India's tax and regulatory environment can make the task of establishing and managing operations in the country a complex one. Constant changes in tax laws only add to the challenges. As businesses grow, tax risks increase along with a growing need for greater accountability and transparency. In such an environment, tax risk management is essential to maximise cash flows and proactively reduce risk while meeting compliance deadlines.
SKP can collaborate with you in various ways right from identifying and assessing tax risks to designing controls, monitoring and evaluation. We provide advisory, compliance and litigation support for international tax, transfer pricing and indirect taxation matters.
- We can be your Tax Advisers and provide solutions for specific issues.
- We can look after your compliance needs so you don’t have to worry about meeting the innumerable compliance deadlines.
- We can be your Tax Risk Manager/Chief Taxation Officer, akin to your Tax Director, and proactively look at the needs of your business. We take overall responsibility for reducing tax risk and thereby improving cash flows. We help you remain compliant and make sure that requirements are met in time. In effect, we would be your tax department on a co-sourced basis.
Our complete tax solutions can benefit you as:
- we have specialists who can provide a variety of services in a holistic manner;
- you don’t need to recruit your own team and worry about training or attrition;
- we proactively manage your tax risk in coordination with you; and
- we help free up CXO time.
Based on the relevant tax legislations and your organisation’s needs, we can help you create a tax risk management framework that would help identify tax risks and specify how processes and policies would be implemented. We can also review your existing tax risk framework and advise how it can be improved upon.
The documentation needs of an organisation would depend on its size, operations and other factors. A Tax Risk Management Manual can facilitate monitoring by the management or tax authorities as well as help your finance team and other departments to have a coordinated approach to managing tax risks.
We work with your in-house tax team and/or external advisers and become an integral part of your team. We assume complete responsibility of your tax department and, in essence, step into the shoes of your tax director. We would then proactively anticipate situations and caution the management if we expect any tax-related implications instead of merely reacting to a situation. With ever-changing laws and regulations and confusing judicial decisions, it is essential that your tax department is in the safe hands of a team that keeps abreast with the latest developments.
Our large team of specialists with varied experience is well equipped to offer advice on specific issues. Our well-researched opinion often provides great clarity to the management on any inherent issues, the legal position, judicial precedents and the way forward.
The web of multiple taxes, deadlines, tax rates, registrations and filings in India requires to be managed carefully and accurately. Even small technical defaults can result in severe consequences for the taxpayer. Therefore, it is imperative that all tax compliances are managed efficiently. Our process-driven tax team is well trained and equipped to handle various compliances. Sophisticated automation of routine tasks and efficient implementation of the “maker-checker” concept in the execution of tasks help us handle large volumes of transactions and a large number of clients in an efficient and timely manner.
Our team works with each client on ways to mitigate tax risks in India. While identifying and assessing tax risks are the initial steps, we ensure that the information obtained is conveyed in a way that will fulfil the tax risk management policy. In this manner, we help protect your business from a higher tax burden (incremental tax, interest and penalties on account of additions/disallowances), negative impact on cash flows, negative publicity and the resultant impact on reputation, potential loss of business opportunities, and any uncertainty stemming from the interpretation of tax laws.
India is, by now, well known for its tax litigation history. Most revenue audits end up in litigation for the taxpayer. Multinational corporations, in particular, have suffered especially on the transfer pricing front. In this context, our team has the unique distinction of an excellent track record in terms of representation and litigation support. We pride ourselves on our high success rate at the representation stage itself. This results in doing away with the need for litigation, thereby saving our client a huge amount of time, effort and money.
Besides being well equipped to handle Indian tax matters, we have built up capabilities in offshore tax as well. We can manage the tax returns of your expatriate workers in foreign countries. We can also handle Value Added Tax (VAT) compliances of all your subsidiaries across the globe. Through our international network partners, we can also provide you with offshore tax support in over 100 countries.
While identifying tax risks is essential, monitoring the implementation of the designed procedures is another important factor in tax risk management. Our team understands the need for evaluation and reviews the success of the tax risk framework regularly.
While India has refined and re-aligned its various indirect taxes, there is still a plethora of taxes (value-added tax (VAT), central sales tax (CST), service tax, customs duty, excise duty, entry tax, etc.) and compliances that an organisation must manage to prevent leakages.
At SKP, we take an integrated view of your supply chain requirements and provide consulting services right from customs duties on imports, VAT and CST on domestic sourcing or local sales, to excise duties on local manufacturing and service tax on services.
With the changing indirect tax landscape in India, our team of specialists is equipped to support you in implementing new laws and meeting compliance requirements. Through our well-researched and lucid content, you will be able to understand the various options available to your organisation while putting together your supply chain. This would help you minimise tax costs and risks while taking advantage of the available exemptions, abatements, credits and set-offs.
The upcoming implementation of a single Goods and Services Tax (GST) in India is also expected to have substantial impact on businesses across sectors. We are looking to work with organisations to decode the new GST regime and attempt to find solutions to the various ambiguities.
Our services include:
- Litigation support
- On-call advisory
- Special assignments
- Bid evaluation
- All-India VAT compliance
Formulate and implement a global transfer pricing policy
- Formulating and assisting in implementing an optimal transfer pricing policy, considering transfer pricing issues, international tax, exchange control, value added tax, service tax and regulatory issues
- Aligning transfer pricing with the client’s global business goals and objectives
- Developing transfer pricing strategies blending Indian and overseas tax requirements (global transfer pricing), with a special Asia-Pacific focus
Review existing transfer pricing policy
- Ensuring adherence to transfer pricing policy (Indian and global)
Assistance with respect to special transactions
Our services and expertise span over all areas of transactions, specifically:
- Inter-company financing (loan and guarantee pricing)
- Royalty and other payments for intangibles
- Cost contribution arrangement (CCA)
- Management fee and other intra-group transactions
- Our experts assist clients in establishing fair valuations of businesses and/or intellectual property associated with business restructuring or mergers and acquisitions
- Benchmarking support by accessing Indian and global databases
- Maintenance of robust documentation as per Indian and overseas jurisdiction requirements
- Assisting in compilation of “master file” and “country-specific” documentation
- Issuing Form 3CEB (CA/CPA Certificate) as required under Indian regulations encompassing international transactions as well as domestic transactions covered under transfer pricing
Competent authority negotiations, APA and litigation support
- Experienced in protecting clients' interests and defending the transfer pricing policy before the APA/competent authorities and even on-the-field tax authorities