TDS and TCS compliance

The question and deliverable

We review agreed transaction categories, organise deduction or collection workings and coordinate payment and statement records. Corrections and certificate reconciliation are tracked as distinct actions.

Agree the payer or collector, covered categories and reporting periods. Identify who confirms the nature of each payment and the counterparty details. Keep unresolved classification questions separate from data-entry errors so the statement working records both the decision and its factual basis.

Evidence to prepare

• Payment and expense ledgers
• counterparty tax details
• contracts
• payroll inputs where covered
• challans
• filed statements and mismatch reports.

Reconcile transaction-level amounts to the ledger and connect the deduction or collection working to available payment evidence. Retain the version used for each filed statement. A correction schedule should identify the original record, the proposed change and the reason, rather than replacing the earlier file without a trail.

A fact that can change the analysis

A year-end provision may need a different review from an invoice paid in cash. The payment label alone does not resolve timing or classification.

For example, a provision and the later supplier invoice may both appear in an export used for statement preparation. Trace their relationship and the treatment already recorded before preparing the next working. Otherwise, the same underlying expense can be counted twice in the preparation process.

Engagement boundaries

Rates, thresholds and form versions are checked for the relevant period. Cross-border opinions and old statement repairs are separately scoped.

The written proposal confirms the taxpayer, period, deliverables and fees. Identify any payment, response or appeal date at the start.

The handover identifies statements prepared or filed, payment records used, available processing results and unresolved mismatches. Keep certificate work and accepted corrections distinguishable from the original submission. A correction request remains open until its actual status and any further action are established.