KredX Process 101: Filing Vendor TDS For FY 2018-19

KredX Process 101: Filing Vendor TDS For FY 2018-19

As India’s leading invoice discounting platform, we focus our efforts on providing seamless customer service by keeping our processes transparent and simple.

In keeping with this, we wanted to familiarise our vendors with the TDS process for FY 2018-19. As a norm, KredX strictly adheres to the tax guidelines laid out by the government and as such we have outlined the details of the TDS process on the platform to ensure a hassle-free experience with us.

Please Note: This process is only valid for FY 2018-2019.

Vendor TDS Process For FY 2018-19

The vendor is required to make two types of payments on the KredX platform:

  • Interest Payments to Investors

For investors, this payment falls under section 194A i.e. Interest other than “Interest on Securities”.

  • KredX Fees

For KredX fees, this payment falls under section 194J i.e. Fees deducted for providing professional or technical services.

 

Submitting Your Form 16A After Filing TDS

To submit Form 16A, vendors are required to follow the steps mentioned below:

  • Log into your KredX dashboard
  • Go to the TDS tab, where you will see the following options:
  1. TDS Detail: Contains all TDS details pertaining to all Investors in a financial year.
  2. Form 16A Upload: This lets you submit the Form 16A as a PDF or as a Zip file. It will also contain the status of your uploaded Form16A.
  3. Refund Detail: This field provides information on money refunded for previously uploaded and verified Form 16As.

 

Important Information Regarding Form 16A

The last date to upload Form 16A for the financial year 2018-19 is 30th June 2019.

Post 30th June 2019, any TDS amount held by KredX for FY18-19 whose proofs are yet to be submitted, will then be refunded to the respective investors. Every information regarding TDS filing is shared on the KredX Platform under the TDS tab.

Please note that KredX is not liable for any encumbrances at any given point.

In case a vendor fails to file their TDS correctly, the vendor will be required to follow the following as per the scenario:

  • Under-Filing: The vendor shall re-file TDS by submitting the rectified Form16A on or before 30th June 2019. Failing to do the same will initiate a refund of the balance amount to the respective investors after 30th June 2019.
  • Over-Filing: The vendor shall re-file TDS by submitting the rectified Form16A on or before 30th June 2019. Failing to do the same, any cost incurred by KredX will result in a deduction from the vendor’s next deal/pass through.
  • Failure To File: If a vendor fails to submit Form16A for all the investors for FY18-19 by 15th June 2019, the vendor will have limited access to the KredX platform restricted to only the TDS module from 15th June 2019 to 30th June 2019

The above-mentioned process is only valid for FY 2018-2019. An updated TDS process will be followed from FY 2019-20 regarding which a formal communication will soon be issued to all our patrons at a later date.

As always, in case of any queries regarding this process or any other, patrons can reach out to us at care@kredx.com.