Taxation is a crucial aspect of doing business in today’s globalised world. The high rate of tax and constant changes in India's tax and regulatory environment can make the task of establishing and managing operations in the country a complex one.
The Indian tax environment is witnessing rapid changes with the introduction of Place of Effective Management (POEM) regulations and Income Computation and Disclosure Standards (ICDS), the potential implementation of the recommendations from the BEPS Action Plan, along with an overhaul of the existing tax law and procedures. For businesses, this has resulted in a significant rise in the risk of non-compliance with India’s tax laws. Considering the high direct and latent costs of litigation in India and the active approach of the Indian revenue authorities, tax risk management and mitigation are essential for the smooth functioning of a business in India.
The SKP Tax team offers a full spectrum of specialised tax services from managing tax matters akin to an in-house tax team to independent business advisory, business structuring, assistance in tax compliances, and litigation and representation support. Our services are aimed at supporting businesses in running efficiently and effectively, with strong accountability and governance.
Inbound Investment Structuring
SKP’s expertise enables clients to implement a structure in India by setting up tax-efficient operating vehicles and analyse alternative investment jurisdictions. We have assisted our international clients at various stages of their entry into India in line with their group objectives.
Business Set-up and Registration
In India, business expenditures can only be allowed as a deduction if the business has been set up according to the Indian tax law. We assist clients in determining the actual date of set-up (commencement of business) for their operations in India in the most tax-efficient way by understanding the business and collating the necessary documents. We also help our clients obtain the necessary registrations such as Permanent Account Number (PAN), Tax Deduction Account Number (TAN), etc. with the Indian tax authorities.
Return of Income
SKP assists businesses in preparing an accurate Tax Return after proper analysis of the law and the judicial precedents, and by taking technically correct positions on contentious matters. Our holistic approach, backed by years of experience with the tax authorities, allows our clients to mitigate potential tax risks that could arise during Revenue Audit, and helps prevent surprises.
ICDS Impact Analysis and Implementation
SKP is among the front-runners in examining the Income Computation and Disclosure Standards (ICDS) in detail. We have a strong team dedicated to helping our clients ascertain the impact of ICDS on their tax matters, quantifying the impact and working with the management to arrive at strategic positions to be taken on each of the ICDS.
Place of Effective Management (POEM)
With our active exposure to international tax matters, we are well placed to ascertain the effect of POEM regulations on businesses at a group level by evaluating Indian regulations and comparing them with POEM regulations adopted globally.
Permanent Establishment (PE)
Our strong research base enables us to help our clients examine potential PE exposures in India. We have worked closely with our clients in building business models that mitigate the PE exposure. Where a PE is constituted, we provide holistic compliance services, including maintaining books of accounts and undertaking required compliances.
Limited Liability Partnership (LLP)
Based on our in-depth knowledge of the evolving role of LLPs and the tax benefits that accompany the LLP structure in India, we assess and recommend the possibility of moving operations of an existing Indian company to an Indian LLP in a commercially feasible and tax-efficient manner. We assist businesses in evaluating tax implications on LLP conversion, drafting LLP agreements and implementation services.
Tax Risk Management and Mitigation
We assist clients in managing their overall tax risks right from carrying out a tax health-check and preparing status reports to identifying and assessing tax risks, designing controls, and monitoring and evaluating them. We provide advisory, compliance and litigation support for domestic and international tax matters.
Appeals and Representation
SKP has gained great recognition in representing clients before the tax and regulatory authorities. Our in-depth knowledge of our clients’ businesses and the applicability of tax laws to all aspects of their business has enabled us to attain one of the highest success rates in litigation in India. We strive to resolve tax disputes at the Revenue Audit stage itself. We also assist our clients in achieving effective closure of tax matters with the tax authorities and in obtaining lower withholding tax certificates and tax refunds.
Advisory and Consultancy
While advising businesses, we maintain an unwavering focus on the business objective behind the transaction. This approach enables us to suggest the most practical solution. We also assist clients in implementing our suggestions.
SKP’s expertise in tax due diligence enables our clients to smoothly undertake or be prepared for mergers, acquisitions, joint ventures or strategic divestments with complete peace of mind as we address the tax intricacies involved with due attention and caution.
Outbound Investment Structuring
We have assisted several Indian clients in their global expansion plans by advising them to structure their investments outside India from a business and tax-efficiency perspective.
Taxation services for Foreign Portfolio Investors (FPI)
With an in-depth understanding of the regulatory framework applicable to FPIs, we provide a complete bouquet of taxation services comprising advisory (including advising on structuring investments in India in a tax-efficient manner), day-to-day accounting of cash segment transactions, compliance services (tax returns and remittance certificates) and representation before tax and regulatory authorities.
Personnel Tax Structuring Including Expatriates
We assist in framing and developing optimum remuneration structures for local and expatriate employees, along with developing robust documentary and administrative safeguards including employee policies, based on the organisation’s needs.
Withholding Tax and Advance Tax
We assist clients in reviewing their withholding tax compliances at regular intervals and undertake withholding tax compliances. Our expertise in international tax law enables us to provide comprehensive solutions by examining tax treaties and related documentation. Our solutions provide a balance between the legal requirements and business realities to help businesses deal with contentious issues. We also support our clients in advance tax calculations to ensure that the advance tax paid neither significantly falls short nor exceeds the amount due.
Registrations for Charitable Institutions
We assist businesses in smoothly obtaining registrations for their charitable trusts and bodies from the Indian tax authorities. We conduct an upfront evaluation of the probability of considering a particular activity as a ‘charitable activity’ under the Indian tax laws and ultimately, obtain the registration from the tax authorities.
Corporate Social Responsibility (CSR) Compliances
We assist our clients in evaluating the tax aspects of alternative CSR spending avenues particularly in terms of setting up CSR trusts.
Foreign Account Tax Compliance Act (FATCA)/Common Reporting Standard (CRS) Services
Our specialised team provides integrated solutions on implementation, compliance and reporting requirements under FATCA and CRS Laws, including assistance with respect to entity classification and other allied services.
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 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. To know more, please visit our dedicated GST page.
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
Watch Maulik Doshi, Partner, International Tax and Transfer Pricing, discuss the impact of the OECD's BEPS Reports on India on The Firm, CNBC-TV18
For the latest developments in transfer pricing, click here.
SKP Tax Trends
Our quarterly newsletter on key direct tax developments in India
SKP Transfer Pricing 360˚
Our quarterly newsletter on the latest transfer pricing developments
Volume 2 Issue 4 (January-March 2016)
Volume 2 Issue 3 (October-December 2015)
Volume 2 Issue 2 (July-September 2015)
Volume 2 Issue 1 (April-June 2015)
Volume 1 Issue 4 (January-March 2015)
Volume 1 Issue 3 (October-December 2014)
Volume 1 Issue 2 (July-September 2014)
Volume 1 Issue 1 (April-June 2014)
For our latest articles and updates on Tax in India, please click on the links below:
Investment opportunities for NRIs in India
Tax laws and regulations applicable to NRIs an overview
TaxManagementIndia.com: ‘Relevant Date’- A Relevant amendment and a ‘Big Leap’ for the Service Exporters for claiming refunds
TaxManagementIndia.com: A Critique - Liberalisation of warehousing provisions in respect of EOUs/EHTPs/STPs
Taxindiaonline.com: Beneficial provisions related to job work in Budget 2016
VATinfoline: Union Budget 2016 - Rationalisation of CENVAT Credit (Part I)
VATinfoline: Union Budget 2016 - Rule 6 of CENVAT Credit (Part II)
TaxManagementIndia.com: Key Procedural Changes in Service Tax and Excise
TaxGuru: Budget 2016 - Excise duty exemption to Ready Mix Concrete (RMC)-Big relief to Real Estate/Construction Industry
TaxGuru: (Ab)normal period for issuing notices under Service Tax
CorpKonnect: Budget 2016 - Impact on Direct and Indirect Taxes
CorpKonnect: Budget 2016 - Initial Reactions on Indirect Taxes
Taxsutra.com: Experts react to Indirect Tax Budget Proposals
Taxindiaonline.com: Interest-ing change in interest of assessee
Taxindiaonline.com: Liability shift in Mutual Fund sector
Taxindiaonline.com: Banks, FIs and NBFCs – Rule 6 of CCR adapts
Maulik Doshi, Partner, SKP shares his views on the India-Mauritius Tax treaty. India and Mauritius signed a protocol on 10 May 2016 which gave effect to the renegotiated India-Mauritius Tax Treaty. The new terms will give India capital gains rights for the sale of shares in India and protects the current investments. For Mauritius, the derivative and F&O trading still remain outside the ambit of this treaty.