Mastering TDS Compliance and Reconciliation with SAP: A Comprehensive Guide

 Navigating the Complexities of TDS Compliance in India

In the intricate landscape of Indian taxation, Tax Deducted at Source (TDS) compliance stands as a critical element. This comprehensive guide explores how SAP software solutions play a pivotal role in simplifying TDS compliance and reconciliation processes for businesses operating in India.

Understanding TDS Compliance: A Primer

The article begins by providing a foundational understanding of TDS compliance, elucidating the key concepts and legal provisions governing TDS in India. It highlights the significance of accurate deduction, timely payment, and meticulous record-keeping to stay compliant with tax regulations.

Challenges in TDS Compliance: Unraveling the Complexities

Delve into the challenges faced by businesses in ensuring TDS compliance. From varying TDS rates to intricate deduction rules, discuss the complexities that organizations encounter and the potential consequences of non-compliance.

Role of SAP Software Solutions in TDS Compliance

Highlight the transformative role that SAP software solutions play in addressing TDS compliance challenges. Explore how SAP's robust modules streamline TDS deduction, calculation, and reporting processes, ensuring accuracy and adherence to statutory requirements.

Key Features of SAP TDS Modules: A Closer Look

Provide an in-depth exploration of the key features offered by SAP TDS modules. Discuss functionalities such as automated TDS rate updates, real-time integration with financial modules, and advanced reporting capabilities that empower businesses to stay on top of TDS compliance.

SAP TDS Reconciliation: Bridging the Gap

Discuss the importance of TDS reconciliation in ensuring the accuracy of financial records. Showcase how SAP's reconciliation tools enable businesses to match TDS deducted with TDS deposited, facilitating a seamless audit trail and minimizing the risk of errors.

Real-world Case Studies: Success Stories of SAP-Enabled TDS Compliance

Illustrate the impact of SAP software solutions through real-world case studies. Share success stories of businesses that have successfully navigated TDS compliance challenges with the aid of SAP's advanced features and modules.

Ensuring End-to-End Compliance: Integration with GST and Other Modules

Emphasize the holistic approach of SAP software solutions by exploring their integration with other crucial modules such as Goods and Services Tax (GST). Discuss how this integration ensures end-to-end compliance and reduces the burden of manual data entry and reconciliation.

Training and Support: Empowering Users for Optimal TDS Management

Highlight the training and support mechanisms provided by SAP to empower users in effectively utilizing TDS modules. Showcase the user-friendly interfaces, documentation, and training programs that contribute to seamless TDS management.

Looking Ahead: Future-Ready TDS Compliance with SAP

Conclude the article by discussing the future trends and innovations in TDS compliance. Address how SAP continuously evolves to adapt to changing tax regulations, positioning businesses for sustained compliance in the dynamic Indian tax landscape.

Conclusion: Mastering TDS Compliance with SAP

Summarize the key takeaways, emphasizing how SAP software solutions emerge as a game-changer in mastering TDS compliance. Encourage businesses to leverage SAP's capabilities for streamlined processes, reduced risks, and enhanced financial accuracy in the realm of TDS compliance.

This comprehensive guide not only elucidates the complexities of TDS compliance but also positions SAP software solutions as indispensable tools for businesses aiming for seamless and accurate TDS management in India.

Why do you need a Sap Managed Service Partner?

 Enterprise resource planning software like SAP ERP, including SAP S4 HANA and SAP ECC, is critical for every growing company.

But keeping up the pace with the highly volatile and fast-paced changing business requirements in today’s market can be complex and time-consuming for you, even after spending a handful of money.

Thus, it becomes extremely important to look for such SAP Managed Service Partner which can serve you with various benefits like:

• Simplicity in the management
• Upgraded efficiency
• Well-built security
• Master support and so on

Let’s First Clear Basics About The SAP ERP And Its Need

In traditional times, business models used to have a decentralized way to store and work over data. It was difficult for representatives from different company functions and departments to connect and access each other's data. As a result, the duplication of data across divisions increased IT costs and the risk of errors.

Thus, it became the need of the hour to bring centralization in managing data and integration of business processes to create a smooth and error-free business flow.

Without a solution like SAP ERP, there would be:

• No flexibility in the working structure
• There is no possibility to access multiple data
• No chance to integrate data with several databases

and so on, which means that you are going to miss out on many such functionalities and ultimately it will have a big impact on the business flow and in managing the various corporate areas.

That’s why SAP ERP came into being as an enterprise resource planning solution to provide a unified solution for a company’s various operations by centralized data management.

This supports businesses in managing complicated business cycles so that they can:

• Speed up work processes
• Enhance functional performance
• Increase efficiency
• Improve customer interactions
• Last but not the least, i.e., profits

Top SAP ERP Challenges And How To Deal With Them

However, like every other great technological platform, for SAP ERP also a high level of expertise is required to implement and manage the SAP ERP landscape.

Most of the time, many firms want these applications to function continuously but on the same page, they struggle to seamlessly and successfully manage their SAP ERP frameworks.

Moreover, SAP ERP applications need considerable care and feeding. When they are combined with other programs to ensure that they function properly every day which is not a cup of tea for everyone.

The challenges one might face can be:

• Lack of internal IT personnel access
• Lack of SAP specialist abilities
• Shifting business requirements
• Geological consequences
• Increased business constraints, and so on

But to deal with these challenges, you need the help of a SAP Managed Service Partner.

They are known for supporting IT groups to be in line with the business demands and effectively keep up with their SAP ERP requirements.

SAP Managed Services partner, like Webtel, is an expert in managing the SAP ERP landscape. It helps proactively in screening and keeping up with the essential SAP ERP applications to ensure uprightness and accessibility as and when required.

SAP managed service partner brings a noticeable improvisation in SAP ERP management by focusing on both specialized and functional components and helping enterprises fulfill their present and future needs.

So, if you are also looking for:

• Smooth and seamless business operations
• Reducing your total cost of ownership
• Scaling up the operations effectively
• Achieving Your Business Goals

Then, you must look for a SAP Managed Service partner, like Webtel, who can help your company to achieve the same with expertise.

Webtel: Your Promising SAP Managed Service Provider

Webtel as a SAP-managed service partner not only defines the support model but also believes in building an approach for leveraging SAP ERP. It enables transformation centered on business outcomes via patched-up solutions and consulting.

Therefore, to accelerate your SAP ERP application portfolio with the competency of experts, technology, and innovation check out Webtel’s SAP ERP Services by clicking here.

If you have any questions or doubts regarding the same, then let us know by commenting down below to get it answered or resolved by one of the leading industry experts.

How to make the most out of implementation of e-invoicing in KSA?

 E-invoicing is the talk of the town in KSA nowadays. It is considered one of the foremost among the advanced technologies by putting a full stop to paperwork and the complimentary manipulations.

Implementation Of e-Invoicing In KSA is a known general feature going hand in hand with the digital transformation for all the transactions and services. It is not less than a celebration by being a boon to not only the consumers but also the economy.

Unfolding the Pro Side of e-Invoicing KSA Implementation

E-invoicing in KSA came into the limelight because of its constructive outcomes observed in recovering and protecting the constant flow of revenues for the betterment of the economy. KSA e invoicing is an antidote to the major percentage of transactions giving rise to shadow economy practices, monetary leakages, and commercial privacy.

When we take merchants into consideration, the obvious positive effects are observed in the reduction of cost, developed financial transactions, managed accounting transactions, and reduced paper consumption. Similarly, it has its visible reflection by being beneficial in line with consumers as well.

KSA e invoicing has the capabilities to recover the losses, even that of non-oil monetary recoveries causing fluctuations in oil prices, which can be put to raise the standards of sustainable development. All in all, E-invoicing in KSA is the true savior of the public treasury and national economy.

The Top 3 Beneficiaries of the Implementation

Managing the paper-based invoices is a very heavy job involving its own set of consequences. Proper documentation, preserving of data can be very cumbersome. Also, physical papers are prone to theft, loss, fire, and whatnot. So, to overcome these challenges e-invoicing in KSA has finalized regulations regarding the E-invoicing system keeping in mind the numerous benefits, some of which are:

Government: The Govt. of KSA will be directly benefited from this model since there will be greater transparency and real-time update regarding the sale and purchase transactions. Govt. will have a greater hold on the market condition by having close supervision over the transactions.

Taxpayers: E-invoicing system will save documentation and manual efforts of the taxpayers and will save their non-compliance cost as well. Business owners can now easily delegate the task of invoice to the lower level of management since there will be very less chances of errors or fraud. With the real-time update, managing the transaction and information will be quite easy.

Economy: E-invoicing system will lead to fair competition and will also improve consumer protection since any inflated price charged or any seller trying to mislead the customer in any manner, the government will have the direct watch over it, which can further lead to fines etc.

Let E-Invoicing Be Your Cup of Tea with Web ‘e’ Invoice of Webtel

To leverage the maximum potential of Implementation Of E-Invoicing in KSA, you must have a look at Webtel's hassle-free e-invoicing solution in KSA is compatible with well-known ERPs such as SAP, Tally, Microsoft Dynamics, Navision, Oracle and other ERPs and Accounting Softwares. It is an all-in-one e-Invoicing Integrated Solution catering to the ‘e’ Invoicing Compliance Requirements of KSA in phased manner. Webtel ‘e’ Invoicing web utility helps in generation and printing of simplified invoice or tax invoice and printing of QR code either through single entry or in bulk entry mode as per requirement of Phase I to be implemented from 4th December, 2021. The utility also provide the controls to stop tempering of ‘e’ invoices.

Webtel ‘e’ invoice utility is also capable of generating E invoice and notes in XML, PDF with embedded XML as per the requirements through Web Utility or Seamless integration with ERPs. It also provides for generation of UUID providing multiple auto validation of data to ensure compliance of the law. For simplified ‘e’ invoices and notes, business will need to register with ZATCA to obtain a Digital Signature Certificate (DSC) to request Cryptographic stamp Identifier for its E invoicing Solution. Webtel ‘e’ Invoicing solution proposes to establish a connection with an external APIs between taxpayer’s E-invoicing solution and ZATCA to periodically upload simplified e-invoices and E-notes, as well as transmit e-invoices and E-notes to receive a response in real time. The ZATCA will provide the details around timelines, targeted groups and implementation phases of the integration in subsequent resolutions.

10 Common Mistakes to avoid while filing GSTR

 Since the commencement of GST in 2017, taxpayers and tax practitioners have been committing some common errors that often result in heavy penalties and late payment fees. In this blog, we will be discussing some common errors made by taxpayers while filing GST returns, the penalties that follow after making such mistakes and how can a taxpayer avoid mistakes while filing GST returns.

1. Incorrect ITC claim and reversal

Input Tax Credit (ITC) is the amount by which the tax liability of a business can be reduced when making sales. As per the GST norms, booking and availing of ITC is subject to certain rules and conditions, and a taxpayer is required to report the correct value of input tax credit while filing GST returns. In case of claiming the incorrect value of ITC or claiming blocked credits under GST, the amount of difference needs to be paid along with the applicable interest in the following month’s return.

2. Non-Payment of GST in RCM

Under the Reverse Charge Mechanism (RCM), the chargeability of tax gets reversed from the seller to the buyer, i.e. the buyer of goods and services becomes liable to make payment of tax. There are certain types of businesses that are subject to RCM on certain supplies under GST. The supply service by goods transport agencies is one of the most common supplies in RCM, which must be made by the buyer. Moreover, the supplier need not make payment of GST on such supplies to avoid double payment of taxes.

3. Not mentioning Exempted Turnover in GST Returns.

Zero-rate supplies do not have any effect on the GST liability of the taxpayer. However, the same must be reported while filing a GST return. Every business registered under GST must report the exempted or Nil-rated sales in GSTR 3B and GSTR 1 since the non-disclosure of the same would be considered concealment of facts and shall be subject to penalties.

4. Availing of the Composition Scheme benefits without being eligible

The Composition Scheme under GST was introduced to provide relaxation to small taxpayers so that they can get rid of the complexities of filing GST. This scheme is applicable to taxpayers with a turnover of less than Rs.1.5 Cr. Availing the benefits of the composition scheme in case of ineligibility can lead to unplanned GST liabilities.

5. Paying tax under the wrong GST category

There is a list of different heads in GST, under which the tax report must be filed. However, taxpayers often make the mistake of furnishing GST liabilities or ITC under the wrong GST category. Moreover, at times the taxpayers make GST payments and interest under the wrong heads. Such mistakes while filing GST returns can lead to unfavorable cash flow and other calculation errors.

6. Not making GSTR-3B and GSTR-1 reconciliation

It is important for taxpayers to reconcile GSTR-3B with GSTR-1 on a monthly basis to ensure accuracy in return filing and avoid any mismatch in the filing process. Such mismatch of data while filing GSTR-3B and GSTR-1 can lead to revenue loss and notices from tax authorities and must be carefully assessed by the taxpayer.

7. Non-Filing of Final Return GSTR-10.

In case a registered business decides to surrender the GST number, it is mandatory to file a GSTR-10 final return. In case of not filing GSTR-10 on or before the specified due date, the taxpayer is allotted a time period of 15 days to file the final return. Failure to do the same results in the issuance of final cancellation orders with the details of tax payable and late fee.

8. TDS and TCS Credit Not claimed by Taxpayers

As per the provisions of GST, TDS/TCS credit received is provided for all taxpayers from whom tax has been deducted or collected at source by registered TDS deductors/TCS collectors respectively. After deduction/collection, all the deductors/collectors are required to file GSTR-7 or GSTR-8 respectively. The TDS is reflected in the Electronic Cash Ledger of the assessee and shall be used to pay the tax liabilities and RCM liability by the taxpayer. Such TDS/TCS needs to be deposited to the credit of the government and shall be claimable by the recipient henceforth.

9. Errors while uploading data invoice-wise in GSTR-1

GSTR-1 requires the taxpayer to make invoice-wise data of the outward supplies of the invoice data, invoice number, place of supply, rate of tax, and so on. However, taxpayers often make errors while reporting under GSTR-1 because of the vast amount of data that needs to be furnished, which may cause differences between GSTR-1 and GSTR-3B. As discussed previously, such mistakes can cause reconciliation errors between GSTR-1 and GSTR-3B, leading to tax penalties.

10. Categorizing zero-rated supplies as Nil-rated

Zero-rated supplies refer to the export supplies made to an SEZ by the taxpayer registered under GST. Nil-rated supplies, on the other hand, refer to the supply of goods and services, over which the tax rate is 0%. Taxpayers often confuse zero-rated supplies with Nil-rated supplies when filing returns. The taxpayer must not confuse zero-rated supplies with Nil-rated supplies while filing GST returns.

Tax Audit Form: 3CA, 3CB, 3CD, and 3CE

The Income Tax Act 1961 defines the audits of taxpayers under Section 44AB, whereby the applicability of tax auditing for professionals and businesses is stated. A CA inspects and verifies these accounts and prepares the audit reports, which are filed in forms 3CA, 3CB, 3CD, and 3CE.

The applicability, process, and penalties associated with the tax audit forms 3CA, 3CB, 3CD, and 3CE have been discussed in this blog.

Form 3CA

 3CA (Audit Annexure Form) is required to be enclosed with 3CD (Main Tax Audit Report) if the books of accounts of the assessee are required to be audited under any other law, such as Companies Act, 2013, including tax audit under the Income Tax Act,1961. This Form is applicable in the case of tax audits applicable on companies since companies are also required to furnish the statutory tax audit report under the Companies Act, 2013. Hereby, the assessee is applicable for TAX audit u/s 44AB of the Income Tax Act as well as the Companies Act.

3CA includes a summarized overview of the assessee’s personal information (such as the personal information of the chartered accountant and the assessee including the PAN details, and address). The date of the audit report, CA membership number, date of the balance sheet used to perform the audit, and highlights of the qualifications/ audit observations are found in the details associated with the Form 3CD.

Form 3CB

Form 3CB is required to be furnished by taxpayers carrying out business or professional activities, for whom, tax auditing is not mandated under any other law. As discussed above, only income tax audit is applicable under Section 44AB. Form 3CB is applicable for other than companies. Any individual/HUF, proprietorship entity, or partnership firm with an annual turnover exceeding from specified limit, and not mandated to get its accounts audited under any other law, is required to furnish form 3CB including the 3CD Report.

Besides Form 3CB, the taxpayer is required to Form 3CD which contains a detailed overview of all the prescribed particulars regarding tax auditing.

Form 3CD

The income tax audit Form 3CD is a detailed statement of particulars containing of 41 clauses, whereby all the details related to business and transactions, such as revenue, turnover, expenses, profits, asset-liability details, and so on are furnished by the taxpayer.

Form 3CE

Form 3CE is required to be furnished along with an annexure of particulars, by foreign companies and non-residents that receive a royalty for technical services provided and are mandated to get their books of accounts audited.

Specified Limit for Tax Audit

Due Date to file Income Tax Audit Forms: 3CA, 3CB, 3CD, and 3CE

An income tax audit report is required to be obtained by a taxpayer before 30th September or One month Prior to the due date of furnishing the return of the Income Under section 139(1) for the given assessment year, unless the due date has been extended as per the government guidelines.

Penalty for not filing Income Tax Audit Reports

In case of non-compliance to the income tax auditing regulations and not furnishing the tax audit forms 3CA, 3CB, 3CD, and 3CE, a minimum penalty of 0.5% can be imposed over the total sales, turnover, or gross receipts, which can further be raised up to ₹ 1,50,000 as per Section 271B. However, no penalty will be imposed if the taxpayer provides a relevant reason for not furnishing the income tax audit reports and not filing the tax audit forms 3CA, 3CB, 3CD, and 3CE.

What are Email Spam Filters and Why are they Necessary?

 Have spam emails ever cluttered your inbox? We know the answer is most likely a yes, since junk mails are not rare to sight. These junk emails are bearable unless they start getting into your daily activities and disrupting your workflow. This puts forth the question,

How to stop spam emails?

A recent study shows that one in every 6 emails is spam. Now imagine manually filtering out these spam emails out of your mailbox, sounds like a task, doesn’t it? To the relief of users, most email hosting services are equipped with email spam filters that keep the user’s inbox free from junk emails.

What is an email spam filter?

Ever witnessed that one junk folder in your email hosting server where most of the spam mails end up? Well, all thanks to an email spam filter, users can avoid spam emails from getting into inboxes. But what is an email spam filter?

An email spam filter is a tool used in email hosting software that churns out unsolicited, unwanted, and virus-infested emails and keeps such emails off of the user’s inbox. This protects the user from any potential cyber threat and facilitates smooth communications and workflow.

How does the email spam filter work?

Now the next important questions are how do email spam filters work? And what triggers the email spam filter?

The answer to these questions, however, is not that apparent. Email spam filters work on certain defined rules which can be different for different spam filters and email hosting servers. Broadly, these spam filters look for common trigger words and evaluate emails on different algorithms before bifurcating the important emails and the spam emails.

For a better comprehension of how email spam filters work, it’s important to understand the different types and categories of email filters.

What are the different categories of email spam filters?

Based on where they exist in the emailing process, email spam filters can be divided into three broad categories,

Gateway spam filter: A gateway email spam filter is typically physical hardware that is located behind the firewall of a network in an on-premise server rather than being stored in the cloud. This mail sets up a security gate on the network, prohibiting malicious and spam emails from entering the email server.

Hosted spam filters: A hosted email spam filter is based on the cloud, unlike the gateway email spam filter. This email spam filter works similarly to the gateway spam filter, stopping spam emails from getting into the system network.

A major point of difference between a hosted spam filter and a gateway spam filter is that the hosted filter, as against the gateway filter, is hosted by a third party and allows the benefit of quick updates and the latest technology without additional effort.

Desktop spam filters: Desktop email spam filters are installed locally on the computer, generally by the user and facilitate easy configuration, and are custom to the user’s needs.

What are the types of email spam filters?

Based on the working standards, email spam filters can be categorized into five types,

Content Filter: The content email spam filter looks for trigger words and information that is commonly used in junk emails. By evaluating the words and language used in the body and subject line of the email, a content email spam filter pushes out potential spam emails from the user’s inbox and sends them to the junk folder.

Blacklist Filter: Blacklist filters work by filtering out the emails on the basis of the sender’s reputation and domain used. For a sender who has been marked spam by multiple users, the blacklist emails spam filter will prohibit the emails sent by such a sender from getting into the inbox of users. Individuals and organizations can also use their own blacklists to avoid wasteful and malicious emails.

Header Filter: Header email spam filters use Internet Protocol (IP) addresses to evaluate the source of the email and filter out any suspicious email addresses. This filter assesses e-mail headers for the information in the header about the recipient, sender, and subject fields displayed by the email browsers.

Rule-Based Filter: In the case of a rule-based spam filter, the users can define custom rules and standards, non-adherence to which can send the emails straight into the spam box. This way, the users can filter out and protect their inboxes from targeted emails and senders.

Language Filter: A language email spam filter simply filters out the emails that are not in the language of the user and keeps the emails from other regions off the user’s inbox.

Why do you need an email spam filter?

An email spam filter is a necessity for every individual and organization operating emailing activities on a regular base. An average person roughly receives 100-120 emails a day, out of which an average of 80% of emails are spam. At its very root, keeping your communications flow smooth requires a reliable email spam filter.

Digging deeper into this topic, let’s discuss the reasons that make email spam filters an absolute necessity.

Security

Out of all the emails received by an individual throughout the day, the possibility of a phishing attack or cyber threat is never zero. With the benefits of email spam filters, the security risk can be reduced since the user gets in hand the emails that have gone through various spam checks. Moreover, these email spam filters throw out malware, malicious, and virus-infested emails and protect user security.

Time-Saving

Let us go back to the emailing stats we discussed at the beginning of this section. Having to filter out the 20% important emails out of the average 80% clutter does seem time-consuming. This can be of greater concern if these stats are put into an organization’s emailing communications. By filtering out the important emails and sending to the spam box the junk emails, an email spam filter saves time for the user and keeps the business communications going by streamlining the user inbox.

Increased Productivity

Along the lines of the time-saving benefit of email spam filters, these tools facilitate increased productivity of the user by keeping away unwanted emails. As mentioned in the types of email spam filters, in certain cases the users can set up standards for email spam division. By keeping away the emails that might distract or waste the time of the employees, these email spam filters can keep the inbox of employees clean and facilitate increased productivity.

Get 100% spam protection with WeMail

Now that you know the working of the email spam filter and its need for email operations, now the big question is, what is the best email spam filter?

Start with asking yourself what you seek in an email spam filter. Most likely, security, effectiveness, and cost efficiency will be a part of your list in addition to various other features. So where can you find a tool that is equipped with all these advanced email spam protection features?

WeMail is the answer. With advanced spam protection tools, WeMail by Webtel is a reliable solution for the spam protection requirements of your organization. Discussed below are the key features of WeMail’s advanced spam protection tool,

Inbox Security: By enabling automated incident response, WeMail’s anti-spam tool eliminates the efforts of investigating and removing target phishing attacks.

Threat Intelligence: Smart and integrated spam protection tool filters out unique IP addresses, phishing, and malware cyber threats in a secure and timely manner.

Threat Detection: Web threat detection engines offered by WeMail are easily integrated into the security of the server and keep the user’s inbox spam free.

Spam Check: The advanced spam detection tools of WeMail filter out spam mails with the assistance of 11 specific filters such as domain key check, DKIM record check, reserve DNS evaluation, SPF check, and so on.

RBL Check: RBL or DNS-based blacklist is an anti-spam tool that checks the servers' IP addresses against real-time blacklists. WeMail makes use of 27 RBL filters to keep junk mail out from the user’s inbox based on the sender’s domain or IP blacklist detected.

Greylist Filters: With the use of 1253 greylisting filters, WeMail protects the user from any possible spam emails and phishing attacks.

Virus Quarantine and Spam Quarantine: Quarantine refers to isolating virus and spam-infested emails in a separate storage area and prevent it from contaminating other files. WeMail’s integrated anti-spam features make use of virus and spam quarantine to avoid exposure to corrupted emails.

In addition to advanced spam protection, WeMail by Webtel offers an array of smart features custom build to facilitate business emailing processes. Listed below are the prime features offered by WeMail,

Privacy: WeMail keeps the email data privacy of users protected with the help of advanced tools and features, making WeMail a reliable email hosting solution.

Accessibility: WeMail ensures seamless synchronization of multiple business email ids, over all devices, hence making accessibility easy.

Branding: By providing a customized email domain address, WeMail enhances your business brand image and elevates your business communications.

E-Signature Laws in India | Everything you need to know

Digitalization in India is taking over the traditional business environment by storm, causing India to shift towards a paperless economy by enhancing its digital infrastructure. Through automation and digitalization of business operations, e-signing in India is becoming the method of choice to authorize and approve documents and transactions. However, e-signing laws in India dictate the validity, functionality, and usage of e-signatures.

What are e-signatures?

E-signatures are the digital, or electronic version of the conventional ink and paper signatures, which indicate the intent of an individual, organization, or authority to agree to the contents of a document, contract, transaction, or administrative data. E-signatures in India are bound by a set of laws for the e-signing processes of businesses.

What are the laws for e-signing in India?

E-signatures in India are governed by :

• Information Technology Act, 2000 (ITA)
• Indian Contract Act of 1872 (ICA)
• Electronic Signature or Electronic Authentication Technique and Procedure Rules, 2015 (ESEATPR)
• Indian Stamp Act, 1899, and the relevant state stamp acts.

These e-signing laws form the basis for all electronic signing activities.

Primarily, the Information Technology Act, 2000 (ITA) is the governing law for e-signing in India. The ITA sets basic benchmarks for the rules of e-signing to be followed.

What are the types of e-signature in India?

• E-signatures that combine an Aadhaar with an eKYC service

With the use of an online integrated e-signature service with an application service provider (ASP), anyuser with an Aadhaar ID can make use of secure digital signing in India through a mobile or web app interface.

This app interface can be used for online e-signing in India for any document by means of authentication of their identity using eKYC services.

• Digital signatures that are generated by an asymmetric crypto-system and hash function

An 'asymmetric crypto system' provides a secure pair of keys (a public key and a private key), which can be used to verify and create an e-signature in India. Here the user obtains an electronic signature from a certifying authority in the form of a digital signing certificate that includes the name of the user, public key, the expiration date of the certificate, and other relevant information.

What are the requirements for the reliability of e-signatures?

As per the IT Act, to be considered valid, the e-signatures in India must satisfy the following conditions,

• The e-signing laws in India state that e-signatures must be linked to the person signing the document in the form of a government-issued digital ID.
• The signer must have complete control over the data used in the generation of the electronic signature by directly affixing their e-signatures to the document.
• As given in the e-signing laws in India, any alterations to the affixed e-signature must be detectable after the e-signing by the use of a tamper-evident seal.
• There should be an audit trail describing the steps taken in the electronic signing process.
• As per the e-signing laws in India, the digital signature certificate must be issued by a Certifying Authority (CA), as recognized by the Controller of Certifying Authorities (CCA).

When can you not use an electronic signature?

As given in the IT Act 2000, e-signatures in India cannot be used in all classes of documents and there are specific cases that require the use of conventional wet/physical signatures. Listed below are the cases in which laws of e-signatures are considered invalid,

• In the case of any contract for the sale of immovable property in India or any contract, interest, or conveyance in such property, e-signing laws cease to exist and wet signs are to be considered valid.
• As stated under the laws for e-signing in India, in the case of power of attorney as per Section 1A of the Powers of Attorney Act, 1882, electronic signatures cannot be used.
• A will and/or testament disposition as per Section 2(h) of the Indian Succession Act, 1925 cannot be authorized using e-signatures as per the e-signing rules.
• E-signatures cannot be used in the case of a negotiable instrument such as a promissory note or bills of exchange other than a cheque, as per Section 13 of the Negotiable Instruments Act, 1881.
• A trust deed as per Section 3 of the Indian Trusts Act, 1882 must not be signed using electronic signatures as per the e-signing laws in India.

When can e-signatures be revoked?

The e-signing laws in India state that, under certain conditions, the CA can revoke the digital signature certificate, deeming the use of DSC invalid.

• The e-signing rules mention that an electronic signature can be revoked at the request of the e-signer to revoke the DSC.
• In the case of insanity or death of the e-signer, the e-signatures can be revoked.
• At the time of winding-up, dissolution, or insolvency of the company, electronic signatures will be revoked.
• Electronic signatures can also be revoked in the case of misrepresentation, falsification, or hiding of facts on the part of the e-signer.
• Inability to fulfill the requirement for the issue of DSC.

 How to know if your e-signatures are valid?

e-signatures will be considered invalid in the following cases,

• The DSC has not been issued by a Certifying Authority (CA).
• The subscriber in the list has not accepted the DSC.
• The certificate has been suspended, revoked, or canceled.

Web-e-Sign for all your e-signing requirements

Fulfilling all the statutory and compliance requirements of digital signing is definitely not an easy job. The task, however, doesn't end with acquiring e-signatures that follow all the e-signing laws in India, integrating the e-signatures into your work processes in a fast and secure manner, requires a smart e-signing solution.

But what is the best e-signing solution for your business?

Web-e-sign is the solution that you have been looking for to resolve all your e-signing problems and follow all the e-signing rules.

What is Web-e-Sign?

Web-e-Sign is the e-signing solution for your business that ensures automated bulk digital signing with an advanced and seamless integration that helps you meet all your business requirements and comply with all the e-signing rules.

What makes Web-e-Sign better?

Web-e-sign is a smart e-signing solution by Webtel that offers a pool of features, making it the best e-signing solution for your business. Discussed below are some of the key features that make web-e-sign the best e-signing solution for you.

• Web interface with logs and reports: Web-e-Sign offers a web interface to track all activities like batch time schedules, log sheets, mail settings, etc.
• Signing Facilities with Collaboration: With the help of Web-e-Sign by Webtel, you can align multiple authorized signatories for affixing their digital signatures on documents.
• Signing with auto intelligence: Web-e-Sign facilitates one-time settings for the configuration and scheduling of documents for signing and adds automation to the signing process.
• The perfect solution even for non-ERP users: Even a non-ERP user can use Web-e-Sign by manually affixing a digital signature to various documents.
• ERP integration through API/T-Code: Seamless integration with any ERP through API and T-Code mode. All assistance is given from API/T-Code documentation to the implementation process.
• Sending signed documents: Web-e-Sign helps to email the signed pdf documents to the requisite department e.g. appointment letters etc. can be e-mailed to the HR department and invoices to the accounts department.
• Enhanced security with anti-tampering of signature: With Web-e-Sign you get enhanced security where all activities on a document are tracked, time-stamped, and free from tampering/ manipulation/ alteration.
• Document signer certificate: We provide a document signer certificate issued in the name of the organization which is issued by the Controller of Certifying Authorities (CCA) for server-level signature (Integrated Signature Solution).