In recent times, India’s tax environment has changed dramatically. With a view to increase transparency in the economy, the Indian Government has taken several measures to make organizations tax compliant. Various incentives in the form of tax advantages are being introduced in order to attract investments and promote economic development for setting up units in certain parts of the country. The corporate tax rates are being reduced and steps are been taken to phase out certain deductions.
However, the compliance burden in order to avail these tax benefits and advantages has increased manifold making the tax landscape in India complex. The income tax return forms are more elaborate with even more detailed disclosures required. Non – disclosure of correct and complete information attracts penalties and increases the chances of litigation.
Organizations not only have to adopt and adhere to the ever increasing compliances, but also strategize and execute their business plans in order to minimize their tax liabilities within the framework of the existing regulatory framework. For this, our team of tax professionals are constantly in the process of decoding the complex tax structures in order to help clients keep at pace with the necessary compliances and address their tax concerns.
We offer integrated services - advisory and assistance to procedural compliances under both – Direct & Indirect Taxation.
A. Corporate Taxation and Compliance:
Our corporate tax team is equipped with a deep understanding of organization needs in order to help clients perform better and meet their obligations. Our services include :
- Advising and executing business restructuring for organizations keeping in mind the tax implications
- Helping organizations set up business plans in order to minimize tax liabilities within the given regulatory framework
- Assessing the impact of the various amendments in law on the business of the organization
- Assessing the tax impact on the organization on account of the policies of the organization
- Analyzing tax implications of cross – border taxation
- Advising and analyses of transactions keeping in mind the withholding tax requirements
- Providing tax opinions in the light of the applicable laws
- Adhering to tax compliances – filing of income tax returns, e-TDS returns and other forms mandated by the Income Tax from time to time.
B. Representations before tax authorities and Dispute Resolution
With stringent and more complex tax structures becoming the norm of the day, revenue authorities are becoming even more active in enforcement activities in the entire tax spectrum. Under such circumstances, every organization needs technical support to understand the judicial framework of the jurisdiction in which the organization operates, resolve tax disputes, and understand the tax implications of the various transactions undertaken by the organization.
Our team of tax professionals which also include former government officials who have hands – on experience in resolving tax disputes, both from the revenue and client perspectives support organizations to strategically plan their transactions in order to avoid litigations and disputes. However, in the wake of such disputes, we help represent the cases before the taxman, make presentations and settle disputes efficiently and favorably.
Our support services include :
- Assistance in pre – filing rulings i.e filing of Advance Pricing Agreements
- Drafting submissions / replies and representations before tax officers / Commissioner of Income Tax (Appeals) / Income Tax Appellate Tribunals (ITAT)/ Dispute Resolution Panel (DRP)
- Assistance in preparation of advance ruling application and support for representation before Authority for Advance Rulings (AAR)
- Addressing questions from revenue authorities and defending the clients before revenue authorities
- A continues effort to reduce the scope of tax litigation
C. Taxation of High Networth Individuals (HNI’s)
India is a high tax paying country. HNI’s in particular would be more affected by the higher tax rates owing to their various income and investment sources. Several reforms have been introduced by the Government in the last few years in order to make India a tax – compliant which directly impact such HNI’s. We provide personalized services based on client needs. These include :
- Accounting for transactions in India under the various applicable laws
- Advice on Capital Gain transactions within the given regulatory framework
- Preparing computation of income in line with the provisions of the Income Tax Act
- Computation of advance tax liabilities and ensuring timely payments
- Filing of Income tax returns and reporting under the Indian Black Money Law
- Liaising with Income Tax Authorities
- Assisting in responding to intimations received from the Income Tax department and also in obtaining refunds from income tax authorities.
D. Taxation of Non - Resident Indians (NRI’s)
Over the years, India has witnessed a large number of NRI’s increasing economic interests. However, NRI’s often face challenges in terms of tax and regulatory compliances. Keeping in mind the issues faced by NRI’s in India in regards to their taxation, UJA provides a personalized and comprehensive solution to NRI taxations which includes :
- Obtain Permanent Account Number (PAN)
- Determining residential status, advising on tax deductible investments and tax advisory
- Accounting of transactions in India in accordance with the applicable laws
- Capital Gain Advisory
- Computation of advance tax liabilities and ensuring timely payments
- Filing of returns of income in India and ensuring reporting’s are made as per the applicable laws
- Communicating with Income Tax Authorities
- Assisting in responding to intimations received and obtaining pending refunds from the income tax authorities
- India has signed the Multilateral Competent Authority Agreement (MCAA) on Automatic Exchange of Information (AEOI) with many countries, which will result in automatic exchange of information with several countries. Hence, there is an increasing need to stay compliant with tax laws in India as well as disclosure requirements as required at the time of filing of Income Tax Returns.
The indirect tax landscape in India is in it’s evolution stage. Indirect taxes are levied at both central and state levels. Organizations are posed with challenges to analyze that their business structure from an indirect tax perspective and also make sure that the ever growing compliances in the form of reporting etc. are being taken care of.
Understanding these complexities, UJA advises clients in transaction structuring, advisory in GST, Customs including legacy issues from excise, service tax, VAT and entry tax laws, restructuring for tax efficient business transactions, interpretation of complex tax laws, risk mitigation, representation at all dispute resolution forums from adjudication and appellate authorities. Advising on diverse spheres of trade and tax regulations including investment in Special Economic Zones (SEZs) and tax holiday regions, WTO trade protection measures such as anti-dumping and safeguard duty, import and export control, anti-profiteering norms, entertainment tax, legal metrology, drugs and cosmetics regulations, export incentive schemes amongst others.
A. Goods & Service Tax (GST)
The introduction of GST brought about a major reform in the indirect tax structure of the country. It was introduced with an aim to consolidate multi layered tax system into one single tax. The introduction of GST has far reaching effects on the business operations of almost all organizations.
GST compliances were introduced on the “matching concept” i.e the buyers and sellers data need to be periodically matched in order to eliminate any tax leakages.
1. GST AdvisoryTo cope with the regulatory compliances under GST, we provide the following services :
- Interpretation of GST Act and specific sections depending upon the clients’ industry, products, exporter/importer status etc.
- Registration under GST and classification in terms of HSN and SAC codes and the applicable tax rates
- Ascertain place of supply to determine relevant state for GST compliances and tax payments
- Claim proper input tax credits where eligible and exclude or defer input tax credits not eligible as well as refunds or tax credits for exports
- Ascertain and ensure compliance with reverse charge on inward supplies where applicable
- Formulating tax efficient business models and structuring of contracts / transactions to optimize tax incidence
- Conducting tax impact assessment studies.
2. Compliances under GST
- Review of tax returns and tax computations and submission to tax authorities in each state or for each registered location (including review of mismatches between vendors and/or customers and the client’s records based on reconciliation prepared by the client)
- Ensure filing of periodic and annual tax returns in each state (or for each registered presence) based on applicability
- Special procedure for valuation in case of related party transactions
- Addressing operational issues arising out of GST implementation, vendors and customers ecosystem support and advisory services as well as obtaining advance rulings
- Assisting the client in getting annual GST Audit done in respect of each registered presence where the client is situated
- Review of Order to Cash and Procure to Pay and other processes from a GST perspective, including testing, validation and user acceptance of ERP related GST controls.
- Assistance in filing / submitted of Letter of Undertaking (LUT) incase of exports under GST Rules.
- Assistance in refund of excess GST paid.
B. Litigation support under Indirect Tax
- Representation before GST assessing and appellate authorities in the various states across India
- Support in the erstwhile Indirect Tax litigations (Service Tax , VAT) on a PAN India level
Foreign Trade Policy Matters
Foreign Trade Policy (FTP) was introduced by the Government to promote Indian export of goods and services, generating employment and increasing value addition to the country.
Our services here assisting exporters in availing the various incentives under the FTP
- Export Promotion Capital Goods- The exporters are entitled for import of new capital goods under this scheme without payment of custom duties. The exporter can also purchase domestic capital goods under this scheme by obtaining Invalidation letter.
- Export Promotion Scheme- The exporters are entitled for various export promotion schemes under Foreign Trade Policy like Merchandise Export Incentive Scrip (MEIS), Service Exports from India Scheme (SEIS).
- Duty Remission Scheme- Duty Remission schemes like Duty Drawback enables exporter to get remission of the duties on inputs used in exported goods. Under the duty drawback there are two ways by which the duty remission can be obtained.