Cloud solutions for tax compliance gaining popularity

NEW DELHI: Adoption of cloud-based tax compliance solutions has risen among companies, including small and medium enterprises, as many consider going digital as a permanent alternative to on-premise systems as it offers more flexibility and risk mitigation.

The current lockdown has prompted even fence-sitters to begin using these tools, as they face constraints in accessing critical information that resides on systems in company premises and requires presence of executives at the location, providers of cloud-based services said.

The shift, insiders said, was taking place even as the government had extended compliance deadlines for both direct and indirect taxes to June 30.

"Instead of using some compliance solution which is hosted on the premises of the enterprise on a physical server, companies want to shift to cloud services," said Archit Gupta, the chief executive of Cleartax.