In the recent past, India has witnessed certain big tax policy changes such as GAAR, taxation of indirect transfer of Indian assets in overseas deals, tax accounting standards, each with its own set of complications and resultant impact on the business.
With uncertainty comes opportunity, but the key is to prepare now. Most business decisions have Tax implications which are complicated by nature. We keep ourselves updated and work with our clients to keep them informed on Tax implications to their businesses.
With an unwavering focus on value combined with an unique relationship approach, we ensure that our clients receive uncomparable level of involvement, quality service and responsiveness to manage their tax issues in a sound manner.
The burden of demonstrating the arm’s length nature of the international transactions rests on the taxpayer. Rule 10D of the Indian Income Tax Act, 1962, prescribes thirteen mandatory documents in this regard and requires the taxpayer to maintain documentation contemporaneously. Some of the requirements are general in nature while others are more specific to the relevant international transactions.
Significant amount of tax compliance is now mandatorily required to be done electronically. It is observed that, increasingly companies are interested in outsourcing and centralising such tax compliances. This also ensures consistent tax treatment across locations with reduced legal issues.
Taxation laws have always been complex and a subject matter of interpretation/ litigation. This leads to the Companies receiving Notices requiring them to explain the rationale for following a particular interpretation/ claiming tax benefits, etc. This generally culminates into a long draw litigation matter. Further it is always advisable to obtain upfront clarification from tax offices on specified issue if there is a mechanism in place.
We at QED Corporate Advisors, can assist Companies in better handling and early closure of such matters.
There are always due concerns related to various taxes and duties that are imposed on them. In order, to have a fair understanding of the local tax and regulatory laws, and their rights, our professionals at QED, offer personalised advisory services to NRI.