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tds and service tax compliance

Ankit chaturvedi (CA in Practice) (241 Points)

23 August 2017

how to check the service tax and tds compliance of client

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Rakesh Bandal (Self Employed and Agriculture) (1349 Points)
Replied 23 August 2017

Most easy way to check TDS compliance is to go through sundry creditors group in liability side of balance sheet and ask nature of transaction with each party.

apply TDS rules w.r.t rates and limits as per Income Tax Act

Also check cash ledger and find out expenses where double entry of system is not followed (i.e. Entires are passed debiting Expense head and crediting cash ledger, no party account is debited)

For Service Tax

1. Refer service tax returns

2. Compare Turnover of service tax and Income Tax

3. check tax rates and abatement if any

4. for reverse charge refer reverse charge rules as per service tax rules

5. and study how entries of service tax are passed in tally or clients software