PRESENTED TO: MR. DEEPAK SOOD MR. PUSPINDERJIT SHARMA (ASS. PROF.)

PRESENTED BY: AMITA MBA - 3 105042249854

WHAT IS E TDS ???

Tax deduction at source means the tax deducted on the payments made by the deductor to third parties.

ELECTRONIC FILLING OF RETURNS OF TDS,2003Is known as E TDS

What is E TCS ?? TCS

means collection of tax at source by the seller (collector) from the buyer (collectee/payee) of the goods &

"Electronic Filing of Returns of Tax Collected at Source Scheme, 2005Is known as E - TCS

INTERMEDIARY OF E TDS & E -TCS National

Securities Depository Ltd. (NSDL)

(appointed by ITD) Deductors can submit returns through TIN-Facilitation Centers (TIN-FC) established by NSDL or Directly upload through NSDL web-site.

OBJECTIVES OF THE STUDY

To know about the CONCEPT & MEANING of TDS & TCS & return To know the PROCEDURE FOR FILLING the E-TDS & E-TCS return To know about the QUARTERLY RETURNS of E-TDS & E-TCS To study about the SECTIONS & FORMS & CERTIFICATES consider under this topic.

RESEARCH METHODOLOGY

Area of the study: - Vardhman spinning and general mills, Ludhiana. Schedule of training: - Six weeks between the month of June and July. Data collection technique: - Secondary data is used which had been already available.

Limitations of the studyTDS & TCS is very vast topic This topic consider many sections, so cover each & every aspect in these sections is so difficult Our trainers are not able to give us too much time because of busy schedule. Training period is short

VARDHMAN SPINNING AND GENERAL MILLS, LUDHIANA(UNIT OF VARDHMAN TEXTILE LTD.)

Vardhman is a major integrated TEXTILE PRODUCER in India. Vardhman Group, born in 1965, under the entrepreneurship of LATE LALA RATTAN CHAND OSWAL VISION to be globally recognized as a leading supplier of quality fabrics

LOGO OF VARDHMAN GROUP

PORTFOLIO

HOLDINGSVARDHMAN GROUPVardhman Textiles Limited Vardhman Acrylic Limited

VMT Spinning Company Limited

Vardhman Yarns and Threads Limited

Vardhman special steel Ltd.

SOCIAL RESPONSIBILITYSri Aurobindo Socio-Economic and Management Research Institute SriAurobindo College of Commerce and Management (affiliated to the Punjab University)

5 S (METHODOLOGY)Japanese English Equivalent

Term

Translation

'S' term

Seiri Seiton Seiso

Organisation Tidiness Cleaning Standardisati

Sort Systematise Sweep

Seiketsu on Shitsuke Discipline

Standardise SelfDiscipline

Total Productive Maintenance (TPM)Zero Defect Zero Accident Zero Breakdown

CHAIRMAN CUM- MANNGING DIRECTOR

CORPORATE GENERAL MANGERS VICE PRESIDENTS

ORGANISATIONAL HIERARCHY CHART

MANAGERS (M1-M4)

EXCEUTIVES (E1-E4)

OFFICERS (O1-O4)

STAFFS (S1-S4) SUB STAFF

CHART OF ACCOUNTS DEPARTMENTMR. VIVEK NAYAR (VP-COMM&ADMIN)

MR. O.P. SAMKRIA (ASST. E-1)

MISS. JYOTI DALUI (OFFICER-2)

MR. CHANDER MOHAN SHARMA (HEADCASHER OFFICEE- 2)

MS. PRIYANKA SHARMA (ASST. OFFICER 2)

MRS. SANJEEV SADDAR (ASST. S 2)

MR. VINAY KHANNA (SR. ASST. S4)

MR. RAJ KUMAR NEGI (CASHIER S4)

INTRODUCTION OF THE PROJECT

What is TDS?? TDS is the tax getting deducted from the person (Deductee) by the person paying such amount (Deductor). This is applicable for certain types of payments, as applicable under the Act. IT IS ADVANCE TAX WHICH IS PAID ON MONTHLY BASIS.

IMPORTANT TERMS

TAX DEDUCTION ACCOUNT NUMBER (TAN) The person who is liable to deduct the Tax should obtain a TAN before deducting such Tax.

PERMANENT ACCOUNT NUMBER (PAN) Compulsory to quote PAN ,otherwise penalty reaches to 20%

DEDUCTOR Deductor is a person/company who is liable to deduct the Tax at source, from the payment being made to the party.

DEDUCTEETYPES OF DEDUCTEE

NON SALARIES

SALARIES ( FORM 24Q)

RESIDENT ( FORM 26Q)

NON RESIDENT (FORM 27 Q)

TDS CERTIFICATES (section 203)

ARE ISSUED QUARTERLYTYPES OF CERTIFICAT ES

Salaries Form 16

Nonsalaries Form 16A

BASIC STATASTICAL RETURNS (BSR) CODE

It is of seven digit unique code & allotted by RBI to that bank branch which is collecting the tax

CIN (Challan Identification Number)CIN has three parts Seven digit BSR code of the bank branch where tax is deposited Date of Deposit (DD/MM/YY) of tax Serial Number of Challan

IMPORTANT FACTS:TDS is not applicable if Pan is provided by the transporter. Surcharge and cess is not applicable on TDS with effect from 1 April 2009 on any payment made by the resident. Late date of depositing deducting tax is 7th day of next month TDS RETURN

Winning from lotteries

Winning from horse races

Commission on insurance

LATEST TDS (TAX DEDUCTED AT SOURCE) RATE 2010 -2011Payment source 10000 5000 20000

Threshold in Rs.

Rate in (%) 30 30 10

Rent or propertyInterest from bank Commission/brokerage Professional fees Scrap Toll plaza/Mining /quarrying Interest on debenture and securities Withdrawal from NSS Payment to non-resident sportsmen Income from long term capital gain

18000010000 5000 30000 2500 -

1010 10 10 1 2 10 20 10 20

Income by way of short term capital gainFees for technical services payable by Government or an Indian concern in Pursuance of an agreement made by nonResident with the government

-

15

-

10

What is TCS ???Means collection of tax at source by the seller or collector, from the buyer of the goods For e.g. if purchase value of goods is 10,000/-, the buyer will pay an amount of 10,000/- + X (X being the value of TCS as prescribed under Income-tax Act, 1961) to the seller.

TAX RATENature Of Goods Alcoholic Liquor Percentage/Rate Of Tax 1

Timber Obtained Under LeaseTimber obtained by any other mode

2.52.5

Tender LeavesOther Forest Produce, excluding Tender leaves and Timber Scrap

52.5

1

IMPORTANT FACTSFor tax collection at lower rate, a buyer can apply to his Assessing Officer in Form 13. For exemption from TCS, buyer declare form 27C to the seller

TAX DEDUCTION & COLLECTION ACCOUNT NUMBER:(TDCAN BETTER KNOWN AS TAN) FORM 49B

Contd.TAX COLLECTION CERTIFICATE TO BUYER The certificate shall be issued to the buyer on Form 27D with in one month from the end of the month during which amount is collected from the buyer TCS RETURN

ACCOUNTING OF TDS & TCS

IN CASE OF TDSWHEN TAX IS DEDUCTED BY DEDUCTOR Party A/c ... Dr To TDS A/c Cr WHEN IT PAY IN BANK TDS a/c... Dr To bank A/c Cr

IN CASE OF TCS

A sold timber to B worth Rs. 10000 with TCS applicable 2%

In A's Books Cash A/c Dr. 9800 TCS by Others A/c Dr. 200 To Sales 10000 In B's Books Purchases A/c Dr. 10000 To Cash 9800 To TCS 200

Due dates for filing of TDS/TCS returnsQuarter Form Nos. 24Q Form No. 27Q FormNo. 27EQ & 26Q April to June July to September 15 July 15 October 15 July 15 October 15 July 15 October

October to December15 JanuaryJanuary to March 15 May

15 January15 May

15 January15 May

SOFTWARE USED BY VARDHMAN SPINNING AND GENERAL MILLS, LUDHIANA.

PROCEDUREDeduct correct TDS Make correct challan/payment Verify a paid challan Prepare correct statement Submitting a Regular Return

Contd..Verify submitted return Inconsistencies in TDS returns

Correction in regular return Submit & verify a correction statement TDS register maintenance

Issue TDS certificate

SUGGESTION & RECOMMENDATION

SPEED OF SYSTEM IS REQUIRED TO BE IMPROVED.

SYSTEMS ARE

OUTDATED

BIBLIOGRAPHYWEBSITES http://www.saraltds.com/articles/tdsepayment.php http://www.tax4india.com/ Some concept taken from the book Direct Tax Study from the previous records

ANNEXUREFORM 16 A FORM 26 Q FORM 27 A FORM 27 D FORM 27 EQ