Introduction:
CPC(TDS) has taken steps like “Corporate connect for TDS Compliance” for providing non-adversarial tax administration at the corporate level. The attempt is to make the “Principal Officer” of the corporate entity aware about the TDS defaults being committed by underlying branches. The purpose of the exercise is to impress upon the Head office that any default on part of branches and consequential interest, penalty is ultimately the liability of the corporate.

As on date, a comprehensive view is available to the corporate entity (at PAN level) that displays TAN-wise defaults/compliance patterns for different years. This view is available to the corporates online under the heading ‘Aggregated TAN compliance’ on the portal of the CPC-TDS TRACES.

Work relating to Corporate Connect for TDS compliance:

i) Organizing workshops with big Corporates/Banks with large number of TANs to sensitize the Principal Officers of respective Corporates/Banks about various defaults being committed by their branches.

ii) Sensitizing corporates that the defaults committed by branches have implications on the total income of the corporate entity in view of section 40(a)(ia) of the Act and also the fact that interest u/s 201(1A), fee u/s 234E do not qualify work deduction and such defaults also attract prosecution against the deductor.

iii) Sensitizing the corporates that the defaults on their part impact their clients as they are unable to get credit in their income-tax returns.

Standard Operating Procedure (SOP) defining the roles of different TDS Authorities in addressing the issue of Corporate Connect for TDS compliance:

(I) Role of Pr. CCIT(CCA)/CCIT(TDS):
i) Interacting with CIT(TDS)under his jurisdiction on regular basis and to obtain from them result of cases followed up by them.
ii) Suggesting follow-up action, if any, required with respect to any particular Corporate PAN.
iii) Apprising the Zonal Member/Member(R) of the progress and result through monthly D.O. by 10th of the following month and a copy of the D.O. shall also be sent to Principal DGIT(Admn.).

(II) Role of CIT(TDS):
i) Discussing and obtain progress made in TDS Corporate Connect cases from Addl.CIT under him.
ii) Suggesting follow-up action, if any, required with respect to any particular Corporate PAN.
iii) Apprising of the result to the Pr. CCIT/CCIT(TDS) by 7thof the following month.
iv) Interacting with CEOs/CFOs of selected Corporate PANs in his jurisdiction and impress upon them the mutual benefits of such an exercise for both the Corporate as well as for the Income-tax Department.
v) Discussing and review the outcome of meetings held by the Addl.CIT(TDS) under him with respect to CEOs/CFOs handled by Addl.CIT(TDS).
vi) Distributing soft copies of latest information received from CPC-TDS to all the Addl. CIT(TDS) under him.

(III) Role of Addl.CIT(TDS):
i) Organizing meetings with the Corporate CEOs/CFOs in his jurisdiction and to impress upon them the mutual benefit of such TDS Corporate Connect exercise.
ii) Apprising the CIT(TDS) of the outcome of such meeting on the first of the following month.
iii) Maintaining a record of such meetings to be forwarded to the CIT(TDS) in the format which may be prescribed or through the monthly D.O.

(IV) Role of AO – TDS:
i) Assisting the Addl. CIT(TDS) in organizing meetings with the Corporate CEOs/CFOs in his jurisdiction.
ii) Maintaining a record of such meetings to be forwarded to the CIT in the format which may be prescribed or through the monthly D.O.

(V) Role of CIT(CPC-TDS) Ghaziabad:
i) Disseminating the updated information in soft copy in respect of Corporate PAN to respective CsIT(TDS) on the first of every month.
ii) Forwarding a copy of such information in soft copy to the concerned Pr.CCIT/CCIT(TDS)/CIT(TDS) having jurisdiction over those Corporate PANs.
iii) Reviewing on quarterly basis such progress and to provide further inputs/guidance to the region wherever it is required.
iv) Supplementing the details required by field formations in top priority cases on the request received from the concerned CCIT region.