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Tax advisory for a leading dredging services company

Engagement: SKP was engaged by a world leader in dredging and related services based in Belgium for tax advisory for its Indian project valued at USD 75 million.

SKP was engaged with the objective of minimising taxes in India and for the group as a whole. We studied the background extensively and assisted in interposing a company in Mauritius along with subcontracting part of the dredging work.

We adopted a unique approach of vetting the source vendor document in Belgium and the charge made to the Indian Project Office (PO), stating that it was a cost reimbursement and hence not taxable in the hands of the foreign company. As a result, the Indian PO could claim these expenses as a tax deduction reducing the overall profits of the PO in India.

We provided continued support and advice on various tax issues during the execution of the project, such as Belgian and Indian accounting issues on foreign currency translations that would have an impact on taxation in Belgium and India.

Value Delivered
This resulted in huge tax savings of 40% on the USD 75 million project as well as no further taxation in Belgium.