- For the purposes of clause 34(a) of Tax Audit Report (TAR), reconciliation required of expense general ledger (GL) vis-à-vis details reported in the TDS return:
- Expense data is voluminous and unstructured which makes it time consuming and prone to error
- Lack of reliable report regarding transactions on which ‘tax is not deducted’ resulting in overall qualification in clause 34(a) of Tax Audit Report.
Challenges of tax/finance function
How our customised ERP automation addressed the challenges?
- Reviewed ‘as-is’ positions to understand transactions and business arrangement and provided report on the data gaps
- Recommended customisations in ERP (SAP) for tax codes along with process improvements for automated reconciliation report from the ERP
- Created a blueprint for customised automated TDS reconciliation report directly from ERP.
Outcomes
- Increased accuracy of the reconciliation report and process improvements - ERP standard functionality used for many improvements
- Significant reduction in time/effort spent by client team on the complex reconciliation process leading to efficiency and increased accuracy
- Additional comfort to tax and finance management with automated clause 34(a) details for Tax Audit Report.
