A Snapshot of VAT Management Challenges in India

Value Added Tax (VAT) compliance and returns management can be complex, costly and challenging for organizations in India. Organizations have perpetually limited the use of Information Technology for VAT compliance to basic ERP configurations and ERP report customization. The latest approach to managing VAT compliance is majorly unorganized and unstructured.
One of the major challenges is the absence of a comprehensive and integrated database and processing solution. Compliance with varying provisions in each State in a predominantly manual VAT compliance is yet another challenge. Moreover, it is also necessary to ensure that tax positions adopted have been implemented as envisaged across States. Organizations even face a lack of audit trail of VAT calculations and return compilation.
Maintenance of documentary trail for deductions claimed such as goods return and using correct tax codes for accounting input tax credits in necessary for VAT compliance. Organizations that lack technology support for managing input tax credits usually end up bearing working capital inefficiencies. Moreover, lack of MIS for issue, collection of forms for stock transfer, concessional rate of tax, etc can also cause a hindrance at times. Settlement of VAT returns with the accounting records during assessments is also important.
At Udyog, our products deliver a wide range of services, the VAT services include:
· Pre-defined list of sale & purchase classifications
· Complete transaction tracking till annual returns
· Printing of tax invoices and VAT computation reports
· Better VAT-returns management
· VAT statutory reports for all states
· Monthly returns computation
· Itemized sales, sales return and purchase registers
· Sales tax and purchase tax summary & details

We have some highly skilled tax professionals. We believe in achieving and maintaining service commitment standards and we also assure greater flexibility for growth. We urge to patiently listen and thoroughly understand our clients’ needs, and work in sync with them to suit their business needs. We own a dedicated infrastructure and team that offers world class support services for our clients.

By Udyog Software Marketing Team

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