Clause 34(b) - Reporting Furnishing of TDS/TCS Statements
Clause 34(b) - Reporting Furnishing of TDS/TCS Statements
This clause encompasses the following actions: Determining whether the assessee is mandated to furnish the TDS/TCS Statement. Previously, reporting was necessary only for late-filing instances.
An assessee is obligated to provide the TDS/TCS Statement once they've deducted or collected tax and remitted it to the Central Government. Additionally, they can submit a correction/rectification statement.
The following details need to be disclosed:
a) TAN of the Assessee.
b) Type of Form - This includes all forms like Form 24, 24G, 24Q, 26, 26A, 26B, 26Q, etc.
c) Due Date for Furnishing.
d) Actual Date of Furnishing (if applicable) - Even if the statement is later revised/corrected, the original return's date should be stated.
e) Inclusion of All Transactions: Confirmation if the statement contains details of all transactions required for reporting. If not, the auditor should provide a list of unreported details/transactions.
The requirement to furnish this list was introduced on August 20, 2018. To fulfill this requirement, the auditor should analyze the TDS/TCS statement and adhere to matters stipulated in Rule 31A(4) (for TDS) and Rule 31AA(4) (for TCS)
Instances where transactions were necessitated to be reported, but the assessee omitted them could include those involving transporters (where tax isn't deducted if a declaration under section 194(6) is provided), TDS exemption due to Form 15G / 15H submission, or NIL TDS liability due to a certificate under section 197.
If the assessee deducted/collected and remitted tax but omitted it from the TDS/TCS statement, this discrepancy should also be reported. Reasons could vary, including unavailability of PAN. After conducting thorough audit procedures and verifications, the auditor may also acquire suitable management representation on the matter:
"We have reported all transactions required to be mentioned in the TDS/TCS statement and have not excluded any reportable transactions."
f) Verification of Corrections: If an assessee revises or corrects their TDS statement, the details from the corrected statement should be examined.
g) Sampling and Materiality: As it might be challenging to individually verify every transaction, the auditor can employ the principles of materiality and audit sampling during verification.
This clause enhances the comprehensive reporting of TDS and TCS activities. Due to the evolving nature of tax regulations, staying up-to-date with the latest forms and regulations is recommended. Consultation with a qualified tax professional or Chartered Accountant is advised to ensure compliance with the most current requirements.