Complications are just around the corner when we talk about the TDS provisions i.e. Tax Deducted At Source. TDS is a statutory obligation implied by the Income Tax Laws on every Individual/ Firm/ Organization. TDS is the amount which is deducted by anybody (Individual/Firm/Organization) who is having a valid TAN No. and have a valid contract with the assesse as per the rates defined by the finance ministry and the amount is being credited in govt. a/c by the tax deductor and issue a TDS certificate to the assesse.
TDS is liable to be deducted only when the amount of payment exceeds minimum limit for TDS category in one accounting year. Further in order to reduce hardship on smaller contractors a provision is made under Income Tax rules to levy reduced TDS rate for certain period on due authorized letter.
Confused???
As said earlier, there is nothing as complicated as the TDS rules and regulations. Imagine the terror the accountants of each association go through every quarter end.
Frequently asked questions like, how do I calculate the miscellaneous payment? How will the e-TDS returns be prepared?
What are the due dates for filing quarterly TDS Returns?
And many of such ordeals occur at the time of TDS filing and many a time due to lack of accurate information organizations end paying heavy penalties for not submitting the accounts in time.
There is a better way, to tackle in the TDS provisions along with the financial accounting of your organization.
Greytrix leads an easy way through the as ever difficult Indian Statutory especially in the TDS provisions by coming with the Greytrix Add-on TDS module for all the editions of Sage ACCPAC ERP. The TDS module, an add-on for Sage ACCPAC ERP, captures essential tax related information and generates reports in government recognized formats.
The Tax vital information like maintaining the default state codes and the section of coverage is done within the TDS Module automatically. Maintaining the various bank codes and the branch codes was always a mess with the system capturing this data and with the help with the advance finder options entering making a remit entry is no longer an hour’s job.
You can process TDS transactions like the tds deduction at source for regular invoice, cumulative cutoff invoice, acknowledgement entries and much more. Generate the Forms like 16A, 26/27Q using user apt parameters to get exactly what the government requires to witness at every accounting period end.
Form 16 A has an exhaustive information to capture like the Acknowledgement Nos. of all Quarterly Statements of TDS under sub-section (3) of section 200 as provided by TIN Facilitation Centre or NSDL web-site along with the details of payment, tax deduction and deposit of tax into Central government account.
Once the tax from the vendor is deducted and remitted, the deducting authority should provide Form16A report to the service provider for his remittance. In this form, you can generate Form16A copies as well as generate print outs for the same.
Also, Form 26 Q and Form 27 Q are the hard copies of the remittance submitted to the Tax Authority of India for their verification. The Form26Q is related to the resident Tax Payable Persons and Form27Q is for non-resident persons. Each form details should be submitted to the government on quarterly basis.
Calculation of the tax to be remitted is just one side of the coin and to remit the amount without any penalty is the other herculean task. Greytrix TDS module calculates the due dates of remitting the amount to the government once the user enters the start date of the fiscal calendar. Thus your finance team is aware of the penalty strike occurrence if due dates cross over allowing them to be well prepared in advance.
With a vital combination of a World Class ERP solution and technical expertise from Greytrix, Greytrix TDS add on for Sage Accpac ERP works more accurately and in the favor of the Indian Tax Scenarios.
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Greytrix let the products speak for themselves hence request for a live demo or webinar for your team, where we would addresses the pain points in your organization and guide you to a more efficient business process. Mail us at marketing @greytrix.com for Greytrix TDS for Sage Accpac ERP Demo.
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