Withholding tax payable solution - EY DigiTDS

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.