KPMG e-TDS & TCS Compliance Solution

Challenges of tax/finance function

For the purposes of clause 34(a) of Tax Audit Report (TAR), reconciliation required of expense general ledger (GL) vis-à-vis details reported in the TDS return:

Expense data is voluminous and unstructured which makes it time consuming and prone to error

Lack of reliable report regarding transactions on which ‘tax is not deducted’ resulting in overall qualification in clause 34(a) of Tax Audit Report.

KPMG e-TDS & TCS Compliance Solution

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How our customised ERP automation addressed the challenges?

Reviewed ‘as-is’ positions to understand transactions and business arrangement and provided report on the data gaps
Recommended customisations in ERP (SAP) for tax codes along with process improvements for automated reconciliation report from the ERP

Created a blueprint for customised automated TDS reconciliation report directly from ERP.

Outcomes

Increased accuracy of the reconciliation report and process improvements - ERP standard functionality used for many improvements
Significant reduction in time/effort spent by client team on the complex reconciliation process leading to efficiency and increased accuracy