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State Bank of India Financial Reporting & Taxation Department, 31d Floor, Corporate Centre, Sate Bank Bhavan, Madame Cama Road, Nariman Point, Mumtai- 400 024 FRGell_ Tel. : 022-22740371 / 22740372 | Fax : 022-22023487 | E-mail : frt.dept@sbi.co.in Tax Cell Tol. : 022-2274 0363 / 2274 0364 | Fax : 022-22023487 | E-mail : tax@sbi.co.in S.Tax Cell Tel. : 022-2274 0347 / 2274 0322 | Fax : 022-22023487 | E-mail : servicetax.t@sbi.co.in The Chief General Manager 01.04.2017 State Bank of India Local Head Office CCFRT-TAX:03 All LHOs/CAG/MCG/SAMG/SSB/GMU KOL/CAO/OL&CS/ FIBU/ PF & Leasing/CSD/ Marketing & Cross Selling/A&S/IBG Dear Sir/Madam, TDS CENTRALISATION FROM F.Y 2017-18 GENERAL INSTRUCTIONS, With a view to strengthening the tax compliance function and better customer service, our Bank has decided to centralise TDS compliance of whole bank level at Corporate Centre, Mumbai from 1" April 2017. As the statutory compliance will be ensured at central level, branches will be free from the hassles related to TDS remittance and TDS retum filing there by providing better customer service. Centralized filing of TDS return under few Central TANs will be done through an electronic platform at central level from the financial year 2017-18. 2. Present Scenario:- At present TDS compliance at the branches/offices involves mainly the following functions, carried out by the concemed individual branches/offices: @) Deduction of Tax at Source (TDS); b) Deposit of TDS; Cc) Filing of the TDS statements (Form 24Q/26Q/27Q); d) Issuance of TDS certificates to customers/vendors/employees; e) Submission of Forms 15G/15H returns to the Income Tax department; f) Dealing appropriately with various notices/orders received from the Income Tax department; g) Any other work relating to TDS compliance. Page tof 43. New System for TDS Centralisation - TDS Reporting System (TRS) a) As a move towards centralization of TDS returns of the Bank, a new tool TDS Reporting System (TRS) is developed to manage TDS deducted by the various source systems as below: TDS on Interest on Deposits in Core Banking Solutions (CBS) TDS on Vendor Payments in Vendor Payment Systems (VPS) TDS on Salary Payments & Staff Pension in Human Resource Management System (HRMS) iv. TDS on Pension Payments in Central Pension Processing Centre (CPPC) b) TRS shall integrate with CBS, VPS, HRMS & CPPC and these source systems will share the data with TRS on regular basis. On the basis of tax deduction effected on payments made through aforesaid source systems, TRS shall prepare the monthly TDS remittance and quarterly TDS retums under Central TANs. ¢) The TDS remittance, generation of retums and filing of returns will be done centrally at the Corporate Centre. d) TRS application will be accessible to all the SBI branch through CBS B@neslink Under common login apps. Branches can also view TDS deductee details and TDS remittance in TRS. e) Branches/offices need fo ensure entry of the correct details related to customers/ vendors/ employees/ pensioners in the respective source systems, so that appropriate tax is deducted. Process Flow for TDS Centralisation:- TDS deducted from the each streams viz., CBS, VPS, HRMS and CPPC will be parked in the respective branch's new TDS BGL accounts. Following five new BGL accounts for TDS are available at all branches/offices:- SrNo | Siream|Name of the BGL at Branch/Operating unit |New BGL allotted level 1 | CBS | TDS on interest of deposi-NEW 4898047 2 | VPS | TDS on payments made for Rent-NEW 4898048 3 | VPS [TDS on payments-VPS(Other than Renf]-NEW 4898049 ‘4 | HRMS | TDS on payments to employees-HRMS-NEW ‘4898050 5 | CPPC | TDS on Pension payments -NEW 4898051 Page 2 of 44) The monthly TDS deduction data of each stream will be uploaded in the TRS. b) At the month end, the balance in all branches TDS BGL accounts will be transferred to Central TDS BGL at Corporate Centre for onward TDS remittance to goverment. c) MAPPING OF NEW TANS: Bank has allotted separate TAN for each stream viz. HRMS, CPPC and VPS. However, with regard to CBS stream, due to voluminous CBS data, all branches/offices in a network of Circle shall be mapped to single TAN. TAN mapping will be done as under- Stream TAN Mapping HRMS MUMSB6151C cPPC MUMS86152D VPS (incl. Rent module) MUMS86153E ces * TAN will be mapped to each branch/office based on network in the circle. * All the branches under CAG/MCG/SAMG/CC establishments will be allotted single TAN each. Miscellaneous data MUMS86154F (For payments outside the 4 | streams) The summary of mapping of the TANs with the branches for CBS stream is given in Annexure-A. The branches/offices shall be mapped to these new TANS in CBS as well as TRS from the backend w.e.f. 01.04.2017. d) Monthly TDS remittance shall be made centrally by FRT department under Central TANs through TRS. e) Miscellaneous data:- For TDS deducted on any payments which are made outside the 4 streams [mentioned in 3(a)(i) above], the branches should ensure the following: i, TDS to be deducted manually ii, Remittance of such TDS manually under a specific TAN allotted for such payments (i.e. MUMS86154F) on or before the due date. il, Feed the requisite TDS data (deductee details as well as challan details) in TRS through specific screens provided, The detailed work flow is furnished in the User Manual of TRS. f) TDS retums will be submitted through TRS quarterly under central TANs, on the basis of data provided by all streams on monthly basis. xz Page 3 of 45. g) TDS certificates (164 and Form 16 (part-A)] shall be downloaded from the TRACES site at quarterly/annual interval under Central level and shall be available to the branches/offices duly authenticated through digital signature. Branches/otfices have to provide these TDS cerlificates to its customers/Vendors/Employees/ Pensioners. h) Old TANs of the branches should not be used for any fresh TDS credits wef. 01.04.2017. However, with regard to TDS deducted fill 31st March, 2017, branches have to remit the same with Goverment under the old TANS. Branches/offices also need to file the TDS retum for the Q4 of F.Y. 2016-17 as per extant instructions. Please note that under no circumstances old TANs fo be used for TDS deductions from the period on or after 1 April 2017. In order to smooth rollout of TDS centralization and to guide the branches ‘on the TDS centralization and new functionality i.e. TRS, we provide the following documents: 6 @. Action points/checklist_ for the branches regarding the centralisation of TDS (Annexure - B). b. User manuals on TRS - placed in State Bank Times->Manvals c. Standard Operating Procedure (SOP) for branches on TDS centralization - placed in State Bank Times->Manuals d. FAQs on TDS centralisation - placed in State Bank Times>Manuals e. The detailed TAN mapping of branches - placed in State Bank Times->Departments} ->Financial Reporting and Taxation> Direct Tax>Tan Mapping Please advise all branches/offices under your administrative control, to meticulously follow the aforesaid instructions on TDS centralisation, for smooth rollout. Yours faithfully, et mney Qn SM (Taxation) For Chief General Manager (FR&T) Encl: As above. Page 4 of 4Annexure-A StNo TAN Stream Circle Network 7_ [rosso TIRMS hate Bane 2 [ woMss6is20 ‘CrPC——Fwhote Bank 3 uwse61536[ VPS Gna Ren) whote wank + wtossseisar Mise ote Bank 5 Dwovsserasc IARIMEDABAD, m2 &PMuMsseis6a fee 7 unisset575 [ARMEDABAD 2 = Darusseisic [Andhra Pradesh 1 [5 Birexessrs90 Landa Fades 2 oP wurwsssi608 Eangalore Bel TP MOMsser6IF angalore 2 12 PMunsseieac Bangalore 3 1B MuMsast6sA Bhopal rH 1 MUMSs6r696 ishopal 2 1 Munsseiesc [shop 3 16 munessc1660 Fcrancigar te 17 MUMss6i67® [Chandigarh 2 1a) MUMS86I68F fekandigart 3 1 MuMss6i68c [Gkandiga a 20_ | MUMSs6170A IGhennat Oe a1 P MUMSS6I7I6 IGhenrat 2 2 | MuMsssir2c etn 7 oP Muns861730 et 2 2t_|_MUMS86I74E Det 3 25_|-MUMSS6I75F ba a 25 MUMSS6I766 fGawahat z 27 MUMS86i77A 2 2a_ | MUMS861786 3 25 unissci79c wn spur i s0__| MUMSS61600 fa lap z 31_] MUMss6181E U [Kolkata O81 Sa MuMsseisar Kolkata 2 5 | MUMss6188G Kolkata 3 MUMSS6IB5A know Be 35 MUMsse1655 acknow 2 36 MUMSREIBEC know 3 37 MUMS Iam aes 5a | MUMSes18sE iumbar z 33 | MUMsse199F Numba 3 70 PMunisis0c Mumba 4 aL MUuse55698 Mamba: 5 2_LMuNses70F Paina 1 3 MONBISTIG Pana z | MUMISS9S72N Pana 3 35 MOMESr8 Fetngana z 46_| MUMS89574C | felangana 2 27 MUMs9957=0 [thiravananthaparan [1 | MuMseesr6e [hiravananthapuramn [2 3 Moser Hhiravananthapuran | 3 50_[ MUMS8I5786 Bhubaneswar i S1_[ MUMSSS79A Bhubaneswar 2 52 | MOMEeS808 leac 33_ | MUMSI958IC lec Esaihmens 5 MOWSI95858 hues 55_ | MUMSISSaF fac Person payments ofall | aay certwhile ABs (Manual) JAN ABs Note: Network 0 includes LHO offices of Circles Other Admin offices are part of respective NetworksANNEXURE - B ACTION POINTS /CHECKLIST FOR BRANCHES/OFFICES 1) Old TANs of the branches should not be used for any fresh TDS credits w.e-. 01.04.2017. 2) For deduction of appropriate taxes all the branches/offices should ensure the following:- ) Correct PAN no. is available in the source system b) Proper data entry in the source system ¢) Correct data entry with respect to Form 15G/H d) Correct data entry with respect to Exemption/concession certificates e) Flagging of per se exempt customers in CBS f)_ Exemption/concession cerlificates and Form15G/H should bear new respective central TANs allotted to the branches. 3) In case of any erroneous deduction of Tax, branches have to refund the TDS to customer/vendor/pensioner in the respective source stream only: ) TDS on interest on deposits in CBS: Branches can refunds the TDS to customer through appropriate screen in CBS, fil 15 days after the end of the quarter, if sufficient balance is available in respective TDS BGL accounts. b) IDS on Vendor payments in CBS: Branches can refunds the TDS to vendor through appropriate screen in VPS till month end, if sufficient balance is available in respective TDS BGL accounts. c) TDS on Pension payments in CPPC: Branches can refunds the TDS to Pensioner through appropriate screen in CPPC till month end, if sufficient balance is available in respective TDS BGL accounts. d) TDS refunds will not be available for HRMS. Page 1 of 34) TDS refund for the month March 2017 will be allowed till 28.04.2017 and any TDS refund for the month April 2017 will be allowed only from 01.05.2017. 5) Branches/offices will handle customer queries with the help of TDS data available in TRS and respective source systems. For further clatification on any issue, the branches/ offices can contact the concemed nodal department set up at each Circle. 4) Branches/offices will be provided the data being reported in Quarterly TDS Retums for their approval through TRS, in order to ensure completeness and correctness of data, including refund, if any. In case the sign-off not received of any branch till 18 days from the end of quarter, TRS will force sign-off the data of these branches for preparation of consolidated TDS Returns. 7) TDS Certificates:- a) Generation of TDS Certificates will be done centrally which will be available for download to the branches through TRS as well as in the report folder of Branches/Operating Units. b) The branches/offices shall issue the TDS cerfificates (Form 16A), to customers/vendors the persons on whose account tax has been deducted for the FY 2017-18. ¢) Form 16 (part—A) willbe downloaded from the TRACES site at Central level and shall be provided to HRMS and CPPC department, for ‘onward distribution to Employees/ Pensioners alongwith Form 16 (part-8). 8) All TDS issues relating to the period prior up to 31.03.2017 are required to be handled by Branches/Offices/Circles as under: a) Branches/offices should ensure remittance of the tax deducted in March 2017 to the Government account within the prescribed time limit under old TANs. Page 2 of 3 or Gao Sageb) The old BGLs for TDS should be zeroised by 30" April 2017 (i.e. due date for March 2017 TDS deduction). Cc) File the quarterly TDS statements (Form 24Q/26Q/27Q) for the quarter ending March 2017 correctly and timely. d) The branches/offices shall issue the TDS certificates (Form 164/16), to customers/vendors/employees/pensioners on whose account tax has been deducted for the FY 2016-17 e) Revise Retums (if any) for period up to F.Y. 2016-17. f) Zeroising of TRACES default for the period up to March 2017. g) Handling of nofices/appeals with IT department for the period up to March 2017. ZARI\AILHO\ApANDS CEMRALSATON ANNEXE Box Page 3 of 3