- Prepare Quarterly e-TDS/TCS Correction statement with RPU version 2.0 as per new data structure (with effect from October 01, 2009).
- Prepare correction statement as per old data structure (accepted in TIN as per the old data structure) with RPU version 1.8.
Posts Tagged ‘TCS’
New Changes to Remember
January 4th, 2010Online Registration of TAN by TDS/TCS Deductors
November 27th, 2009The income tax department has asked all deductors to register their TAN on NSDL web site. Once registered, the deductors will be provided User ID and password for authenticated access.
Benefit of registration
The access will result in the following benefits to the deductors:
• View of status of all statements filed;
• Download of consolidated quarterly e-TDS / TCS statement for preparation of correction statement; and
• Other functionalities related to quarterly TDS /TCS statement.
Before registration
• Keep Provisional Receipt Number (PRN) of any eTDS Statement filed on or after 01-04-2008.
• Go to “Quarterly Statement Status”. Enter TAN and PRN Number. Ensure that this statement is accepted by TIN. You will have to enter details of such statement during registration.
• Keep PAN details
Registration Form
TAN registration should be done online at the website of the Tax Information Network www.tin-nsdl.com. Deductors must register all active TANs.
Use the following link to register the TAN: http://www.tin-nsdl.com/onlinetanintro.asp. Online form will appear. The details to be filled in are explained below:
Details of Deductor
• Enter TAN and Company Name
• Enter PAN. Mention “PANNOTREQD”, in case PAN is not available i.e. deductor is not required to have PAN as per the statute.
• Select appropriate deductor category from the dropdown.
• For Government deductors additional information is required to be filled in
1. PAO Code and DDO Code are mandatory for deductor category “Central Government”.
2. If PAO Code is not available then mention value “PAOCDNOTAVBL”.
3. If DDO Code is not available then mention value “DDOCDNOTAVBL”.
4. For PAO/ DDO Registration number, mention registration number allotted, if any, by Central Record Keeping Agency (CRA) under New Pension Scheme (NPS).
Contact Details of Deductor
• Mention complete address and contact details of deductor.
• Provide valid email id and telephone no. / Mobile no.
• Provide details of responsible person and designation.
Statement Details
• Mention details of any regular e-TDS / TCS quarterly statement accepted in TIN on or after April 01, 2008.
Generation of Acknowledgement
• After filling up the information, click “submit”. On submission of details if system shows any errors, rectify and re-submit the form.
• A confirmation screen with all the data filled by the user will be displayed. The same can be either confirmed or edited.
• On confirmation, an acknowledgement number will be displayed.
• Print the acknowledgment and preserve the same for future use.
• For future correspondence mention the TAN registration number provided by TIN along with the TAN.
• You can re-generate the “Acknowledgement for TAN Registration” by registering again.
Comments
This is very useful facility and will make the task of deductor simpler.
• The biggest advantage is ability to retrieve eTDS Statement filed earlier. Several deductors do not keep backup of eTDS statement FVU files and when a correction is to be filed, they have no recourse.
• Another problem being faced by deductors is to keep track of original FVU and correction FVU. Many times several correction statements need to be filed e.g. when valid PAN become available. Hopefully, NSDL should be able to provide the updated FVU online for further creation of correction.
• At present, a deductor has to go to several links for information retrieval e.g. Challan Status Enquiry, quarterly statement status, eTDS online filing. With this new facility it is expected that all these services will be available in a single window.
Modifications in the e-TDS/TCS data structure and new File Validation Utility applicable from October 1, 2009
September 4th, 2009The data structure of quarterly e-TDS / TCS statements has been modified by the Income Tax Department to incorporate certain additional fields and validations to further improve the data quality.
Key changes in the data structure of both regular and correction e-TDS/TCS files are indicated below:
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The types of deductor in the data structure have been further bifurcated. For e.g. State Govt., Central Govt., Company, Firm etc.
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The following fields have been added: -
- Ministry name,
- PAO / DDO code,
- PAO / DDO registration no.,
- State name,
- Name of the utility used for return preparation.
In addition to the new fields, certain functionalities as under have been built in the FVU:
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Functionality to verify the challan details quoted in the e-TDS / TCS returns with the challan details uploaded by banks is provided.
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In case of failure of verification of challans, a warning file containing details of challan mismatch will be generated.
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Statistic report generated by FVU will contain details of verification of challans and bifurcation of payment by Government deductors (transfer voucher / challan)
All deductors are required to ensure that quarterly e-TDS/TCS returns filed from October 1, 2009 is as per the new data structure. Any statement filed as per the old data structure will be rejected at TIN w.e.f October 1, 2009.
However, e-TDS / TCS correction on regular returns filed as per the old data structure (validated with FVU version upto 2.126) should be validated with FVU version 2.126 only.
Budget 2009-10: TDS changes
August 7th, 2009
TDS Rates
Applicable for AY 2010-11 (FY 2009-10)
1. 194-I: Rental Payments
a. Earlier rates:
Plant and Machinery = 10%
Land or building or furniture or fittings to Individual/HUF = 15%
Land or building or furniture or fittings to Others = 20%
b. Revised Rates:
Plant and Machinery = 2%
Land or building or furniture or fittings to anyone = 10%
2. 194-C: Contracts
a. Earlier rates:
Contracts = 2%
Sub-Contracts = 1%
Advertisement Contracts = 1%
b. Revised Rates:
Contracts to Individuals/HUF = 1%
Contracts to others = 2%
Surcharge and Cess
1. No surcharge or Cess is applicable for TDS. Only the specified TDS rates should be considered for deduction
2. Applicable for AY 2010-11 (FY 2009-10).
Payment to Transporters:
1. For any Transporters, if they Provide the PAN number, the TDS on contract payments is NIL.
2. But, if they do not provide the PAN during the payment, 1% TDS has to be made for Individuals/HUF and at 2% for others.
3. Payments to transporters without deducting TDS (as they have quoted PAN) should be reported by Deductor with PAN details
to the Income Tax Department in the prescribed format.
4. Applicable for AY 2010-11 (FY 2009-10).
Compulsory PAN (Section 206AA)
1. It is mandatory to quote PAN in all correspondence, bills and vouchers exchanged between Deductor and deductee.
2. TDS shall be made at a flat rate of 20% (or actual rate, whichever is higher) for any payments, where assessee has not
quoted the PAN during the payment.
a. This is applicable even in case where assessee gives Form 15G/15H u/s 197A.
b. This is also applicable for Non resident Payments.
3. Assessing officer shall not rise the letter for lower/no deduction, If assessee doesn’t quote a PAN.
4. Applicable for AY 2011-12 (FY 2010-11). Means the payments made on or after 01st April 2010.
TDS reconciliation (Section 200A)
1. A new section 200A is introduced.
2. TDS return filed by the deductor will be processed by the following way:
a. TDS deductible will be computed on the basis of data in TDS statement, after adjusting any arithmetic error or an
incorrect claim.
b. The interest, if any, shall be computed on the basis of the sums deductible on the basis of data in TDS statement.
c. Any amount payable by / refund to Deductor shall be determined.
d. Intimation shall be sent to Deductor on Amount payable / refundable.
e. The amount refundable, if any shall be granted to Deductor.
TDS returns
1. Currently returns has to be filed Quarterly in Form 24Q/26Q/27Q/27EQ
2. Currently government is not allowed to decide the Periodicity of TDS returns, as the power is limited only for structure
of forms and the manner.
3. In order to provide administrative flexibility in deciding the periodicity of such TDS related statements, the existing
provisions are modified, so as to allow the Government to prescribe periodicity of such TDS statements besides prescribing
their form and manner.
4. Applicable from 01st October 2009.
Computerized processing of TDS returns
1. Currently every TDS return involves manual-cum-computerized processing inside the department.
2. To make the process efficient, department will computerize whole process, where statements regard to TDS will be
processed.
a. This will be on the same lines, how IT returns processing has been computerized in Income Tax Department.
b. This processing will allow manual interference for
A. Any arithmetical error in the statement.
B. An incorrect claim, if such incorrect claim is apparent from any information in the statement, for example, in respect
of rate of deduction of tax at source where such rate is not in accordance with the provisions of the Act.
c. A Centralized Processing Center may be established in this regard.
d. Applicable for AY 2011-12 (FY 2010-11).
Know Form 27A/B
July 22nd, 2009Form No. 27A/B 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/B should match with the corresponding control totals in e-TDS/TCS return. A separate Form No. 27A/B 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.
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.
