Overview

Risk Advisory Services

Tax and Regulatory

Financial Advisory Services

SERVICES >  tax & regulatory  >  Indirect Tax Services

Indirect Tax Services

Despite the various reforms carried out in the past few years, the prevailing Indirect tax regime in India is still in a state of evolution. The system is quite complex, with multi-layered levies both at the Federal and State level. The Federal Government levies tax on goods at the point of import (Customs duty), manufacture (Excise duty), inter-state sales (Central sales tax or CST), and on provision of services (Service tax). The States, on the other hand, have been vested with powers to levy tax on sale of goods within the state (Sales tax/ Value Added Tax or VAT), and on entry of goods into the State (Entry tax), under the respective State laws.

The existing regime requires businesses to undertake careful upfront analysis of the tax costs involved in a transaction¸ ensure adequate backup documentation to support their tax positions and constantly explore opportunities for tax optimization. Further, as India is committed to move towards a uniform Goods and Services Tax (GST) regime by 2010, this needs to be factored in any significant tax strategy developed at present.

Our indirect tax professionals with their wide-ranging experience and in-depth knowledge help clients in all of these aspects. We provide advisory services in respect of state level Value Added Tax (VAT) / Sales tax, Service tax, Custom and Excise duties and Foreign Trade Policy related matters. This includes services in relation to setting up a green field venture including review of tax assumptions and analysis of tax exemptions/ concessions which could be relevant for the project and tax modeling involving analysis of tax costs and credits impacting the business models. We also provide services in relation to setting up of Special Economic Zones (‘SEZs') / SEZ units.

Further, an indirect tax diagnostic review or health check is an all-encompassing package offered to our clients. This review helps identify areas of potential tax exposure and tap opportunities for tax savings.

We also assist our clients in making representations before the revenue authorities for obtaining tax concessions, relief and seeking clarifications at state as well as federal level.

Key indirect tax offerings

vat / Sales tax

• Advice on classification issues, availability of credit & other related aspects and possible tax optimization opportunities
• VAT audits and process reviews

Service tax

• Advise on taxability of a service and classification thereof
• Diagnostic and Cenvat credit reviews
• Assistance in obtaining service tax rebate / refund from tax authorities
• Assistance during service tax audits
• Advise on special transactions such as cost sharing arrangements, import of technology, technical know how, royalties etc.

Foreign trade policy

• Advise on importability of goods and related procedures
• Assistance in representation before Directorate General of Foreign Trade (DGFT) authorities
• Advisory on possible benefits under various free trade and similar agreements entered into between India and other countries

Customs and sez

• Optimization of customs duty savings through appropriate classification, exploring various exemption and incentive schemes
• SEZ – Assistance in setting up units in SEZ, project approvals, representations, procedure manuals and reviews
• Export Oriented units (‘EOU’) / Software Technology Parks (‘STP’) - Assistance in setting up units, project approvals, representations, procedure manuals and reviews
• Special Valuation Branch (‘SVB’) – Advice regarding approach to SVB, assistance in submissions, representations and reviews
• Developing policies and procedures for key tax functions, preparation of SOP for tax compliances, Training key employees etc
• Diagnostic and compliance reviews

Cenvat

• Advise on classification, valuation and Cenvat credit scheme
• Assistance in assessing Cenvat liability and identifying concessions / benefits
• Identification of planning opportunities

Research and development cess

• Applicability of R&D Cess on import of technology/ deputation of foreign personnel and credit/ adjustment against service tax

Other services

• Greenfield projects – advice on tax implications and assistance in initial compliances/ setting up
• Advice on tax efficient business models
• Financial modeling from an indirect tax perspective
• Advice on EPC contracts and associated tax optimization opportunities

Top

For further details contact us