TMI BlogSTANDARD OPERATING PROCEDURES (SOP) FOR ADMINISTERING TDS INCORPORATING THE RE-ENGINEERED PROCESSES DEVELOPED BY THE CPC-TDSX X X X Extracts X X X X X X X X Extracts X X X X ..... fore, a mix of enforcement, capacity building (external and internal) and leveraging of information that is now available with the Department through the CPC-TDS. 3. With the enablement of all functionalities, available to the TDS Assessing Officer through AO Portal, the Standard Operating Procedure (SOP) specifying the role of Officers, who are associated with TDS administration, becomes necessary. The SOPs have been framed to address the various features in the re-engineered processes in TDS administration. The SOPs have been made on following issues :- i. Matching the unconsumed challan. ii. Top deductors paying less/no tax with respect to previous financial years. iii. Resolvable/Collectible TDS Demand. iv. G-OLTAS reconciliation. v. Corporate connect for TDS compliance. I. DRAFT OF STANDARD OPEPRATING PROCEDURE FOR MATCHING THE UNCONSUMED CHALLAN 1. Introduction: A challan may remain unconsumed on the computer system under following circumstances:- a) In case of a deductor where demand has been raised due to short payment or; due to quoting of wrong challan particulars in TDS statement; there might be an OLTAS challan available in the account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal) To facilitate AO TDS the view of unmatched challans in the statements filed by TANs under their charge and; to enable them to match these challans with any of the unconsumed challans available in OLTAS database, under the ownership of same TAN for the relevant period. The AO Portal provides the functionality of Forced Matching of challan. Only unmatched challans in a statement will be shown in the output table. At present, statements filed for F.Y. 2010-11 and 2011-12 only are available for forced matching. Only those challans from OLTAS will be displayed whose FY is within +1/-1 year range of F.Y. of the searched statement. Total of the amount shown in challan quoted in the statement has to be equal to or less than the available balance in a challan. Force Matching gives credit to the statement without changing the challan details mentioned in the statement. Hence, force-matching should be done only on deductor s request in writing and the application is to be uploaded on the portal while raising the request for such force-matching. Challan fields claimed interest , claimed others , and levy are not editable during forced matching. 2.3 Lin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecommended that payments made on account of compounding fee are uploaded using the bulk upload demand functionality. It is suggested to maintain the record in current D CR, which should be uploaded periodically (say fortnightly). At present no such record is maintained at the AO TDS level. A cut-off year/date can be decided and the information beyond these years/date can be compiled and uploaded on the system. Henceforth functionality may be enabled in the TRACES for calculating the compounding fees, which will also generate a demand notice. On payment, the demand can be tagged by the challan. To cater to this need and root-out these possibilities, CPC-TDS has introduced two sets of functionalities as under :- 2.5 Bulk-Upload Demand User can add/modify/delete a manual demand row by row. Manual demand created by the AO - TDS, has to be uploaded in the System. Utmost care should be taken as to what types of demands are to be uploaded. The deductor making payment on account of Compounding Fee should also be kept on record separately in the current D CR and uploaded from time to time. The payment on account of such compounding fee is also being reflected as uncla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of manual demand by the AO TDS on regular basis. (v) Holding weekly review meeting with all AO TDS. (vi) Apprising the CIT(TDS) of the outcome of such review meeting. (vii) Sending the progress in this area in the monthly D.O. to the CIT and also to be included in the MIS which is to be sent to DIT (TDS), New Delhi. IV. Role of AO TDS (i) Uploading manual demand on the System on daily basis. (ii) Identifying TANs with unconsumed challans where no TDS return has been filed and issue letters to the TAN holders. (iii) Tagging the challans against the uploaded demands. (iv) Apprising the Addl. CIT(TDS) of the progress made by the 3rd of following month. V. Role of CIT(CPC-TDS), Ghaziabad:- (i) Disseminating the details of unconsumed challans at the AO TDS portal under TRACES which shall be available to CIT(TDS)/Addl.CIT and the AO TDS. (ii) Disseminating the details of unconsumed challans and demand outstanding to the TDS deductors by email. (iii) Aggregating the progress made in this area for each CIT(TDS) jurisdiction on a monthly basis on the AO TDS portal. (iv) Making a quarterly review on the progress and provide critical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of CIT (TDS): (i) Discussing top cases with substantial fall compared to previous years with the Range Head. (ii) Analysing the reasons for fall in the TDS/TCS collection in the top cases and also examining the same section-wise. (iii) Suggesting follow-up action like spot verification/survey etc. (iv) Incorporating the action taken, in monthly DO. (III) Role of Addl. CIT(TDS): (i) Examining the cases with substantial fall compared to previous years and also suggesting action on potential cases. (ii) Analysing the overall reasons for lower deduction or collection and also TDS/TCS section-wise analysis of negative trend. (iii)Taking follow-up action like spot verification/survey etc. (iv) Incorporating the action taken in monthly DO. (IV) Role of AO TDS: (i) Issuing letters to all TAN holders with substantial fall compared to previous years. (ii) Asking the Inspector to follow up these cases. (iii)Examining the negative trend in TDS/TCS collection section-wise. (iv) Getting market information about business prospects of the TAN holder. (v) Discussing all such cases with the Range head and also suggest corrective measures, if nec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of TDS charges should be filled up on the basis of the information of total demand rolled out by the CPC-TDS. (v) Apprising the result of the recovery process to the CCIT/DGIT by the 7th of the following month. (vi) Apprising the progress on resolvable demand to the DIT(TDS), New Delhi alongwith MIS report. (III) Role of Addl.CIT(TDS):- (i) Identifying resolvable demand to be recovered immediately after discussion with all the Assessing Officers. (ii) Holding weekly review meeting with Assessing Officers. (iii) Apprising the CIT(TDS) of the outcome of such review meeting. (iv) Preparing the CAP-I of TDS taking the total demand informed by CPC-TDS as the basis. (v) Sending the progress in this area in the monthly D.O. to the CIT and also to be included in the MIS which is to be send to DIT(TDS), New Delhi. (vi) Planning out any survey for recovery or resolution of such resolvable demand, if necessary. (VI) Role of AO TDS: (i) Preparing the CAP-I of TDS taking the total demand informed by CPC-TDS as the basis. (ii) Uploading manual demand on the System on priority. (iii) Identifying the resolvable demand due to short payment, interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AGs is an important task for the field formation. Existing Scheme: In the Government Accounting System each deductor is associated with a specific Accounts Officer (AO) who processes the bills prepared by the deductor. The Pay and Accounts Office (PAO)/District Treasury Office (DTO)/Cheque Drawing and Disbursing Office (CDDO) are required to file Form 24G as per Income-tax Department Notification no. 41/2010 dated May 31, 2010. In case of an office of the Government, where tax has been paid to the credit of Central Government without the production of a challan associated with deposit of the tax in a bank, the PAO / CDDO / DTO or an equivalent office (herein after called as AO in this document) government is required to file Form 24G . A unique seven digit Accounts Office Identification Number (AIN) shall be allotted, to every AO. Every AO shall furnish one complete, correct and consolidated Form 24G every month having details of all type of deduction / collection viz. TDS-Salary / TDS-Non Salary / TDS-Non Salary Non Residents / TCS. Existing CGA instructions ARRANGEMENTS FOR CREDIT TO CENTRAL GOVERNMENT OF INCOME TAX DEDUCTED AT SOURCE (TDS) FROM ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s more than months. e) TDS claimed by deductees of State Government departments in their individual returns of income, is more than the figure reported by State AGs/ Form 24G Standard Operating Procedure (SOP) defining the roles of different TDS Authorities in addressing the issue of GOLTAS reconciliation (I) Role of Pr. CCIT(CCA)/CCIT(TDS): (i) Interacting with Chief Secretary of State and Principal A.G. to highlight the issue (ii) Taking up the issue of belated remittance of Government TDS (iii)Suggesting follow-up action, if any, required with respect to the above (iv) Discussing and obtain details of progress made in such cases from CsIT(TDS) under him. (II) Role of CIT(TDS): i) Co-ordinating with State Government finance department and Account Officers and AGs (A E) to solve the issue ii) Maintaining a master list of AIN holders in his jurisdiction and periodically remove inactive AINs iii) Updating AIN-TIN mapping with the help of CPC(TDS) iv) Removing inactive TANs/AINs based on information sent by CPC-TDS and on enquiries made by AO TDS. v) Monitoring compliance in filing of Form 24G by the PAO/Treasury Officers (the AIN hol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsible for this and intimate field formations ix. Identifying AINs not issuing BIN and communicate the same to AO TDS and Addl. CIT(TDS). x. Identifying the incorrect details filed in AIN directory and generate such reports periodically. xi. Making accessible report about AINs /TAN in other CsIT(TDS) charges in the same state to all CsIT in that state, so that there may be better co-ordination. V. DRAFT STANDARD OPERATING PROCEDURE (SOP) FOR CORPORATE CONNECT FOR TDS COMPLIANCE. Introduction: CPC(TDS) has taken steps like Corporate connect for TDS Compliance for providing non-adversarial tax administration at the corporate level. The attempt is to make the Principal Officer of the corporate entity aware about the TDS defaults being committed by underlying branches. The purpose of the exercise is to impress upon the Head office that any default on part of branches and consequential interest, penalty is ultimately the liability of the corporate. As on date, a comprehensive view is available to the corporate entity (at PAN level) that displays TAN-wise defaults/compliance patterns for different years. This view is available to the corporates online under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exercise. ii) Apprising the CIT(TDS) of the outcome of such meeting on the first of the following month. iii) Maintaining a record of such meetings to be forwarded to the CIT(TDS) in the format which may be prescribed or through the monthly D.O. (IV) Role of AO TDS: i) Assisting the Addl. CIT(TDS) in organizing meetings with the Corporate CEOs/CFOs in his jurisdiction. ii) Maintaining a record of such meetings to be forwarded to the CIT in the format which may be prescribed or through the monthly D.O. (V) Role of CIT(CPC-TDS) Ghaziabad: i) Disseminating the updated information in soft copy in respect of Corporate PAN to respective CsIT(TDS) on the first of every month. ii) Forwarding a copy of such information in soft copy to the concerned Pr.CCIT/CCIT(TDS)/CIT(TDS) having jurisdiction over those Corporate PANs. iii) Reviewing on quarterly basis such progress and to provide further inputs/guidance to the region wherever it is required. iv) Supplementing the details required by field formations in top priority cases on the request received from the concerned CCIT region. - Circular - Trade Notice - Public Notice - Instructions - Office orders ..... X X X X Extracts X X X X X X X X Extracts X X X X
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