TDS Procedure in RPATech

Procedures for TDS (Tax Deducted at Source) Compliance at Spawn Ventures Services Pvt. Ltd. using Zoho
Books and Zoho Payroll, with filing assistance from a CA and payment handling by Alok Mani:

1. TDS Deduction and Recording in Zoho Payroll and Zoho Books.

1.1. TDS Applicability:

- The Finance Team, with the assistance of the CA, determines the applicability of TDS for various
payments as per the provisions of the Income Tax Act, 1961.

1.2. Employee TDS Deduction:

- Zoho Payroll automatically calculates TDS for employee salaries based on their declared investments
and the applicable income tax rates.
- The Finance Team ensures that TDS is deducted accurately from employees' salaries and recorded in
Zoho Payroll.

1.3. Vendor TDS Deduction:

- The Finance Team verifies vendor PAN details and their TDS rates before making payments.
- Zoho Books calculates and deducts TDS for vendor payments as per the applicable rates.
- Standard (194J): In this scenario, where the vendor is providing typical goods or services, a 10% (may
change from time to time and is recorded in Zoho books) deduction happens and 2% TDS on Technical
services under 194J . Section 194 C 2% TDS deduction on contract base.
- Lower Deduction: In the third scenario, where the vendor has applied for a lower deduction. it should
be mentioned in the bill, and the certificate for lower deduction should also be available.
-Reselling: In the second scenario, where the vendor is reselling licenses or similar stuff, there is no
need for deduction because it is reselling (vendor invoice should have mentioned that).

2. TDS Payment Handling by Alok Mani:

2.1. TDS Challan Generation:

- Alok Mani, responsible for payment, generates TDS challans in Zoho Books for each TDS deduction
made in Zoho Payroll.

2.2. TDS Payment:

- Alok Mani ensures that the TDS amount is paid through the authorized bank using the generated TDS
challans.
- The payment is made before the due date specified by the Income Tax Department.

3. TDS Return Filing by CA:

3.1. TDS Data Compilation:

- The Finance Team compiles all TDS-related data from Zoho Payroll and Zoho Books.
- They share the necessary details, such as TDS deducted and challan details, with the CA for TDS
return preparation.
3.2. TDS Return Preparation:
- The CA prepares the TDS returns (e.g., Form 24Q, Form 26Q) using the TDS data provided by the
Finance Team.
- The CA validates the TDS return for accuracy and compliance with the Income Tax Act.

3.3. TDS Return Filing:

- The CA files the TDS returns with the Income Tax Department on behalf of Spawn Ventures Services
Pvt. Ltd.
- The CA ensures timely filing of TDS returns as per the prescribed due dates.

4. Record Maintenance:

4.1. TDS Records in Zoho Payroll and Zoho Books:

- The Finance Team, with the support of Zoho Payroll and Zoho Books, maintains accurate records of
TDS deductions, challans, and returns.

4.2. TDS Returns Filing Records:

- The CA maintains proper records of all TDS returns filed, along with relevant documents and
acknowledgments.

5. Compliance Monitoring and Updates:

5.1. Regular Compliance Review:

- The Finance Team, CA, and Alok Mani continuously monitor TDS compliance and review the
effectiveness of the procedures.
- Necessary actions are taken to comply with any new TDS rules or requirements.

5.2. TDS Rate and Regulation Updates:

- The CA keeps the Finance Team informed about any changes in TDS rates, thresholds, and filing
requirements.

6. Revision and Review:

- The procedures for TDS compliance using Zoho Payroll and Zoho Books are periodically reviewed by
the Finance Team and the CA to ensure accuracy and alignment with current regulations.
Section 1: TDS Deduction and Recording in Zoho Payroll and Zoho Books

TDS Records in Zoho Payroll and Zoho Books. Zoho Payroll and Zoho Books maintains accurate records of
TDS deductions, challans, and returns.

Section 2: Vendor TDS Deduction:

The Finance Team verifies vendor PAN details and their TDS rates before making payments. Zoho Books
calculates and deducts TDS for vendor payments as per the applicable rates

Section 3: Employee TDS Deduction:

3.1. Human Resources Department:

Maintain accurate employee records in the Zoho People.
Verify and update employee details, such as attendance and leaves.
Share relevant employee information with the Finance department for payroll processing.

Zoho Payroll automatically calculates TDS for employee salaries based on their declared investments and
the applicable income tax rates.
The Finance Team ensures that TDS is deducted accurately from employees' salaries and recorded in
Zoho Payroll.