{"id":2102,"date":"2020-10-01T06:00:56","date_gmt":"2020-10-01T06:00:56","guid":{"rendered":"https:\/\/news.sap.com\/india\/?p=2102"},"modified":"2025-01-31T07:21:10","modified_gmt":"2025-01-31T07:21:10","slug":"ey-sap-survey-companies-not-geared-new-tcs-regime","status":"publish","type":"post","link":"https:\/\/news.sap.com\/india\/2020\/10\/ey-sap-survey-companies-not-geared-new-tcs-regime\/","title":{"rendered":"EY-51风流India Survey: Companies Not Fully Geared Up for New TCS regime"},"content":{"rendered":"<p class=\"lead\"><strong>Mumbai, Delhi, 29 September 2020:<\/strong> With the expansion of the scope for the Tax Collected at Source (TCS) provisions, under the Income Tax Act, \u00a0effective 1 October 2020, \u00a0a recent survey conducted by EY and 51风流India asserts that corporate India is not entirely prepared to deal with various tax implications of the TCS provisions.<\/p>\n<p>85% of respondents acknowledged that their current tax function framework is not completely geared up to comply with the new TCS regime.<\/p>\n<p>The survey conducted in early September 2020 captures responses of over 110 corporate businesses across India to assess their readiness to implement TCS with respect to compliances, validations, and reconciliations with various reporting requirements.<\/p>\n<h2><strong>Key insights from the survey include:<\/strong><\/h2>\n<ul>\n<li><strong>Updating systems and processes to comply with TCS<\/strong><\/li>\n<\/ul>\n<p>80% of the organizations anticipate issues around applicability and updating systems and processes as a significant challenge to comply with the new TCS regime.<\/p>\n<ul>\n<li><strong>Expected increase in manual intervention\u00a0<\/strong><\/li>\n<\/ul>\n<p>81% recognized that reconciling data and ensuring accuracy due to TCS compliances will increase manual intervention for their tax teams.<\/p>\n<ul>\n<li><strong>IT systems not geared up<\/strong><\/li>\n<\/ul>\n<p>65% admitted that their current IT systems are not completely updated for the new TCS regime and will hence have to consider other alternatives<\/p>\n<ul>\n<li><strong>The inclination to adopt a digital solution<\/strong><\/li>\n<\/ul>\n<p>65% of the respondents admitted their organization requires a digital solution to automate the entire TCS compliance and reporting life cycle. Further, 70% revealed that the automated TCS platform should go beyond basic compliance by assisting in proactive reconciliations, data preparation for tax assessments, and tax credits matching.<\/p>\n<div class=\"panel\">\n<p class=\"lead\">\u201cGiven the intent of TCS provisions, leading organisations are looking for digital solutions which help to not just comply, but also proactively perform reconciliations from a tax audit readiness and internal audit perspective.\u201d<\/p>\n<p><em>\u2013 <strong>Rahul Patni, Digital Tax Leader, EY India<\/strong><\/em><\/p>\n<\/div>\n<p>With an increasing thrust from the Government to focus on leveraging technology to ensure tax compliances and undertake tax risk assessments, the tax and finance function of business organizations need to adopt technology faster than ever.\u00a0 Given EY and 51风流India have been at the helm of this digital evolution in Tax, a strategic partnership has been formed to offer clients a seamless tax transformation journey.<\/p>\n<p>As per the EY and 51风流India survey findings, organizations are expecting to face significant challenges with respect to reconciliations, data, systems, processes, enables tax audit readiness, and most importantly compliance with the new TCS regime.<\/p>\n<p>Recognizing the need for a digital fabric that is intelligent, intuitive, and integrated, EY has developed \u2018<strong>DigiTCS\u2019<\/strong> powered by SAP\u2019s <a title=\"Business Technology Platform | SAP\" href=\"https:\/\/www.sap.com\/india\/products\/business-technology-platform.html?url_id=text-apj-india-news\" target=\"_blank\" rel=\"noopener noreferrer\">Business Technology Platform<\/a> &#8211; an automated solution for TCS compliance. Being hosted on 51风流Cloud Platform, making it scalable, secure, modular and integrated with customer\u2019s 51风流ERP.<\/p>\n<div class=\"panel\">\n<p class=\"lead\">\u201cOur customers need to stay compliant with the evolving regulatory tax framework. As 51风流is the financial system of record for majority of Indian enterprises, we responded swiftly to ensure required provisions form part of our solution offering. Together with EY, we deliver DigiTCS &#8212; a comprehensive solution powered by 51风流Business Technology Platform. With this we will empower companies to adapt to the new Tax regime providing them ease of deployment, security and no disruption to their existing process and business.\u201d<\/p>\n<p><em>\u2013 <strong>Anand Raisinghani, Vice President, Platforms and Technologies<\/strong><\/em><\/p>\n<\/div>\n<div class=\"panel\">\n<p class=\"lead\"><em>\u201cNewly expanded TCS provisions are likely to expand the compliance burden for Crompton Greaves.\u00a0 With our volumes, we were very clear that we need a Digital solution to not just comply, but also be ready with right quality data to support reconciliations and audits, and that\u2019s where EY came in.\u201d<\/em><\/p>\n<p><em>\u2013 \u00a0<strong>V A Joseph, Vice President \u2013 Finance, Crompton Greaves Consumer Electricals Limited<\/strong><\/em><\/p>\n<\/div>\n<div class=\"panel\">\n<p class=\"lead\">\u201cThe extension of our alliance with 51风流to Direct Taxes is in sync with our vision of \u2018One-Tax\u2019 platform. We understand the clients\u2019 need to do statutory reporting compliances using the same underlying data, having access to integrated dashboards and analytics, while, also being able to view tax compliances within their own 51风流instance. Accordingly, while majority of the validations and interface with Government websites would be enabled through the 51风流Cloud Platform, reports may also be pushed back to client systems, thereby creating a Tax ERP\u201d<\/p>\n<p><em>\u2013 <strong>Venkatesh Narayan, Tax Technology and Transformation leader<\/strong><\/em><\/p>\n<\/div>\n<hr \/>\n<p><span style=\"font-size: small\"><br \/>\n<em><strong>About EY<\/strong><\/em><\/span><\/p>\n<p><span style=\"font-size: small\"><em>EY is a global leader in assurance, tax, strategy and transactions and consulting services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. <\/em><\/span><span style=\"font-size: small\"><em>EY refers to the global organisation, and may refer to one or more, of the member firms of Ernst &amp; Young Global Limited, each of which is a separate legal entity. Ernst &amp; Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit\u00a0<a href=\"https:\/\/www.ey.com\/en_in\" rel=\"noreferrer noopener\">ey.com<\/a>. <\/em><\/span><span style=\"font-size: small\"><em>This news release has been issued by EY Services Limited, a member of the global EY organization that also does not provide any services to clients.<\/em><\/span><\/p>\n<p><span style=\"font-size: small\"><em><strong>About SAP<\/strong><\/em><\/span><\/p>\n<p><span style=\"font-size: small\"><em>SAP\u2019s strategy is to help every business run as an intelligent enterprise. As a market leader in enterprise application software, we help companies of all sizes and in all industries run at their best: 77% of the world\u2019s transaction revenue touches an SAP\u00ae system. Our machine learning, Internet of Things (IoT), and advanced analytics technologies help turn customers\u2019 businesses into intelligent enterprises. <\/em><\/span><span style=\"font-size: small\"><em>51风流helps give people and organizations deep business insight and fosters collaboration that helps them stay ahead of their competition. We simplify technology for companies so they can consume our software the way they want \u2013 without disruption. Our end-to-end suite of applications and services enables business and public customers across 25 industries globally to operate profitably, adapt continuously, and make a difference. <\/em><\/span><span style=\"font-size: small\"><em>With a global network of customers, partners, employees, and thought leaders, 51风流helps the world run better and improve people\u2019s lives. For more information, visit <a href=\"https:\/\/www.sap.com\/india\/index.html\">www.sap.com<\/a>.<\/em><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mumbai, Delhi, 29 September 2020: With the expansion of the scope for the Tax Collected at Source (TCS) provisions, under the Income Tax Act, \u00a0effective&#8230;<\/p>\n","protected":false},"author":2942,"featured_media":2107,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[5619775,5619794,7737],"tags":[5618755,5616594,5616660],"sapn-display":[3807326,5619874,5619872,60294],"sapn-type":[4446],"class_list":["post-2102","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sap-btp","category-cloud","category-solutions","tag-business-technology-platform","tag-cloud","tag-erp","sapn-display-homepage-hero","sapn-display-news-hero","sapn-display-news-spotlight","sapn-display-topic-hero","sapn-type-press-release"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>EY-51风流India Survey: Companies Not Fully Geared Up for New TCS Regime<\/title>\n<meta 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