CPC (TDS) mandates closure of Short Payment Defaults using Online Correction facility before allowing Conso Files

Date of communication : 09/08/2014 

Dear Deductor, 

The Centralized Processing Cell (TDS), in its endeavour to enforce TDS Compliance, is shortly mandating closure of “Short Payment defaults” in the quarterly TDS statements due to Unmatched Challans, before the Conso files can be downloaded from TRACES for the relevant statements. Following are key information to be noted in this regard:

· CPC(TDS) mandates to close the above default by tagging unconsumed challans, if available in CPC(TDS) system,through online correction (without digital signature). 

· In case there is no available challan for consumption, the deductor is required to first deposit the due tax in the bank and then the same challan will be available for tagging in CPC(TDS) system after around 3-4 days of deposit.

· CPC(TDS) mandates to close the above default by Matching or Payment of challans.

· The user will not be able to download Conso file for the relevant TDS statement until the above default is closed.

· The Online Correction facility of TRACES needs to be used for closure of the Short Payment default.

· User will subsequently be able to download the Conso file for relevant period only after the default is closed.

Why the Short Payment needs to be paid:

• CPC (TDS) intends to enforce compliance towards payment of taxes to the Government.
• In accordance with provisions of section 201(1) of the Act, where any person, including the principal officer of a company, who is required to deduct any sum in accordance with the provisions of the Act; does not pay, or after so deducting fails to pay, the whole or any part of the tax, as required by or under this Act, then, such person, shall be deemed to be an assessee in default in respect of such tax.
• As per the provisions of section 220 of the Act,
  1. Any amount, specified as payable in a notice of demand shall be paid within thirty days of the service of the notice.
  2. If the amount specified in any notice of demand is not paid within the period limited under sub-section (1), the assessee shall be liable to pay simple interest at one per cent for every month or part of a month comprised in the period commencing from the day immediately following the end of the period mentioned in sub-section (1) and ending with the day on which the amount is paid.
• If any person fails to deduct or pay the whole or any part of the tax, then, such person shall be liable to pay, by way of penalty, a sum equal to the amount of tax which such person failed to deduct or pay under Section 271C of the Act.
• Failure to pay tax to the credit of Central Government is punishable with fine as per the provisions of section 276B/ 276BB.
• Section 278A of the Act prescribes for punishment for second and subsequent offences, if any person has been convicted of an offence under section 276B.

What Actions to be taken:· During submission of request for Conso File, a message will be displayed, if there are Short Payment defaults in the TDS statement and instructions will be provided to submit Online Correction.
· Details of defaults will be provided during Online Correction process.
· In case of insufficient challans, please use Challan ITNS 281 to pay the demand or use any other Challan, which has adequate balance available.
· Submit an Online Correction using the functionality on TRACES to tag the challans with deductee rows. Login to TRACES and navigate to "Defaults" tab to locate "Request for Correction" from the drop-down list. You can refer to our e-tutorial for necessary help.
· Online Challan Corrections:

• A list of all Matched and Unmatched challans can be viewed by clicking the appropriate tab.
• Unmatched challans can be corrected and tagged to Deductee rows in the statement.
• The corrections in TDS statements can be raised even without Digital Signature.
• Correct KYC information needs to be submitted for the purpose of validation.
• All previous corrections pertaining to the statement should have been processed and the processing status can be verified from the Dashboard.

You are requested to take appropriate actions to avoid any inconvenience in absence of Conso files for carrying out any other corrections to your TDS statements.

For any assistance, you can write to ContactUs@tdscpc.gov.in or call our toll-free number 1800 103 0344.

CPC (TDS) is committed to provide best possible services to you.

CPC (TDS) TEAM

Notes:
· Please maintain updated email address and Contact Number on TRACES to receive regular periodic updates and guidelines from TRACES.
· Please refer to our FAQs and e-tutorials for detailed screen-driven assistance, before seeking further help.

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Correct your E-tds return online on tdscpc.gov.in-traces website

Good news for all deductors , TDSCPC (traces) website has enabled the online correction of tds returns on its website . This is a welcome step taken by Income tax department. Deductors can correct their e-tds return filed earlier through login at tdscpc website. At present two type of correction has been enabled at the website. First is pan correction and second is challan correction. Other type of correction cannot be done online and you have to adopt offline mode of submission of correction statement through TIN-FC.

Further to correct online e-tds return registration of digital signature of deductor /responsible person to deduct tax is mandatory.

Steps for Correction:
1) Login at www.tdscpc.gov.in
2) Register your digital signature, if not already registered, classII and Class III digital signature required.

Step-1: After login , open drop down menu (as shown in the picture ) under defaults heading ,click Request for correction link and select the quarter , year and form type (26q, 24q etc),fill the other details like Latest Provisional Receipt Number of the approved tds statement. Request will be registered and return will be made available for correction after some time.

Step-2: In this step, you have to check the status of the request filed in step-1, if status shown available for correction then click on link and start correction of the e-tds statement.

Presently Two type of correction can be done:
1. Challan correction (change in challan data )
2. Change in Pan (Pan correction )
Other changes cannot be done online; Select option 1 or 2 and do the necessary correction.

Step-3: After correction at step two, your return is ready for submission, to submit the correction statement digital signature of person responsible for deduction of tax is required. Apply the digital signature and submit the correction statement.

After submission you can check/track the status of request and status of your correction request will be shown by the system , it will be shown as accepted , in process , or processed or rejected as the case may be .

This request can be done through admin login or sub user login, further you can authorized other sub user for submission, if your digital signature has not been registered.
REGARDS

CA GOURAV MURARKA
RAJ LAMI TOWER 2ND FLOOR
SAI ASTHA HONDA BUILDING
NEAR ICICI BANK CHAS
BYE PASS ROAD CHAS
BOKARO STEEL CITY
JHARKHAND-827013

E-mail:gaurav_murarka88@yahoo.co.in

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