The tax landscape is rapidly changing with “digital” at the helm of this evolution. With the continuously evolving landscape, focus of the Government has moved to using technology as a backbone to ensure tax compliances and to undertake tax risk assessments.
TDS and TCS compliances have become increasingly challenging due to:
- expanding scope (TDS on dividends, purchase of goods etc.) and increased complexity on account of interplay between TDS and TCS provisions.
- dependency on vendor and customer information (tax return filing status, amount of TDS and TCS credit etc.) to determine applicability of TDS vs TCS and corresponding rate at a transaction level.
- additional disclosures.
- technology-based tax assessments.
- increasing reputational and financial risks.
Further, challenges with respect to TDS data mapping and transformation, limited system-based controls, determination of tax filing status of vendor/customer and related applicable conditions, lack of TDS sensitized data from Enterprise Resource Planning (ERP), and sub-optimal audit readiness increasingly make TDS compliances more cumbersome and challenging for the industry.
Hence, there is a growing business need for a transformation solution for handling TDS and TCS compliances and reporting requirements.
EY DigiTDS provides a comprehensive solution for transformation of your processes dealing with:
- TDS on:
- Dividend payments (by listed companies) made to shareholders.
- Resident as well as non-resident business payments, including purchase of goods.
- TCS on sale of specified goods.
DigiTDS enables transformation of TDS and TCS function across people, processes, data and technology in an organization.