TAX

The Tax practice is continuously endeavoring to help the clients achieve the desired results through customized and innovative solutions. We are focused on exploring opportunities and leveraging them to enhance the benefit to the clients in the form of significant tax savings.

The progressive and bottom - line focused managements have realized that taxes should be viewed as a dynamic item of cost, rather than a passive charge on the profits.

 

Income tax


Income tax constitutes a major element of the tax cost for any enterprise and it applies to all Indian entities as well as foreign entities that have any direct or indirect business link with India.

 

In the modern world all businesses are engaged in multinational transactions and operations, they are continually challenged to manage the impact of multiple and ever-changing tax jurisdiction. We provide comprehensive and sophisticated tax assistance in effectively structuring the impact of global taxation. We help to solve highly technical, local and international tax issues.

In today's constantly changing global scenario, capital is always in search of opportunities and businesses always aspiring to convert their potentials into capabilities. With liberalization playing a key role in Indian policies, it has led to a multitude of multinational companies entering India.

Simultaneously Indian companies have established their presence in global markets and several companies have also been listed on overseas bourses such as the NASDAQ, AIM etc.

The interplay of domestic and international tax incident on these companies often results in complex situations. Converging on an optimum solution requires taking a holistic view on the 'total' tax impact rather than a country specific examination.

We provide the consultancy and opinion on the taxation in the cross border transactions incurred by the entities. We provide the feasible solutions to the issues of the cross border transactions and Double Taxation Avoidance Agreements. We also have liaisons with the attorneys in the major countries of the world.

We have illustrated certain services that we provide in field of Income-tax:

  • Advise on cross border transaction
  • Advise on fringe benefit tax impact
  • Advise structuring investments, businesses and operations in India in a manner that tax cost is optimised
  • Conduct tax due diligence of Indian target companies.
  • Advise on other specific transactions like merger, de-merger, internal and external reorganisations, buy backs, capital reduction, spin offs etc
  • Assistance in obtaining tax exemption certificates
  • Assistance in obtaining various registrations like permanent account number, tax-deduction account number, etc
  • Assistance in other compliances like filing return of income, withholding returns, etc
  • Conduct withholding tax and fringe benefit tax compliance reviews for Indian companies
  • Structure private equity funds, venture capital funds, public market funds and review its agreements from Indian tax perspective.
  • Assistance in tax litigations

 

Transfer Pricing

 

In the wake of globalization, most MNCs today generate large portions of their taxable income, from countries other than their home jurisdictions, thus making transfer pricing an increasingly important issue among tax directors, boards of directors and government fiscal authorities worldwide.

The explosive growth in world trade in recent years, and the resulting increase in cross - border transactions between related parties, has catapulted transfer pricing to the forefront of important international tax issues. MNCs of all sizes are finding their transfer pricing practices under increased scrutiny by tax authorities.

Extensive Transfer pricing regulations for India have been proposed according to which an arm's length standard is the frame of reference. This implies a valuation of transfer pricing transactions based on selling prices or benchmarks set by unrelated (or independent) parties transacting in similar selling environments.

Fiscal authorities are policing multinational's transfer pricing policies more aggressively in attempt to protect their tax base from erosion. The Income-tax Act, 1961 now has specific regulations relating to transfer pricing, which are based on OECD Transfer Pricing Guidelines which requires understanding of international transfer pricing laws to address Indian transfer pricing questions. The risk of exposure to double taxation and possible interest and penalties propel clients to adopt a pro-active approach.

The appropriate transfer pricing strategy balances opportunity and risk management, weighing effective tax - rate optimizations against fiscal-authority challenges and the costs of compliance.

Transfer Pricing has become the most challenging area of international taxation. We advise multinational companies on the most appropriate Transfer Pricing Policy to be followed, conduct transfer pricing planning studies before determining pricing of new cross border transactions, conduct transfer pricing study to determine whether the related party transactions of the company are in line with arms length pricing principles, update existing transfer pricing studies with fresh comparable companies, litigate transfer pricing matters with tax authorities and structure proposed transactions from transfer pricing perspective.

Our approach is marked by innovation and the resulting policy is one that is the most practical. We enable you to develop an integrated transfer pricing strategy, tax planning, economic analysis, accounting, statistical methods and database development to ensure the highest level of expertise in formulating and then implementing effective transfer pricing strategies. It focuses on the prices charged for related - party transactions, including the inter company transfer of tangible goods, intangible property services, loans and leases. It affects nearly every aspect of multinational operations - R&D manufacturing, marketing and distribution, after-sale services, and of course, an organization's worldwide tax burden.