT OF MANAGEMENT

Gujranwala Guru Nanak Institute of


Management and Technology Institute
LUDHIANA
AUGUST-2011
VARDHMAN SPINNING AND GENERAL MILL

ACKNOWLEDGEMENT

We hereby convey our deep acknowledgement to all those who made it


possible for me to complete this project, by extending their support and
continuous co-operation.
Our sincere gratitude to MRS.HARMINDER KAUR Madam whose
constant guidance, efforts, heartfelt support, suggestions and consideration
helped us in the successful completion of this research.

VARDHMAN SPINNING AND GENERAL MILL

DECLARATION
We the students of Gujranwala Guru Nanak Institute Of
Management & Technology, Department of Management,
hereby solemnly declare that the project report on summer
training " conducted is the original work done by us and
moreover to the best of our knowledge, no similar report on
this very company has been submitted to G.G.N. Institute Of
Management & Technology, Department of Management so
far, for the fulfilment of the requirement of the course of
study under M.B.A program.
The project report is submitted in partial fulfilment of the
requirements for the award of the degree of Masters of
Business Administration, being conducted at G.G.N. Institute
Of Management & Technology, Department of Management.

MONIKA (104552248551)

VARDHMAN SPINNING AND GENERAL MILL

CERTIFICATE
This is to certify that research project entitled SUMMER
TRAINING, Submitted for the partial fulfillment of Degree of
Master of Business Administration ( MBA ) of GGNIMT,
Ludhiana affiliated to Punjab Technical University Jalandhar,
is a bonafide research work carried out by

MONIKA and

under my supervision and no part of this thesis has been


submitted to any other degree.

MRS.
HARMINDER KAUR
Associate Prof.
GGNIMT

VARDHMAN SPINNING AND GENERAL MILL

PREFACE
FOR the management carrer, it is important to develop
managerial skills in order to achieve positive and concrete
results ,along with theoretical concept, the exposure of real
life situation in corporate world is very much needed to
fulfill this need, this practical training is required.
I underwent training in VERDHMAN
TEXTILES located
at CHANDHIGARH ROAD, LUDHIANA.
THIS report is my training in VERDHMAN TEXTILES as a part
of MBA.THE subject of my report is E-TDS AND E-TCS
ACCOUNTING PROCEDURES.

VARDHMAN SPINNING AND GENERAL MILL

TABLE OF CONTENTS
S.NO

PARTICULARS

PAGE
NO.

1.

CHAPTER 1-COMPANY PROFILE

2.

INTRODUCTION OF THE VARDHMAN


LOGO OF VARDHMAN
HISTORY
MISSION STATEMENT
BUSINESS OF THE GROUP
HOLDING
PHILOSOPHY OF VARDHMAN
PRODUCT PORTFOLIO
MARKET PERFORMANCE
BALANCE SHEET
AWARDS AND ACHIEVEMENTS
YEARS OF ESTABLISHMENT
FOREIGN COLLABORATION
FINANCE DEPARTMENT

3.

INTRODUCTION
NEED OF FINANCE DEPARTMENT
RESPONSIBILITY
8 SECRETS OF VSGM
5 S CONSIDER IN VARDHMAN
SOCIAL RESPONSIBILITY
TPM POLICY
SWOT ANALYSIS
CHAPTER 2- RESEARCH METHODOLOGY

REMARK

a) INTRODUCTION OF THE PRODUCT


b) GENERAL OVERVIEW OF E-TDS
c) PROCEDURE FOR FILLING OF TDSRETURNS
d) SOFTWARE FOR E-TDS/TCS
e) STAGES OF TAX DEDUCTION SOURCE
f) FORM TO BE USED FOR FILLING
TDS/TCS
VARDHMAN SPINNING AND GENERAL MILL

g) 5-STEPS OF E-TDS/TCS RETURN


h) TDS PROVISIONS
i) PREPARATION & FILLING OF E-TDS
RETURN
j) OBJECTIVE OF THE STUDY
k) RESEARCH DESIGN & METHOD OF
DATA COLLECTION
l) SCOPE,IMPORTANCE AND LIMITATION
OF STUDY
SUGGESTION AND RECOMMENDATION

4.
5.

SUMMARY
6.

BIBLIOGRAPHY

VARDHMAN SPINNING AND GENERAL MILL

VARDHMAN SPINNING AND GENERAL MILL

INTRODUCTION OF VARDHMAN
GROUP OF COMPANIES
Vardhman Group is a leading textile conglomerate in India having a turnover of
$700 mn. Spanning over 24 manufacturing facilities in five states across India,
the Group business portfolio includes Yarn, Greige and Processed Fabric,
Sewing Thread, Acrylic Fibre and Alloy Steel.

Vardhman Group manufacturing facilities include over 8,00,000 spindles, 65 tons


per day yarn and fibre dyeing, 900 shuttleless looms, 90 mn meters per annum
processed fabric, 33 tons per day sewing thread, 18000 metric tons per annum
acrylic fibre and 100,000 tons per annum special and alloy steel.
Vardhman has evolved through history from a small beginning in 1965 into a
modern textile major under the dynamic leadership of its chairman, S.P.Oswal.
His vision and insight has given Vardhman an enviable position in the textile
industry. Under his leadership, Vardhman is efficiently using resources to
innovate, diversify, integrate and build its diverse operations into a dynamic
modern enterprise.

VARDHMAN SPINNING AND GENERAL MILL

LOGO OF VARDHMAN GROUP

FLAMES signifies the growth of each and every individuals associated with it

he or she is worker an employee shareholders or customers.


STICK symbolizes cotton, which is basic raw material of the core product of
Vardhman group.
V stands for vardhman group.

VARDHMAN SPINNING AND GENERAL MILL

HISTORY
The industrial city of Ludhiana, located in the fertile Malwa region of Central
Punjab is otherwise known as the "Manchester of India". Within the precincts of
this city is located the Corporate headquarters of the Vardhman Group, a
household name in Northern India. The Vardhman Group, born in 1965, under
the entrepreneurship of Late Lala Rattan Chand Oswal has today blossomed
into one of the largest Textile Business houses in India.
At its inception, Vardhman had an installed capacity of 14,000 spindles, today; its
capacity has increased multifold to over 8 lacs spindles. In 1982 the Group
entered the sewing thread market in the country which was a forward integration
of the business. Today Vardhman Threads is the second largest producer of
sewing thread in India. In 1990, it undertook yet another diversification - this time
into the weaving business. The grey fabric weaving unit at Baddi (HP),
commissioned in 1990 with a capacity of 20,000 meters per day, has already
made its mark as a quality producer of Grey poplin, sheeting, shirting in the
domestic as well as foreign market. This was followed by entry into fabric
processing by setting up Auro Textiles at Baddi and Vardhman Fabric at
Budhni,Madhya Pradesh. Today the group has 900 shuttleless looms and has
processing capacity of 90mn meters fabrics/annum.
In the year 1999 the Group has added yet another feather to its cap with the
setting up of Vardhman Acrylics Ltd., Bharuch (Gujarat) which is a joint venture in
Acrylic Fibre production undertaken with Marubeni and Exlan of Japan. The
company also has a strong presence in the markets of Japan, Hong Kong,
Korea, UK and EU in addition to the domestic market. Adherence to systems and
a true dedication to quality has resulted in obtaining the coveted ISO 9002/ ISO
14002 quality award which is the first in Textile industry in India and yet another
laurel to its credit.
VARDHMAN SPINNING AND GENERAL MILL

MISSION STATEMENT OF GROUP


Vardhman aims to be world class textiles organization producing diverse range of
products for the global textiles market. Vardhman seeks to achieve customer
delight through excellence in manufacturing and customer service based on
creative combination of sate-of-the-art technology and human resources.
Vardhman is committed to be responsible corporate citizen.

S P OSWAL, Chairman-Vardhman Group

VARDHMAN SPINNING AND GENERAL MILL

BUSINESS OF THE GROUP


Yarns
Yarn Manufacturing is the major activity of the group accounting for 47 percent of
the group turnover. Vardhman is virtually a supermarket of yarns, producing the
widest range of cotton, synthetics and blended, Grey and Dyed yarns and Hand
Knitting Yarns, in which Vardhman is the market leader in India. The group has
twenty one production plants with a total capacity of over 8 lacs spindles, spread
all over the country. In many of the yarn market segments, Vardhman holds the
largest market share. Vardhman is also the largest exporters of yarn from India,
exporting yarns worth more than USD 150 million.
Sewing Thread
Vardhman is the second largest producer of sewing thread in the country. The
sewing thread manufacturing capacity is being expanded from 17 tons per day to
33 tons per day in its sewing thread plants located at Hoshiarpur, Baddi and
Ludhiana. Sewing threads contributes 11 percent of the group turnover.
Fabrics
The group has created state-of-the-art fabric weaving and processing facilities in
its plant at Baddi, Northern India. The group has installed 900 shuttle less looms
and a fabric processing capacity of 90 million meters per annum in collaboration
of Tokai Senko of Japan. Fabrics business contributes 22 percent to the group
turnover.
Fibre
The group has set up an Acrylic Staple Fibre plant at Bharuch in Gujarat in
collaboration with Marubeni and Japan Exlan of Japan. The plant has annual
capacity of 18000 tons per annum. Fibre contributes 8 percent to the total
turnover of the group.
VARDHMAN SPINNING AND GENERAL MILL

Steel
The Group is also present in upper-end of the steel industry. The group has
manufacturing capacity of 100000 tons of special and alloy steel. The group
supplies its steel products to some of the most stringent quality steel buyers like
Maruti and Telco. It contributes 10 percent to the total turnover of the group.
.
Weaving
Continuing its owned march on the curve, vardhman group entered weaving
business in 1992 with a capacity of 7 million meter per annum.the capacity has
been subsequenently expanded to 25 million meters per annum.the group has
already made its mark as a quality producer of grey poplin/suiting in the home
market and has also entered the highly competitive export market within this
short span,now exporting fairly large volume of its production.

VARDHMAN SPINNING AND GENERAL MILL

HOLDINGS

1. Vardhman Holding Limited


2. Vardhman Textiles Limited
3. Vardhman Acrylic Limited
4. VMT Spinning Company Limited
5. Vardhman Yarns and Threads Limited

VARDHMAN SPINNING AND GENERAL MILL

PHILOSOPHY

VARDHMAN SPINNING AND GENERAL MILL

PRODUCT PORTFOLIO

Actual 2008-09 Group Total(


Rs crore)

USD
Million

% Share

VARDHMAN SPINNING AND GENERAL MILL

Yarn

1513

329

47%

Febric

689

150

22%

Sewing
Thread

337

73

11%

Steel

327

71

10%

66

14

2%

Fibre

254

55

8%

Total

3186

693

100%

Power plant

VARDHMAN SPINNING AND GENERAL MILL

MARKET PERFORMANCE
During the last 5 years, Vardhman Group has recorded 10 percent top line
growth rate, which is higher than the industry average growth rate. The Group
turnover has grown from Rs 723 crores in 1995 to Rs 3186.32 crores (about USD
700 million) in 2008-09. The exports has grown from negligible level in early
nineties to Rs 689 crores (USD 150 million) in 2008-09.

Financial Indicators Of Vardhman Group (Rs. In Crores)

Particulars

Group

Group

Group

Group

Group

2008-09 2007-08 2006-07 2005-06 2004-2005

Gross Sales

3186.32 2692.93 2454.00 2210.27 2219.34

Fob Value Of Exports

688.67

495.73

482.93

402.67

445.81

Profit Before Tax

137.41

204.80

264.73

259.53

190.62

Cash Accrual (PBT + Dep.)

380.79

376.74

398.32

377.33

305.26

Gross Block

3935.47 3460.86 2467.71 2079.37 1802.54

Net Block

2571.33 2219.22 1386.84 1124.31 954.55

Capital Employed

4555.61 3917.86 3181.18 2438.86 1817.96

VARDHMAN SPINNING AND GENERAL MILL

Financial Indicators Of Vardhman Group (USD In Millions)


Particulars

Group

Group

Group

Group

Group

2008-09 2007-08 2006-07 2005-06 2004-2005

Gross Sales

692.68

656.81

543.64

498.93

493.96

Fob Value Of Exports

149.71

120.91

106.99

90.90

99.22

Profit Before Tax

29.87

49.95

58.65

58.58

42.43

Cash Accrual (PBT + Dep.)

82.78

91.89

88.24

85.18

67.94

Gross Block

855.54

844.11

546.68

469.38

401.19

Net Block

558.98

541.27

307.23

253.79

212.45

SCapital Employed

990.35

955.58

704.74

550.53

404.62

MARKET POSITION OF VARDHMAN GROUP


Largest installed capacity of 5, 00,000 spindles in India.

VARDHMAN SPINNING AND GENERAL MILL

First Indian Textiles Company to get ISO-9002 and ISO-14002


certificate.
Largest manufacturing exporter of cotton yarn in the country.
Exports to high quality conscious like Japan, Hong Kong, Germany
UK and Switzerland.
Largest producer of hosiery yarns.
Largest producer of hand knitting yarns.
Second largest producer of sewing threads in the country.
Largest range of textiles products.
Largest spinning capacity in India.
Largest dyeing capacity of fibre and yarns.
Market leader in hand knitting yarns in India.
Collaboration with specialist worldwide.
ERP (Enterprise Resource Planning) enabled solution for online.

Balance sheet

VARDHMAN SPINNING AND GENERAL MILL

Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
Sources of funds
Owner's fund
Equity share capital
Share application money
Preference share capital
Reserves & surplus

63.65
57.77
57.77
57.77
57.77
1,854.61 1,398.08 1,214.98 1,114.37 1,034.26

Loan funds
Secured loans
Unsecured loans
Total

2,765.46 2,226.70 2,123.87 2,123.75 1,460.62


66.55
394.10 369.45 267.49 263.65
4,750.27 4,076.65 3,766.07 3,563.37 2,816.29

Uses of funds
Fixed assets
Gross block
Less : revaluation reserve
Less : accumulated depreciation
Net block
Capital work-in-progress
Investments

3,682.18 3,571.02 3,355.48 3,096.50 2,108.66


1,556.52 1,388.63 1,173.61 1,074.28 930.75
2,125.66 2,182.39 2,181.88 2,022.22 1,177.91
140.65 40.63
58.78
327.60 540.72
352.65 280.48 334.98 79.29
68.75

Net current assets


Current assets, loans & advances 3,093.26 2,403.75 1,926.52 1,828.77 1,664.28
Less : current liabilities &
961.94 830.60 736.08 694.50 635.36
provisions
Total net current assets
2,131.32 1,573.14 1,190.43 1,134.27 1,028.92
Miscellaneous
expenses
not
written
Total
4,750.27 4,076.65 3,766.07 3,563.37 2,816.29
Notes:
Book
value
of
unquoted
187.09
investments
Market
value
of
quoted 178.89

216.95

282.14

24.67

24.67

76.52

24.17

37.60

26.71

VARDHMAN SPINNING AND GENERAL MILL

Mar ' 11 Mar ' 10 Mar ' 09 Mar ' 08 Mar ' 07
investments
Contingent liabilities
Number
of
sharesoutstanding (Lacs)

equity

539.66

26.13

237.51

215.03

486.82

636.52

577.70

577.70

577.70

577.70

AWARDS AND ACHIEVEMENTS


It's an overwhelming feeling when the efforts and hard work put in are recognized
and felicitated. A feeling that galvanizes the Group into believing in more, in itself
and reaffirming its commitment to offer products that invoke trust and reliability.
Back home, the Vardhman Group became India's first textile company to be
awarded ICO9002/ ISO 14002 Certification. It is the largest producer and
exporter of yarns and Grey woven fabrics from India. Vardhman is also the
largest producer of tyercord yarns and the second largest producer of sewing
threads in India.

Textile Export Promotion Council 2007-08


Special Achievement Award in Yarn Category

Textile
Export
Promotion
Silver Top Exporter Award in Yarn Category

Council

2007-08

Textile

Council

2007-08

Export

Promotion

VARDHMAN SPINNING AND GENERAL MILL

Bronze Trophy in Processed Yarn Category

Textile
Export
Promotion
World Trophy in highest export in Yarn Category

Council

2005-06

Textile
Export
Promotion
Council
Bronze Trophy for Highest Global Export Category (Overall)

2005-06

Textile
Export
Promotion
World Trophy in highest export in Yarn Category

Council

2004-05

Textile
Export
Promotion
Council
Silver Trophy for Highest Global Export Category (Overall)

2004-05

Textile
Export
Promotion
Gold trophy in EOU/EPZ for export of cotton yarn

2003-04

Council

VARDHMAN SPINNING AND GENERAL MILL

Textile
Export
Promotion
Bronze trophy in mill fabric exporter category

Council

2003-04

Textile
Export
Promotion
Gold Trophy in EOU/EPZ for export of cotton yarn

Council

2002-03

Textile
Silver Trophy

Export

Promotion

Council

1998-99

Textile
Export
Bronze Trophy

Promotion

Council

1997-98

Textile
Silver Trophy

Promotion

Council

1996-97

1994-5,

1995-96

Export

Govt.
of
Award of Merit

India

Award

VARDHMAN SPINNING AND GENERAL MILL

Textile
Export
(Merchant
Export
Bronze Trophy

Promotion
Category

Council
for

1993-94
Fabrics)

Textile
(Merchant
Gold Trophy

Promotion
Category

Council
for

1993-94
Fabrics)

Export
Export

Textile
Export
Gold Trophy

Promotion

Council

1990-00

VARDHMAN SPINNING AND GENERAL MILL

Vardhman got PADMA BHUSHAN Award on


31st March,2010

VARDHMAN SPINNING AND GENERAL MILL

YEARS OF ESTABLISHMENT
1965-Vardhman Spinning and General Mills deals with Wool and it is in
Ludhiana.

1991- Auro Spinning Manufacturing Yarn and is leading Domestic and


International Market.

1993- Artist Spinning Mills Procedure Yarn and has 50000 spindles.

1994- Auro Dyeing Dyeing Fibre and Yarn.

1995-VTL Vardhman Thread Limited.

1996- VMT Vardhman Marubem Tohravon.

1997-VSGM

1999- Auto Textile Production Started in September 1999 in collaboration


with Tokai, Japan.

2007- Vardhman Yarn Satlapur MP

2007- Vardhman Fabric Budhni MP.


VARDHMAN SPINNING AND GENERAL MILL

FOREIGN COLLABORATION

Garments
Nisshinbo Textiles inc. Japan
Fabrics Dyeing & Fininshing
Tokai Senko, Japan
Fiber & Yarn Dyeing
Nihon Sanmo Dyeing Co. Ltd., Japan
Gassed Mercerized Yarns
Kiyung Bang South Korea
Cotton Yarn
Toho Rayon, Japan
Sewing Thread
American & Efird Inc., USA
Acrylic Fibre
Manubeni corp ,and Japan Exlan Of Japan

VARDHMAN SPINNING AND GENERAL MILL

INTRODUCTION TO FINANCE DEPARTMENT


In Vardhman Spinning & General Mills, Finance Department is headed by
Mr. Munish Jain (Assistant Manager). All the working of finance
department is done through ERP (Enterprise Resource Planning) system,
which is installed in August 2003.
Every company is required to maintain proper books of account to record
all the transactions in the course of its business operations. It is necessary
that the transactions should be properly accounted for in the books of
account so that they give a true and fair view of the state of affair of
business.
Accounting records only monetary transactions. Events or transactions,
which cannot be expressed in money, do not find place in the books of
account though they may be very useful for the business.
The life of business is divided in to appropriate segments for studying the
results shown by the business after each segment. In accounting such a
segment or time interval is called accounting period it is usually of a year
started from April and ended on March.
At the end of each accounting period an income statement and balance
sheet are prepared. The income statement discloses the profit & loss
made by business during the accounting period while the balance sheet
depicts the financial position of the business as on the last day of
accounting period. while preparing these statements a proper distinction
has to made between capital expenditure and revenue expenditure. The
accounting statements help the management in making rational decisions.

VARDHMAN SPINNING AND GENERAL MILL

NEED FOR FINANCE DEPARTMENT


Economic activities are those, which includes buying and selling of goods
and services for the purpose of profits. These activities are related to
business, the main objective is to earn profit. This exchange is termed as
transaction means transfer from one person to another in money or
money worth. Hence, exchange of money, goods and services between
persons of parties is known as to have resulted in transaction. In each
organization transaction are affected. The goods are purchased from one
market at a certain rate and then these are sold in another market at
higher price. Sometimes these goods are sold at low price due to any
reasons. It means organization generally earn profit but in any of the case
loss. It happens due to incurring of the business, a particular system is
required. In order to achieve the purpose of recording the well-devised
system, finance department plays a dominant role in an organization.
Finance department deals with the ACP (Super Related Accounting) and
ACR (Customer Related Accounting) and EXIM section.

MEMBER IN FINANCE DEPARTMENT

VARDHMAN SPINNING AND GENERAL MILL

MUNISH JAIN (FINANCE MANAGER)

OM PARKASH (STAFF)

CHANDER MOHAN SHARMA (STAFF)

JYOTI DULYI (STAFF)

SANJEEV (STAFF)

PRIYANKA (STAFF)

RESPONSIBILITIES OF ACCOUNTS DEPARTMENT


Accounting for purchase of stores and spares.
VARDHMAN SPINNING AND GENERAL MILL

Accounting for civil & services contractors.


Fixed assets accounting.
Filling of TDS and TCS returns.
Issuance of TDS & TCS certificates.
Calculation/ deduction of TDS on salary.
Accounting for Public Deposit.
Insurance accounting.
Accounting for collection from waste/ scraps customers.
Preparing & filling of Sales Tax Returns/ VAT return.
Sales Tax Assessments.
Advance License & DEPB Purchase Accounting.
Cash Payment.
Inter unit/ Inter Company Accounting.
Ledger Scrutiny.
Monthly Profit & loss Accounts & Balance Sheet.
Annual Profit & Loss accounts & balance sheet.

8 SECRETS OF SUCCESS OF VSGM

VARDHMAN SPINNING AND GENERAL MILL

There are hundreds of business books and of journals magazines published


every year on successful business operations. There are 8 secrets of success of
Vardhman Spinning & General Mills. These are:
Not solely for money:First secret is that successful companies are not in business
solely for money.Henry Ford remarked that a company,
which only makes money, is no sort of company.
Culture:Strong culture, faster than, friendly and goal oriented.
Customer:Try to understand the customers; what customer actually
wants that is understand by Vardhman. Not vague idea,
need aspiration and behavior.
What is business:They know what is important and this is reflected in their
insulation of their employees.
Communication:Successful companies are persistent and powerful
communicator. People keep information and bright idea to
themselves or communicate with a select few one.
Simplicity:Not a secret at all, keep with faith in simple practice and
principles in the presence of the chosen few.
Leadership:Leaders in sense overall activities he control ability and skill.
Results:-Make profit but make customers delights

5 S CONSIDER IN VRADHMAN
VARDHMAN SPINNING AND GENERAL MILL

Sort(SIERI):Objective: - To get rid of unwanted items.


Key Technique: - Red Tagging
Set location and Limits(SEITON):Objective: - To locate a specific place for specific items of a
specific quantity, where needed.
Shine and Sweep(SEISO):Objective: - To use cleaning to identity abnormalities and
area of improvement.
Key technique: - visual and physical sweeping using
cleaning as checking.
Standardize ( SHITSULE):Objective:- To sustain improvements and make further
improvements by encouraging effective use of plan, do ,act
and check(PADAC) cycle.
Key technique: - Red Tagging
1. Auditing
2. Reward, recognition and training programs.

TOTAL PRODUCTIVITY MAINTAINENCE POLICY


VARDHMAN SPINNING AND GENERAL MILL

(TPM)
MEANING:T (TOTAL):- All encompassing by maintenance and production individuals
working together.
P (PRODUCTIVITY):- Productivity of goods and services that meet or
exceed customers expectation.
M (MAINTENANCE):- keeping equipment and plant as good as or better
than the original condition at all times.
POLICY:-Maximum overall effectiveness reliability of plant and machinery
by aiming at ZERO LOSSES and ZERO ACCIDENT through nurturing
team work and continuous development of all employees.

Overall Goals of TPM are: Maintaining Equipment


Using support for all areas of employees.
Encouraging input from all the employees.
Using team for continuous improvement.

SWOT ANALYSIS
VARDHMAN SPINNING AND GENERAL MILL

STRENGTHS: Good brand equity.


Good technological base with foreign collaboration.
High quality standards.
High production capacity.
Own research and development department.
Reliable human capital.
Commitment for growth..
Vardhman groups culture and philosophy.

WEAKNESS: Comparatively higher price.


Lesser degree of promotional activities.
Long hierarchy.

OPPORTUNITIES: As quality is good and prices are comparatively high, vardhman


can always easily liquidate stock pressure by slight reduction.
As brand image is very good and production is too wide,
vardhman.
THREATS: Smaller players in the market are using Vardhmans prices as
shield to push their product at lower prices.
Companies from south are entering into Ludhiana market.

VARDHMAN SPINNING AND GENERAL MILL

INTRODUCTION OF THE PROJECT


VARDHMAN SPINNING AND GENERAL MILL

RESEARCH METHODOLOGY:Research methodology is a way to systematically solve the research problem. It


may be understood as a science of studying how research is done scientifically.
In it we study the various steps that are generally adopted by a researcher in
studying his research problem along with the logic behind them.
All this means that it is necessary for the researcher to design his
methodology for his problem as the same may differ from problem to problem.

INTRODUCTION OF THE PROJECT


This project of E-TDS, E-TCS & accounting procedure was assigned to me by
vardhman during my training in the company. As an essential part of our MBA
program, I got the privilege to have the training with Vrdhman Spinning and
general mill Ltd, Ludhiana.
One cannot merely rely upon the theoretical knowledge, if
the theoretical knowledge is accompanied by practical one, the benefits are
maximized. Lectures given in the classroom help us to understand the
fundamental concepts of management and also facilitate the learning of practical
things. However, these lectures must be correlated with the practical situation. it
is in the sense that the practical training in the company has a significant role in
the subject of business management.

VARDHMAN SPINNING AND GENERAL MILL

GENERAL OVERVIEW
Deductor other than Government & corporate may file TDS return in electronic or
physical form & for corporate/Govt. deductor it is mandatory to file TDS return in
electronic
form
i.e
ETDS.
As filing of TDS/TCS returns in electronic form (e-TDS/TCS) is a new concept, to
assist deductors/ collectors prepare and file their e-TDS/TCS returns, NSDL has
published the Deductors Manual
E-TDS
Entities (both corporate and non-corporate deductors) making payments
(specified under Income Tax Act) to third parties (deductees) are required to
deduct tax at source (Tax Deducted at Source -TDS) from these payments and
deposit the same at any of the designated branches of banks authorised to
collect taxes on behalf of Government of India. They should also furnish TDS
returns containing details of deductee(s) and challan details relating to deposit of
tax to ITD.
As a part of automation of collection, compilation and processing of TDS returns
ITD has notified an "Electronic Filing of Returns of Tax Deducted at Source
Scheme, 2003". It is applicable to all deductors furnishing their TDS return in
electronic form. As per this scheme:
It is mandatory (w.e.f. June 1, 2003) for corporate deductors to furnish
their TDS returns in electronic form (e-TDS return).
From F.Y. 2004-2005 onwards furnishing TDS returns in electronic form
is also mandatory for government deductors in addition to corporate
deductors.
Deductors (other than government and corporates) may file TDS return
in electronic or physical form.
National Securities Depository Ltd. (NSDL) as the e- TDS Intermediary
(appointed by ITD) receives, on behalf of ITD, the e-TDS returns from
the deductors.
WHY IS TDS APPLICABLE?
To avoid case of tax evasion, the income tax act has made provision to
collect tax at source on accrual of income.
It is imposed in order to raise revenue.
VARDHMAN SPINNING AND GENERAL MILL

To wave off the heavy burden of the tax payers the government of india
has introduced-TAX DEDUCTION AT SOURCE.

CHARGES FOR FILING ETDS


Maximum fee payable per e-TDS/e-TCS return accepted:
Category of e-TDS/TCS return

Upload charges*

Upto 100 deductee records

Rs.25/-

101 to 1000 deductee records

Rs.150/-

More than 1000 deductee records

Rs.500/-

*exclusive of service tax

VARDHMAN SPINNING AND GENERAL MILL

PROCEDURE FOR E-FILING OF TDS RETURNS


1. Objective:
The basic objectives of computerization of TDS returns is to cut down the
compliance cost for deductors, to correlate deduction of taxes made by
deductors
with the deposit of the deducted tax in the Government account in a designated
bank/and correlate deduction of tax by the deductors with the corresponding
credits claimed by the deductees.
In phase-I of TIN it is proposed to receive the electronic TDS returns of corporate
deductors and to digitise the paper TDS returns of other deductors.
In Phase-II of TIN the work relating to dematerialization of TDS certificates will
be taken up so that cross verification of deduction by the Deductors with the
claims of deductees can be carried out. Some of the issues pertaining to this
scheme are explained in the form of Frequently Asked Questions (FAQs) and are
available on this site.
2. Scheme for Electronic Filing of TDS returns:
The scheme for electronic filing of TDS returns was notified on 26.8.2003.
The
Board Circular No.8 dated 19.9.2003 clarifies the procedure in this regard. The
procedure basically envisages that corporate deductors will prepare their TDS
returns in the new TDS return Forms 24, 26 or 27, according to the data
structure
notified by e-Filing Administrator. The e-TDS returns in the prescribed data
structure stored on CD ROM and supported by a duly signed control chart in
Form
27A in paper format will be submitted to an e-TDS Intermediary appointed by
the Board .
3. E -TDS Administrator and e-TDS Intermediary:
The CBDT has appointed Director General of Income-tax (Systems) as e-TDS
Administrator. Separately, M/s National Securities Depository Limited (NSDL),
who are also the agency hosting TIN, have been appointed as e-TDS
Intermediary.
During the current financial year, NSDL will be opening their front offices at 42
stations throughout the country, for receiving e-TDS returns of all deductors.
VARDHMAN SPINNING AND GENERAL MILL

NSDL w.e.f. 19.01.2004 will set up their front offices called as TIN Facilitation
Centre at 42 stations throughout the country, for receiving e-TDS returns w.e.f.
19.01.2004. NSDL will set up their front offices at 65 stations more during the
next financial year so that they will have presence at all stations where
administrative CsIT are located.
Procedure for allotment of TAN:
4.1 All deductors required to e-file their TDS returns have to quote their
reformatted Tax Deduction Account Numbers (TAN) in their respective TDS
returns. A large number of deductors have already obtained these re -formatted
TANs which are unique countrywide. Wherever TAN has not been allotted or old
TANs have not been reformatted, applications in Form 49B can be filed with
NSDL. All old applications for allotment of new TAN/ reformatted TAN pending
in the Department, will be disposed at the earliest.
4.2 NSDL has also been authorised to receive applications (form 49B)for
allotment of TAN at their front offices for fee of Rs.50/- to be paid by the
applicant to them. The data in respect o f such TAN applications will be entered
by
NSDL and sent to National Computer Centre (NCC) of Income-tax Department
and the respective computer centres on-line . The allotment of TAN will be done
by the IT department centres and communicated online to NSDL who will
intimate the same to the applicant.
5. Preparation of e-TDS returns:
5.1 New forms of TDS returns in Form No.24, 26, & 27 (enclosed herewith), a
control chart in Form 27A have been notified by the Board vide notification
dated
31.7.2003 consequent upon amendment to Rule 30 of IT Rules, 1962. The eTDS
returns have to be prepared in these new forms and according to the data
structure prescribed by e-TDS administrator. This is necessary so that the data
structure of e-TDS returns is compatible with the departmental application
software for processing the same.
5.2 The prescribed data structure can be downloaded from this website as also
of
NSDL (http://tin.nsdl.com) This can also be obtained from the front offices of
NSDL. While preparing the e-TDS returns, the deductor has to ensure that
following mandatory requirements listed in Circular No.8 of CBDT dated
19.9.2003, are complied with :
(i) Tax deduction Account Number (TAN) of the deductor is clearly
mentioned in the TDS return as also on Form No.27A, as required by
sub-section (2) of section 203A of the Income-tax Act. However, in
VARDHMAN SPINNING AND GENERAL MILL

cases where TAN is not available the e-TDS returns will also be
accepted if the same is accompanied with an application inForm 49B
for allotment or for reformatting.
(ii) Full particulars relating to deposit of tax deducted at source, in the
designated bank are correctly and properly filled in the table at item
No.6 of Form No.24 or item No.5 of Form No.26 or item No.5 of
Form No.27, as the case may be.
(iii) The data in the e-TDS return is as per the data structure prescribed
by the e-Filing Administrator.
(iv) The Control Chart in Form 27A is duly filled in all columns, signed
and enclosed in paper form with the return on computer media.
(v) The Control Totals of the amount paid and the tax deducted at source
as mentioned at item No.3 of Form No. 27A tally with the
corresponding totals in the e-TDS return in Form No. 24 or Form
No. 26 or Form No. 27, as the case may be.
In case any of these mandatory requirements are not fulfilled, the e -TDS return
will not be received by the -TDS intermediary.
5.3 The deductors should prepare their e-TDS return as per the above
procedure,
store the data on a CD ROM, enclose the control chart (Form 27A in paper
format) and submit these at any of the front offices of NSDL. Although the
scheme permits e-TDS returns to be prepared on a floppy, it would be preferable
that these are prepared on a CD ROM to avoid any loss of data, viruses etc.
6. Filing of e-TDS returns:
6.1 The e-TDS return can be filed at any of the TIC Facilitaion Centres offices
being opened by NSDL at 42 cities. At the receipt stage, these front offices will
carryout validation checks on the e -TDS returns to ensure compliance with
above
five parameters, and a provisional receipt will be issued on successful validation.
6.2 Section 139A(5 B) requires that PAN of the deductees should be mentioned
in
the TDS returns. Wherever PAN of deductees is not mentioned by a deductor in
his e-TDS return, this fact will be recorded on the provisional receipt as
deficiency, to be removed by the deductor. However, in such cases, NSDL will
accept the e -TDS returns. The deficiency can be removed by the deductor within
7
days, failing which the e-TDS returns will be sent by NSDL to the Department
indicating the deficiency therein for appropriate action by the concerned A.O.
7. Upload Charges:
Since e-filing of TDS returns will reduce the voluminous paper work involved in
filing of paper TDS returns and enclosures thereby significantly reducing the
VARDHMAN SPINNING AND GENERAL MILL

compliance cost of deductors, the e -intermediary i.e. NSDL have been


authorised
to collect service charges in respect of the various services being rendered by
them
to the deductors for upload of e-TDS returns at the following rates:
Category of e-TDS return Upload charges
Returns having records of up to 100 deductee records Rs.25/Returns having records of 101 to 1000 deductee records Rs. 150/Returns having records of more than 1000 deductee records Rs.500/Service tax if any will be payable by deductors in addition to the
above.

VARDHMAN SPINNING AND GENERAL MILL

Software available for preparation of e-TDS/TCS return


NSDL has made available a freely downloadable return preparation utility for
preparation of e-TDS/TCS returns. Additionally, you can develop your own
software for this purpose or you may acquire software from various third party
vendors. A list of vendor are following:
Name of the Company

Name of the Product

National Securities Depository Ltd.


(NSDL)

NSDL e-TDS/TCSRPU

Chartered Information Systems Pvt. Ltd

TaxPro e-TDS

Cnergies

Tax-Bridge Module eTDS

Compaccax (India) Private Limited

ITRET TDS

FAM Info Systems

EasyETDS

Fast Facts Computer Systems Ltd

e-TDS Wizard

Fortune Informatics Limited

eTaxfile

K. D. K. Softwares (India) Pvt. Ltd

Zen TDS

KEYPRO PLUS

KeTDS

Lakecity Web Private Limited

E-TDS Utility

Mashbra Industries Pvt.Ltd.

Software on E-TDS with automatic


calculation

MCS Computer Services Pvt. Ltd.

VTDS_05 (VER 2.0.0)

MDA Softwares Limited

FastTDS / FastTCS

Milestone

TDS Solutions

VARDHMAN SPINNING AND GENERAL MILL

NAS Software Consultants Pvt Ltd

NAS e-TDS

STAGES OF TAX DEDUCTION SOURCE

TAX-PAYER
TAX-PAYER

PERSON LIABLE TO PAY


TAX

GOVERNMENT

VARDHMAN SPINNING AND GENERAL MILL

FORMS TO BE USED FOR FILLING ANNUAL/QUARTERLY


TDS/TCS RETURN

Form
No.

Particulars

Form No. Annual return of 'Salaries' under Section 206 of Income


24
Tax Act, 1961

Periodici
ty
Annual

Form No. Annual return of deduction of tax under section 206 of


Annual
26
Income Tax Act, 1961 in respect of all payments other than
'Salaries'
Form No. Statement of deduction of tax from interest, dividend or any Quarterly
27
other sum payable to certain persons
Form No. Annual return of collection of tax under section 206C of
27E
Income Tax Act, 1961

Annual

Form No. Quarterly statement for tax deducted at source from


24Q
'Salaries'

Quarterly

Form No. Quarterly statement of tax deducted at source in respect of Quarterly


26Q
all payments other than 'Salaries'
Form No. Quarterly statement of deduction of tax from interest,
27Q
dividend or any other sum payable to non-residents

Quarterly

Form No. Quarterly statement of collection of tax at source


27EQ

Quarterly

VARDHMAN SPINNING AND GENERAL MILL

5 steps to e-TDS/e-TCS return

1. The data structure (file format) in which the e-TDS / e-TCS return is to be
prepared has been notified below:
(a) Annual e-TDS return:
o File Format for Form 24
o File Format for Form 26
o File Format for Form 27
(b) Annual e-TCS return:
o File Format for Form 27E
(c) Quarterly return:
o File Format for Form 24Q
o File Format for Form 26Q
o File Format for Form 27Q
o File Format for Form 27EQ
Data structure for Form 24Q of the quarter ending 31-March
2. e-TDS/e-TCS return in accordance with the file formats is to be prepared
in clean text ASCII format with 'txt' as filename extension. e-TDS/e-TCS
return can be prepared using in-house software, any other third party
software or the NSDL e-TDS Return Preparation Utility (e-TDS RPULight).
Feedback Form
3. Sample files prepared as per the file formats given below for reference.
4. Annual Return:
VARDHMAN SPINNING AND GENERAL MILL

o Sample file of e-TDS return - Form 24


o Sample file of e-TDS return - Form 26
o Sample file of e-TDS return - Form 27
+
Quarterly Return:
o Sample file for Form 24Q
o Sample file for Form 26Q
o Sample file for Form 27Q
o Sample file for Form 27EQ
5. Once the file has been prepared as per the file format, it should be verified
using the File Validation Utility (FVU) provided by NSDL.
* FVU for Annual Returns: e-TDS / e-TCS returns prepared for FY 2004-05
(Forms 24, 26, 27 and 27E) can be validated using this utility.
* FVU for Quarterly Returns: e-TDS / e-TCS returns prepared for FY 200506 and onwards (i.e. Forms 24Q, 26Q, 27Q and 27EQ) can be validated
using this utility.
6. In case file has any errors the FVU will give a report of the errors. Rectify
the errors and verify the file again through the FVU.
7. The upload file generated by the FVU on successful validation is to be
furnished to a TIN-FC or directly uploaded through the NSDL web-site.
Annual Returns:
Each e-TDS return saved in a CD/Pen Drive to be submitted along with a
signed copy of the control chart (Form 27A).
Each e-TCS return saved in a CD/Pen Drive to be submitted along with a
signed copy of the control chart (Form 27B).

VARDHMAN SPINNING AND GENERAL MILL

Quarterly Returns:
Each e-TDS/TCS return saved in a CD/Pen Drive to be submitted along
with a signed copy of the control chart (Form 27A).

FORM NO 27 A
Form No. 27A is a control chart of quarterly e-TDS/TCS statements to be filed in
paper form by deductors/collectors alongwith quarterly statements. It is a
summary of e-TDS/TCS returns which contains control totals of 'amount paid'
and 'income tax deducted at source'. The control totals of 'amount paid' and
'income tax deducted at source' mentioned on Form No. 27A should match with
the corresponding control totals in e-TDS/TCS return. A separate Form No. 27A
is to be filed for each e-TDS/TCS return.
In case of Annual Returns the relevant control charts are Form 27A for e-TDS
and Form 27B for e-TCS.
The Precautions to be taken while submitting Form No. 27A/B
While submitting Form No. 27A/B, one should ensure that:
a) There is no overwriting/striking on Form No. 27A/B. If there is any, then the
same should be ratified (signed) by the authorised signatory.
b) Name and TAN of deductor and control totals of 'amount paid' and 'income
tax deducted at source' mentioned on Form No. 27A/B should match with the
respective totals in the e-TDS/TCS return.
c) All the fields of Form No. 27A/B are duly filled.
Data structure (file format) for preparing e-TDS/TCS return
VARDHMAN SPINNING AND GENERAL MILL

e-TDS/TCS return should be prepared in accordance with the data structure (File
Format) prescribed by the e-filing administrator. Separate data structure has
been prescribed for each type of form whether it is annual return (up to FY 200405) or Quarterly return (FY 2005-06 onwards).
Challan Serial Number given by the Bank
Bank Challan Number is a receipt number given by the bank branch where TDS
is deposited. A separate receipt number is given for each challan deposited. You
are required to mention this challan number in the e-TDS/TCS return and not the
preprinted numbers on the bank challan form i.e. ITNS 269 or ITNS 271.
Bank Branch Code
Reserve Bank of India has allotted a unique seven-digit code to each bank
branch. You are required to mention the code of the bank branch where TDS is
deposited in the e-TDS/TCS return. You can get this code from the bank branch
where TDS amount is deposited.
If E-TDS/TCS return does not contain PANs of all deductees?
In case PANs of some of the deductees are not mentioned in the e-TDS/TCS
return, the Provisional Receipt will mention the count of missing PANs in the eTDS/TCS return. The details of missing PANs (to the extent it can be collected
from the deductees) may be filed within seven days of the date of Provisional
Receipt to TIN-FC. e-TDS/TCS return will be accepted even with missing PANs.
However, if PAN of deductees is not given in the TDS return, tax deducted from
payment made to him cannot be posted to the statement of TDS to be issued to
him u/s 203AA.
Verification of E-TDS/TCS return
After prepared E-TDS/TCS return y6ou can check /verify the same by using the
file validation utility(FVU).This utility is freely downloadable from the NSDL-TIN
websites.
File Validation Utility (FVU)
FVU is program developed by NSDL, whichis used to ascertain whether the ETDS/TCS return files contains any format level errors. When you pass ETDS/TCS return through FVU, it generates an error/response file. If there are no
errors in the E-TDS/TCS return file error/response file will display the control
totals. If there are error, the error/response filewill display the error location and
VARDHMAN SPINNING AND GENERAL MILL

error code along with the error code description. In case you find any error, you
can rectify the error and pass the E-TDS/TCS return file again through FVU till
you get an error-free file.
Upload file in the new File Validation Utility (FVU)
Earlier the E-TDS/TCS return file after validating using file validation utility(FVU)
had to be filed with TIN-FC.now Upload File that is generated by the FVU when
the returnis validated using the FVU has to b filed with TIN-FC. This Upload File
is a file with the same filename
as the Input file but with
extension.fvu.ExampleInput file name is 27EQgov.txt, the upload file generated
will be 27EQgov..fvu.

Furnishing of TDS/TCS return satetment


(A) TDS/TCS returns at any of the TIN-FCs managed by NSDL.TIN-FCs are set
up at specified locations across the country. details are given in the NSDL-TIN
website.
The basic details that should be included in the of e-TDS/TCS return
Following information must be included in the e-TDS/TCS return for successful
acceptance. If any of these essential details is missing, the returns will not be
accepted at the TIN-FCs:
1. Correct Tax-deduction/collection Account Number (TAN) of the
deductor/collector should be clearly mentioned in Form No. 27A as also in
the e-TDS/TCS return, as required by sub-section (2) of section 203A of
the Income-tax Act.
2. The particulars relating to deposit of tax deducted at source in the bank
should be correctly and properly filled.
3. The data structure of the e-TDS/TCS return should be as per the structure
prescribed by the e-Filing Administrator.
4. The Control Chart in Form No. 27A (enclosed in paper form with the eTDS/TCS return on CD/Pen Drive ) should be duly filled and signed.
VARDHMAN SPINNING AND GENERAL MILL

Is the procedure for filing of e-TCS different from that of filing e-TDS
return?
The procedure for filing of e-TCS return is the same as that of e-TDS return
except the forms to be used is different. The relevant forms for filing the e-TCS
return
are:
a)
Annual
return:
Form
No.
27E,
27B
(Control
Chart)
b) Quarterly statement: Form No 27EQ, 27A (Control Chart).

The e-TCS returns are also to be filed with NSDL at the various TIN-FCS.
Charges for filling E-TDS/E-TCS return with TIN-FCs
No. of deductee records in e-TDS/TCS Upload charges
return
service tax)
Returns having up to 100 records

30

Returns having 101 to 1000 records

182

Returns having more than 1000 records

606

(inclusive

of

The due dates for filing quarterly TDS returns, both electronic and paper are as
under:

Quarter

Due Date for Form Due

Date

for Due

Date

VARDHMAN SPINNING AND GENERAL MILL

for

April to June

Nos. 24Q & 26Q

Form No. 27Q

Form No. 27EQ

15 July

15 July

15 July

July
September

to 15 October

15 October

15 October

October
December

to 15 January

15 January

15 January

January
March

to 15 May

15 May

15 May

TDS PROVISIONS IN BRIEF W.E.F 01/07/2010

S.N
O

NATURE OF PAYMENT

1.

SECTION -194A

LIMIT

INTEREST OTHER THAN INTEREST ON SECURITIES

TDS
RATE

5000/P.A

IF RECIPIENT IS A RESIDENT OTHER THAN


COMPANY

IF RECIPIENT IS A DOMESTIC COMPANY


2.

SECTION -194B

VARDHMAN SPINNING AND GENERAL MILL

10%

10%

WINNING FROM LOTTERY OR CROSSWORD 10,000/PUZZLE CARD GAME OR OTHERGAME OF ANY P.A
SORT TO A RESIDENT/NON-RESIDENT
3.

30%

SECTION-194C
PAYMENT TO ARESIDENT
CONTRACTORS

CONTRACTORS/SUB NOT
EXCEED

A) INDIVIDUAL/HUF CONTRACTORS

B) OTHER
THAEN
CONTRACTORS
C) INDIVIDUAL/HUF
ADVERTISING

30,000/P.A

INDIVIDUAL/HUF OR

CONTRACTORS

FOR 75,000/P.A

D) CONTRACTORS IN TRANSPORT BUSINESS

1%

2%

1%

2%

*THE NIL 5RATE WILL BE APPLICABLE IF THE


TRANSPORTER QUOTE HIS PAN
1) IF PAN IS NOT QUOTED THE RATE WILL BE
CHARGED 1% FROM INDIVIDUAL AND 2%
FROM
OTHERS
W.E.F
01/10/2009
TO
31/03/2010
2) IF PAN NOT QUOTED THE RATE OF TDS WILL
BE CHARGED 20% W.E.F. 01/04/2010
4.

SECTION-194H

COMMISSION OR BROKERAGE TO A RESIDENT FOR 5000/ALL


P.A
5.

SECTION-194I

VARDHMAN SPINNING AND GENERAL MILL

10%

RENT O A RESIDENT

6.

1,80,000/
-P.A

1) RENT FOR USE OF PLANT,MACHINERY OR


EQUIPMENT

2%

2) RENT FOR USE OF LAND,BUILDING OR


FURNITURE LOAN

10%

SECTION-194J
FEES FOR PROFESSIONALS/TECH SERVICES

30,000/P.A

FOR ALL

10%

PREPARATION & FILLING OF E-TDS RETURN IS DIVIDED INTO 3


PARTS

VARDHMAN SPINNING AND GENERAL MILL

Prepration of E-TDS/TCS return


E-TDS/TCS return has to be prepared in the data format issued by e-Filing
Administrator. This is availableBILL
on the Income Tax Department website
(www.incometaxindia.gov.in) and NSDL-TIN website (www.tin-nsdl.com). There is
a validation software (File Validation
Utility) available along with the data
BOOKING
structure which should be used to validate the data structure of the e-TDS/TCS
return prepared. The e-TDS/TCS return should have following features:
(a) Each e-TDS/TCS return file should be in a separate CD/floppy.
(b) Each e-TDS/TCS return file should be accompanied by a duly filled and
signed (by an authorised signatory) Form No. 27A in physical form.
(c) Each e-TDS/TCS return file should be in one CD/floppy. It should not span
across multiple floppies.
(d) In case the size of an e-TDS/TCS return file exceeds the capacity of one
floppy, it should be filed on a CD. E-TDS
RETURN

(e) If an e-TDS return file is required to be compressed, it should be compressed


using Winzip 8.1 or ZipItFast 3.0 compression utility (or higher version thereof) to
ensure quick and smooth acceptance of the file.
(f) Label should be affixed on each CD/floppy mentioning name of the deductor,
his TAN, Form no. (i.e. 24, 26 or 27) and period to which the return pertains.
(g) There should not be any overwriting/striking on Form No. 27A. If there is any,
thenPRINTING
the same should be ratified by an authorised signatory.
MAKING THE TDS
RETURN

OF bank
TDS challan or copy of TDS/TCS certificate should be filed alongwith e(h) No
TDS/TCS return file.
CERTIFICATES

(i) In case of Form Nos. 26 & 27, deductor need not file physical copies of
certificates of no deduction or lower deduction of TDS received from deductees.
(j) In case of Form 24, deductor should file physical copies of certificates of no
deduction or deduction of TDS at lower rate, if any, received from deductees.
However, there is no such requirement in case of Form 24Q.
(k) e-TDS/TCS return file should contain TAN of the deductor/collector without
which, the return will not be accepted.

VARDHMAN SPINNING AND GENERAL MILL

OJECTIVE OF THE STUDY


First main objective for this project report is to prepare the report for my
MBA training.
To study the working of E-TDS and E-TCS.
To know the procedure for filling the E-TDS and E-TCS return.
To know about the Annual and Quarterly returns of the E-TDS and E-TCS.
To study the sections comes under this aspect.
Also know the forms consider in this study.

VARDHMAN SPINNING AND GENERAL MILL

Research design and Metod of data collection


Research design
1. Area of the study: The area of study on the given project was vardhman
spinning and general mill,Ludhiana.A exploratory research design is
consider because all the study was done in vardhman company.
2. Time of schedule: The project was completed in the proposed time
period of six weeks the month of july and august.

Method Of Data Collection


1. Data collection Metod: This study includes the secondary data which
have been already available.
2. Data collection technique: Secondary data was collected by the
internet, books and past records of the company.
3. Data collection Instruments: Data was collected through observations
that can be unstructured.

Scope, Limitations & Importance of the study


VARDHMAN SPINNING AND GENERAL MILL

Scope of the study


As the study of E-TDS and E-TCS confined to vardhman spinning and general
mills.ludhiana.in this study we know about the govt. rules and implementations
thats comes under this concept. Through this we about the procedure for filling
the electronically returns of E-TDS and E-TCS.at last we can that there is a very
vast scope of this study.
Limitations of the study
Through carrying out the research study was a learning and enriching
experience,but I also facedsome constraints and limitations.
1. TDS and TCS is very vast topic,so consider the whole concept is very
difficult.
2. TDS consider many section, so cover each and every aspect in these
section is so difficult.
3. Our trainers not give us too much time because of busy schedule.
Importance of the study
Inspite of all these limitations, this study consider some importance also. These
are
1. First important is that to get the knowledge of E-TDS and E-TCS.
2. Through this we know about the returns of E-TDS and E-TCS and also
know that how to fill these returns

Suggestion and recommendation

VARDHMAN SPINNING AND GENERAL MILL

Vardhman spinning and general mill perform work properly according to their own
way .but my suggestion is that:Vardhman mill perform their all tax related work in EXCEL they most probable
use software for filling returns.
So my suggestion is that they use the software for filling TDS and TCS returns.
By this working of the company is develop.

Brief Summary
In this project gives the overview for E-TDS and E-TCS.
VARDHMAN SPINNING AND GENERAL MILL

E-TDS
Entities (both corporate and non-corporate deductors) making payments
(specified under income tax act) to third parties (deductees) are required to
deduct tax at source (Tax deducted at source-TDS) from these payments and
deposit the same at any of the designated branches of banks authorized to
collect taxes on behalf of government of india.They should also furnish TDS
returns containing details of deductees and challan details relating to deposit of
tax to ITD (Income tax department).
E-TCS
TCS means collection of tax at source by the seller (collector) from the buyer
(collectee/payee) Of the goods (specified u/s 206C of income tax act,1961,like
timber obtained under forest lease,scrap,aby other forest produce not being
timber or tendu leaves etc..)For e.g. if purchase value of goods is Rs.10, 000/-,
the buyer will pay an amount of Rs.10,000/-+X (X being the value as TCS as
prescribed under income tax act, 1961) to the seller. The seller will deposit the
tax collected at source (TCS) at any of the designated branches of the authorized
banks.

VARDHMAN SPINNING AND GENERAL MILL

Bibliography
All related matter to this project are collected through following:

www.vardhman.com
www.nsdl.com
Study the previous record and project.
Some concept taken from the Book DIRECT TAXES.
Also search related matter through INTERNET.
Vrdhman magazines and files

VARDHMAN SPINNING AND GENERAL MILL

VARDHMAN SPINNING AND GENERAL MILL

VARDHMAN SPINNING AND GENERAL MILL