What is TDS?
Tax Deducted at Source (TDS) is a taxation system of India under which the recipient of goods or services (payer) pays taxes at source on behalf of the payee to avoid tax evasion by taxpayers.
How do a deductor and Alibaba Cloud confirm the withheld TDS?
A deductor is required to pay the TDS to the tax bureau before the 7th day of the following month of payment or accrual. For the payment or accrual in March, the deductor is required to pay the TDS before April 30, that is, the end of the fiscal year. The deductor does not need to provide the deductee information at the same time. Instead, the deductor can file a TDS statement on a quarterly basis before the end of the month following the quarter. The deductor can have a batch download of Form 16A, that is, the TDS certificate, 15 days after the TDS statement is submitted, with one copy for each deductee per quarter. At the same time, a deductee can download Form 26AS, a summary of the withheld TDS, from the TRACE portal of the tax bureau. Each deductee has one copy, which covers all deductors. Both the deductor’s Form 16A and deductee’s Form 26AS are available for download at the website of the tax bureau at the end of each quarter. The following figure shows the timetable of TDS-related activities, such as the payment or accrual and the generation of Form 16A.
How does Alibaba Cloud return the TDS to a deductor?
Alibaba Cloud downloads Form 26AS from the website of the tax bureau each quarter to obtain the information about all taxes withheld for Alibaba Cloud.
Alibaba Cloud will return the tax paid by a deductor on behalf of Alibaba Cloud to the deductor’s Alibaba Cloud account according to the TAN No. in Form 26AS. To make sure that the tax can be returned to the correct account, you need to bind your company’s TAN No. to an Alibaba Cloud account.