TDS Scrutiny for Tax Audit, Company Audit or Internal Audit

Tax Deducted at Source (TDS) is responsibility of a person who is liable for tax audit in previous year or who is a company/ Firm. TDS Scrutiny is an important part for Tax Audit, Company Audit or Internal Audit.

As an Auditor, one should scrutinize tally data for non-deduction of TDS and non-payment of TDS amount to government by going through accounting data.

LedgerVision’s ledger scrutiny covers both GST and TDS Ledger Scrutiny. LedgerVision captures TDS applicability from following instances:

  1. Direct Cash Payment
  2. Direct Bank Payment
  3. Payment to Creditor
  4. Credit to Creditor
  5. Advance to Creditor
  6. Payment to Debtors (in some cases one person is treated as Debtor also and Creditors also)
  7. Loans and Advances
  8. EMI to NBFC
  9. Prepaid Entries
  10. Provision Entries
  11. Fixed Asset

TDS Categories checked by LedgerVision

  • Section 193 – Interest on Securities
  • Section 194A – Interest
  • 194C – TDS for Contractor Payment
  • 194H – TDS on Commission / Brokerage
  • 194I – TDS on Rent
  • 194J – TDS on Profession Fees

Software goes from expenditure to parties to check threshold limit of TDS applicability as per categories mapped. TDS can be deducted in combined entry or by-passing separate entry. LedgerVision is trained to capture TDS in both kind of accounting styles.

LedgerVision is also trained to provide TDS category-wise bifurcation even if TDS ledgers are not maintained category wise.

TDS Related Reports Generated by LedgerVision

1. TDS Scrutiny Report

This report shows short TDS, excess TDS and No TDS deducted for every party

2. TDS Party wise and Category wise Report

This report provides Party name, TDS category, bill amount, TDS Rate, TDS Deducted and Applicable TDS amounts

3. TDS Category wise, Party wise and Expenditure wise Report

This report provides Party name, TDS category, Expenditure Ledger name Amount, TDS Rate, TDS Deducted and Applicable TDS amounts are shown (useful for 34 A table)

4. Section 43B Table for TDS Payment before due date

Report U/s 43B shows TDS Amounts paid before due date and after due date and Interest Payable for late payment