TDS Catch - Expense Solution

Overview

In recent years, with the scope of reporting by tax administration increasingly growing wider, businesses find it challenging to bring their entire supply chain within the ambit of Tax Deducted at Source (TDS) provisions and manage the compliance and reporting requirements seamlessly. Businesses are facing challenges in tracking TDS on expenses owing to voluminous data, master data verification and tracking, financial risk management, and compliance & litigation management.

Digital governance is thus imperative to overcoming the challenge of tax teams, auditors and consultants not having adequate visibility on important areas such as tracking the status of compliances and instances of non-compliances, understanding the impact of non-compliances, etc.

Our TDS Catch – Expense Solution is designed to provide a seamless digitised process for the management of the entire journey of Withholding Tax – TDS / TCS compliance requirements. It has a validation engine to check TDS / TCS that should have been deducted vs what was actually deducted, thereby helping in the early assessment of risks on appropriate TDS deducted, management of quarterly TDS returns and reporting of Clause 34a of the Tax Audit Report.

How BDO UAE Can Help

Our solution provides a seamless digitised process for the management of monthly/ quarterly/ annual TDS compliance requirements. It helps in the early assessment of risks on account of non-compliance with TDS provisions under the Income-tax Act.

• Automation of Reconciliation Process

Our solution facilitates the reconciliation of general expense ledger with TDS/TCS returns.

• Data Processing and Validation

Master data management to assess the status of vendor/ customer under section 206AB/ 206CCA. Tracking validity of vendor/ customer documents.

• TDS & TCS Determination

Identifying the transactions liable to TDS/TCS and mapping the TDS/TCS rate based on the nature of expense and master data verification. Variance analysis between TDS & TCS determined by system and TDS/ TCS as per ERP and tracking of reasons for variance.

• Tracking and Monitoring

Tracking of multi-year disallowances and allowances and unconsumed challans that can help businesses manage their cash flow and plan for future tax obligations. Monitoring of this information can be used to optimise tax planning strategies and reduce the overall tax burden.

• Compliance & Assessment Ready

Timely health check analysis for course correcting and managing future compliances. Readily available reports which can be submitted to tax authorities during assessment proceedings.

• Compliance Management

An automated solution to streamline the process of determining TDS/TCS rates, generate monthly TDS/TCS payments, facilitate the filing of quarterly returns, generate TDS certificates and prepare clause 34 and 21(b) of the tax audit report.

• Notifications & Reminders

Notifications to users for monthly/quarterly reconciliation and changes in master data. Reminders for timely deposit of TDS/TCS, before the due date for filing of returns and where the Nil/LDC certificate is nearing its expiry.

• Integration with ERP

Fetches Master and Transaction data from the client’s ERP and connects it with the in-house solution using API integrators, SFTP or through manual Excel upload.

• Vendor and Customer Communication

Sending intimations/communications to vendors and customers regarding confirmation on compliance of 206AA/206AB and tracking responses received. Sharing TDS/TCS certificate after the TDS/TCS return filing.

• Reports and Dashboards

Analytical view is available for consolidated group-level, entity-level and TAN-level information.