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TDS(Tax Deduction/Withhold) Audit

TDS stands for abbreviation of Tax Deduction at Source, this is similar to tax withholding as in many countries.

Under Indian Income Tax Act, certain business expenses, like rent, salaries, Professional or contractual payments are subject to deduction of tax while making payment for those or booking the expenses. Tax so withheld is to be deposited with Authorities prescribed within a prescribed timeline. Interest and penalties are attracted and even disallowance of expenses is prescribed, where TDS provisions are not taken care of or may be due to lack of awareness or mistake, is missed to be either deducted or deposited. Deduction, deposition, preparation and submission of various TDS returns on periodical basis is required on an ongoing basis. Actually the process does not end on that, one has to request and download the requisite certificates as well and hand those over to the payees. International payments are also subject to tax withholding. But in those cases, specific attention is required to be paid for nature of services and applicability of tax treaties between the payer and recipient countries. And if there is applicability of Tax Audit on your entity, then, the auditor would also report the TDS discrepancies in their report.

We specialize at consultancy on TDS matters and Withholding Audits. Income Tax provisions belonging to TDS or tax withholding are becoming stringent day by day. Missing or mistaking both can attract considerable penal provisions. To avoid these messes, our pro services on advising and complying with TDS provisions always help you.

Why you may need it?

  • Ensure the compliance
  • Lower the compliance cost that may be caused by unnecessary interest or penalties
  • Lower the risk of litigation
  • Lower the tax expense that may be caused by disallowance of expenses which were subject to deductions
  • Better vendor management and avoidance of extra payments or unnecessary recoveries on account of TDS
  • An improved Tax Audit report

What we can help you with?

  • Assisting in identification of type of expenses and the rate applicable
  • Checking the accounts for correct application of TDS provisions
  • Reporting of non-compliance relating to deduction or payment of TDS
  • Advising on correction of filed returns, if required
  • Advising on best practices to avoid mistakes
  • Advising on DTAA and available benefits, in case of non-resident payees