INDIA COMPLIANCE — Q&A
Q: What are the 10 GST treatment categories in Fincelo?
Q: What TDS sections does Fincelo track? Fincelo tracks all 13 relevant TDS sections:
Important — 194J split: Post Budget 2020, Section 194J was split into
194J(a) for professional services (10%) and 194J(b) for technical services (2%).
SaaS subscriptions typically fall under 194J(b) at 2%.
Fincelo defaults all new customers to 194J(b).
Per-customer multi-section config: a customer can have multiple TDS sections.
Example: 194J(b) on subscription fees + 194C on implementation work — tracked separately.
Q: How does 26AS reconciliation work in Fincelo? Each TDS deduction record has a
form_26as_matched flag.
Finance downloads the 26AS from the IT portal and reconciles:
- Expected TDS (invoice × rate) vs Actual TDS (what customer deducted)
- VFincelonce is auto-calculated per deduction
- Once matched against 26AS, status moves to ‘reconciled’
- Disputed entries (vFincelonce > ₹1) flagged for follow-up
v_tds_summary view gives total expected, total deducted,
total certified, and vFincelonce by customer, section, and financial year.
Q: How does PO management work for government / PSU customers? When a customer has the PO-required flag set:
- Invoices are held as Proforma until a PO is received
- Proforma has no invoice number, no GST liability, not in GSTR-1
- On PO receipt: Proforma converts to Tax Invoice (same record, in-place)
- Revenue recognition can be backdated to service start date with CFO approval
- Full audit trail: who converted, when, which PO number triggered it