STANDARD OPERATING PROCEDURES (SOP) FOR ADMINISTERING TDS INCORPORATING THE RE-ENGINEERED PROCESSES DEVELOPED BY THE CPC-TDS
TDS is a non-obtrusive but powerful instrument to prevent tax evasion as
well as to expand the tax net. TDS also minimizes tax avoidance by the
taxpayer (income earners), as the payee’s transaction(s) are reported to
the Department by the third person. The contribution of TDS to the
overall gross direct taxes collections during F.Y.2013-14 was
Rs.2,71,069 crore. This is a 17.88% growth over the collections shown
under this minor head from Rs.2,29,943 crore during F.Y.2012-13. Thus,
TDS now contributes more than 37% to the gross direct taxes collections,
emphasizing its ever growing importance.
2. With the Centralized Processing Cell for TDS at Vaishali, Ghaziabad,
the TDS administration is now driven through technology support. The
CPC-TDS provides comprehensive MIS on compliance behaviour of the
deductors, defaults details, PAN errors besides helping the deductor or
the Department to identity & rectify mistakes. The strategy to
augment revenue through TDS ought to be, therefore, 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.