Direct-Tax
Domestic Taxation
Mandatory Audit Requirement:
Under Section 44AB of the Income-tax Act in India, a tax audit is compulsory when the gross turnover exceeds Rs. 1 crore or Rs. 25 lakh from business or profession.
Services Offered:
Conducting Tax Audit:
Our team specializes in conducting thorough tax audits to ensure compliance with legal requirements and to optimize your tax position.Filing Tax Audit Report:
We handle the preparation and submission of tax audit reports in Form 3CA/3CB and 3CD, providing comprehensive documentation of your financial information and compliance status.
Tax management and compliance are fundamental aspects of modern business obligations, encompassing the timely filing and payment of taxes to meet legal requirements.
Services Offered:
Income Tax Returns Filing:
Our team ensures seamless preparation and filing of income tax returns, assisting you in meeting your tax obligations accurately and efficiently.TDS/TCS Returns Filing:
We handle the meticulous preparation and submission of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) returns, ensuring compliance with regulatory mandates.Advance Tax Compliances:
Our experts manage all aspects of advance tax compliances, guiding you through the process to fulfill your tax obligations in a timely and compliant manner.
Scrutiny Assessment U/S 143(3):
Scrutiny assessment involves a detailed examination of an income tax return, allowing the assessee to substantiate income, expenses, deductions, losses, and exemptions claimed, supported by evidence. The purpose is to ensure accurate reporting and compliance, preventing understated income, excessive loss computation, or tax underpayment.
Rectification U/S Section 154:
Rectification addresses mistakes apparent in intimation, assessment, revision, and appellate orders, providing a mechanism to correct errors in the tax process.
Appeals U/S 246A (CIT(A)) and 253 (ITAT):
Appeals involve seeking a reversal of decisions made by assessing officers or lower authorities through application to higher authorities, such as the Commissioner of Income Tax (Appeals) [CIT(A)] and the Income Tax Appellate Tribunal (ITAT).
Revision U/S 263 & 264:
Revision under Section 263 allows for the correction of erroneous and prejudicial orders by the Commissioner of Income Tax (CIT) or Principal Commissioner of Income Tax (Pr. CIT). Section 264 provides an alternative option for the assessee to seek revision without resorting to appeals.
Services Offered:
Representation before Tax Department:
We provide representation in assessments, investigations, surveys, searches, and other civil cases, ensuring effective communication and advocacy on behalf of our clients.Representation before CIT(A) and ITAT:
Our team represents clients before the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal, advocating their interests and seeking favorable resolutions.Representation before Authority for Advance Ruling (Residents):
We offer representation services before the Authority for Advance Ruling, addressing queries and seeking clarity on tax matters for residents.Filing of Replies to Summons and Notices:
We handle the filing of replies to summons and other notices from tax authorities, ensuring timely and appropriate responses to legal inquiries.Filing of Compounding Applications to CCIT:
Our team assists in the filing of compounding applications to the Chief Commissioner of Income Tax (CCIT), facilitating resolution through compounding of offenses.
Domestic transfer pricing regulations and compliance govern specified transactions between related parties, ensuring fairness and accuracy in pricing.
Services Offered:
- Preparation of Report under Section 92E:
We assist in the preparation and filing of reports under Section 92E in Form 3CEB for all specified domestic transactions. This includes transactions where the individual transaction amount exceeds 5 or 20 crores during the year under review, ensuring compliance with regulatory requirements
Overview:
Tax due diligence entails a comprehensive review of all taxes a company is obligated to pay, ensuring accurate calculation and no intent of under-reporting. Additionally, it involves verifying the status of any pending tax-related cases with tax authorities.
Services Offered:
Documentation of tax compliance and potential issues typically includes verification and review of the following:
Copies of Tax Returns:
- Income Tax Returns
- Withholding Tax Returns
Review of Past or Present Pending Tax Assessments:
- Examination of any pending tax assessments against the company, ensuring clarity on the status and resolution of these matters.
Overview:
In the contemporary business landscape, every transaction or arrangement carries potential income tax implications. Seeking tax advice beforehand is essential to mitigate surprise tax burdens effectively.
Services Offered:
Transaction/Arrangement Structuring:
- We assist in structuring transactions or arrangements to minimize or alleviate tax burdens while ensuring compliance with relevant tax laws.
Providing Opinions on Domestic Taxation Issues:
- Our expertise extends to offering opinions on various domestic taxation issues, including interpretation of provisions and addressing complexities within the tax framework.
International Taxation
Q. What is transfer pricing?
Transfer pricing involves the setting, analysis, documentation, and adjustment of charges between related parties for goods, services, or use of property, including intangible property.
Q. Is it mandatory?
Yes, as per Sections 92 to 92F of the Income-tax Act 1961. These provisions require that commercial outcomes from international transactions between associated enterprises align with the arm’s length principle.
The Income-tax Act prescribes several methods for calculating the arm’s length price, including:
- Comparable Uncontrolled Price method (“CUP”)
- Resale Price Method (“RPM”)
- Cost Plus Method (“CPLM”)
- Profit Split Method (“PSM”)
- Transactional Net Margin Method (“TNMM”)
Q. What services do we provide?
We offer comprehensive professional services related to transfer pricing, ensuring compliance with arm’s length pricing determined by the prescribed authorities. Our services include:
- Planning, review, and evaluation of transfer pricing mechanisms.
- Adherence to and compliance with transfer pricing regulations and provisions as per present legislation.
- Representation before competent authorities.
- Expert tax planning with flexible implementation of transfer pricing methodologies.
- Consultancy services to identify and mitigate potential threats related to existing legislation and organizational policies to avoid taxation and legal consequences.
Deliverables
Documentation:
Required documentation complies with Rule 10D of the Income-tax Act 1961. This documentation emphasizes analysis in the following areas:
- Functional analysis
- Asset analysis
- Risk analysis
Certification:
Companies required to file transfer pricing reports must submit FORM 3CEB to the tax department, duly certified by a chartered accountant, before the income tax filing due date.
Penalties for non-compliance
Compliance Section | Contravention | Penalty |
---|---|---|
Sub-section (1) or sub-section (2) of section 92D | Failure to maintain information and documents for international transactions | Sum equal to two per cent of the value of each international transaction |
Sub-section (3) of section 92D | Failure to furnish information or documents | Sum equal to two per cent of the value of the international transaction for each failure |
Section 92E | Failure to furnish report | Sum of one hundred thousand rupees |
Transfer Pricing Assessment U/s 92CA
Under this provision, during transfer pricing assessments, the Transfer Pricing Officer evaluates the arm’s length price of international transactions and identifies any discrepancies.
Advance Ruling U/s 245O
Advance ruling encompasses:
- Determination by the authority concerning a transaction undertaken or proposed by a non-resident applicant.
- Determination regarding the tax liability of a non-resident arising from a transaction with a resident applicant.
- Determination of the tax liability of a resident applicant arising from a transaction undertaken or proposed.
- Determination or decision by the authority on an issue relating to the computation of total income pending before any income-tax authority or the Appellate Tribunal.
- Determination or decision by the authority on whether a proposed arrangement constitutes an impermissible avoidance arrangement under Chapter X-A.
Services Offered
Representation before Income Tax Authorities:
We provide representation before income tax authorities during assessments, investigations, and other proceedings.Representation before Appellate Authorities:
Our team represents clients before appellate authorities to ensure their interests are effectively advocated.Representation before Dispute Resolution Panel:
We offer representation before the Dispute Resolution Panel, assisting in resolving tax disputes through mediation.Assistance in Advance Ruling Applications:
We assist in the preparation and filing of applications seeking an advance ruling with the Authority for Advance Rulings, ensuring clarity on tax matters.Representation before Authority for Advance Ruling:
Our services extend to representation before the Authority for Advance Ruling, addressing queries and seeking clarity on tax implications.
Impact of BEPS Initiatives:
BEPS (Base Erosion and Profit Shifting) initiatives have led to heightened tax compliance requirements for international transactions and Multinational Corporations (MNCs).
Services Offered:
Filing of Form 3CEB:
We facilitate the filing of Form 3CEB, ensuring compliance with transfer pricing regulations and documentation requirements.Filing of Master File and CbC Report:
Our team assists in the preparation and submission of Master Files and Country-by-Country (CbC) Reports, aligning with BEPS Action 13 guidelines to provide comprehensive information on MNCs’ global operations.Filing of Form 15CA and Form 15CB:
We handle the filing of Form 15CA and Form 15CB, ensuring compliance with foreign remittance regulations and obtaining certificates from chartered accountants to authenticate international payments.Filing of Flipside Returns:
We manage the filing of flipside returns, addressing any additional reporting requirements or disclosures necessitated by international transactions and BEPS compliance.
When multinational corporations venture into international business opportunities, navigating the complexities of cross-border transactions becomes paramount. Our expertise comes into play, offering guidance to ensure tax optimization and legal compliance in structuring these endeavors.
Inbound Investments
Advising on Entry Strategies: We provide strategic counsel on entry into the Indian market, recommending optimal ownership and jurisdiction structures.
Entity Structuring: We assist in determining the most suitable entry vehicles, whether branches, subsidiaries, or joint ventures, tailored to the specific market dynamics.
Regulatory Approval Assistance: Our team aids in navigating regulatory hurdles, securing necessary approvals from entities like the Reserve Bank of India and the Foreign Investment Promotion Board.
Incorporation and Registration: We handle the incorporation and registration processes for entry vehicles, ensuring compliance with Indian regulations.
Advisory and Compliance Services: We offer comprehensive advisory and compliance support for various modes of inbound investments, including foreign institutional investors and venture capital funds.
Outbound Investments
Strategic Investment Guidance: We provide strategic advice on outbound investments, helping clients structure their investments for maximum efficiency and profitability.
Entity Structuring: Our experts assist in structuring entities and capital for investments in specific jurisdictions, such as establishing international holding companies or global sales entities.
Regulatory Approval Management: We manage the regulatory approval process in selected jurisdictions, ensuring compliance with local laws and regulations.
Contractual Support: We offer assistance in drafting and reviewing shareholders’ agreements, joint ventures, and other relevant business contracts to protect our clients’ interests.
Tax Optimization and Due Diligence: Our team focuses on enhancing tax credit and income deferral in India, including advising on mergers, acquisitions, and conducting due diligence processes.
Services for Foreign Institutional Investors (FIIs)
Foreign financial institutions looking to invest in Indian securities through the stock market must register as Foreign Institutional Investors (FIIs) with SEBI. We provide comprehensive support to FIIs, addressing international tax issues impacting investment structures and transactions.
In the realm of international transactions and arrangements, the interplay between Double Taxation Avoidance Agreements (DTAA) and domestic law often leads to complexities that can increase the likelihood of litigation. Seeking tax advice before entering into any transaction or arrangement becomes crucial to mitigate the risk of disputes and excessive tax burdens.
Services Offered:
Opinions on DTAA and Domestic Law:
- Our expert team provides comprehensive opinions on the implications of Double Taxation Avoidance Agreements (DTAA) and domestic tax laws on international transactions and arrangements.
- We offer detailed analysis and interpretation of the provisions within DTAA and domestic tax legislation to ensure compliance and minimize the risk of disputes.
- Our opinions aim to provide clarity on tax matters, enabling clients to make informed decisions and structure transactions in a tax-efficient manner.