Supporting clients to represent before Senior Government authorities

Often businesses may need some representation and advocacy to articulate the genuineness of their application of claim. It could be a licence, a special permission, a classification issue holding up customs clearance or a consent for an exemption etc.  Such delays can lead to delay in executing the project and ultimately increase costs.

  • Tax Quotient with its expertise and experience can support and guide you to articulate the your business plans with justification for the government concurrence. We could also conduct research to identify precedents of a similar nature if any to provide the necessary assurance to the Government authorities.
     
     

Business structuring and tax planning

Setting up a new business, expanding an existing business, mergers or de-mergers of entities invariably creates significant indirect tax implications. If done right, tax inefficiencies due to inappropriate structuring can be minimized.  In Indian taxes, especially in indirect taxes, we encounter overlapping Central and State tax levies which may lead to double taxation, loss of credit or a higher tax rate.  Business structuring can be planned to ensure tax efficiency within the legal framework without violating or breaking any law. The aim is always to comply 100% yet adopt the most efficient tax route available within the framework of the tax laws.
Tax Quotient will essentially provide the following services:

  • Analyses of the proposed transactions taking into account tax levies at central, state and local levels. Including stamp duties and EXIM implications under the Foreign Trade Policy.
  • Bringing  tax efficiency in terms of the one time taxes payable on the transaction and  future recurring taxes payable paid and credits availed/available. Carrying out legal research to identify similar if not identical situations both nationally and internationally to either rule out or adopt tax position.
  • Vetting/reviewing business transfer agreements or other such agreements for proposed transactions to ensure there are no latent / hidden tax risks due to loosely worded agreements.
     

Health checks and end-to-end business processes reviews for indirect taxes 


Indirect tax laws in India are complex, dynamic and administered by an aggressive tax administration.  Since indirect taxes apply on transactions they apply on innumerable transactions in business operations. Usually the tax computation is embedded as a part of the accounting system. The accounting system to accurately compute taxes should be configured with the right value, tax rates etc. Sometimes tax law changes don’t get incorporated into the tax computing system/engine creating potential tax risks.  Regular (annual or bi-annual) end-to-end reviews of  business processes including ‘order-to-cash’ and ‘purchase-to-pay’ and tax and FTP benefits claimed will minimize risks and ensure that opportunities are not missed.

Tax Quotient undertakes to review the following checks and reviews covering the following:

  • Review taxability, rate of taxation and taxes paid for goods and services and identify inaccuracies and inefficiencies.
  • Review eligibility to indirect tax credits (VAT and CENVAT) and FTP benefits  for exports.
  • Identify indirect tax risks and evaluate them.
  • Provide advice on introducing tax controls and reports for future monitoring
     

     

Strategy to prevent litigation, representations and litigation support  

Indirect taxation in India is prone to disputes and litigation. This means most Companies receive notices to explain their tax positions claiming a lower tax rate, an exemption or some benefit.  Litigation in India is usually long drawn and often gets settled satisfactorily only in the Tribunal or Courts.  However, in the meanwhile to purpose appeals under many indirect tax laws, one is called upon to make a pre-deposit of the tax amount upfront.  This adds to the stress on cash flow for companies. There are situations where an “advance ruling” can be sought upfront from tax authorities before proceeding with a major transaction or business proposal.  Tax Quotient can help the tax payers to handling and early closure of such matters.

Our services cover the following:

  • Drafting replies to notices and appeals against orders before adjudicating and appellate authorities and advising on other legal proceedings including summons, investigations etc.
  • Making applications before Advance Ruling Authority
  • Determining the strategy to represent/escalate issues and make representations before senior officials of the Finance Ministry including the Commissioners, Chief Commissioner and the Central Board of Excise & Customs
  • Draft the applications to Settlement Commission for settlement of cases
     

     

Tax compliance and tax control framework  

Since indirect taxes are transaction taxes, business processes need to be robust to ensure correct taxes are paid and at the right time. This requires a robust system in operation and adequate processes to monitor and provides information from time to time on the status of compliance across geographies within India. Often such processes end up as bureaucratic form filling or certifications with no capability to prevent tax risks. Real risk prevention would need a framework with few but critical controls at appropriate levels together with a risk proofing mindset in management.  The risks are enormous in terms of financial, operational and reputational risks.

Our services and report would broadly cover the following:

  • Studying and mapping the business processes, identifying critical processes and control points  to set off alerts and exceptions
  • Designing a control report which is minimal yet focused on critical aspects of the tax processes to provide a dashboard for the Senior Management periodically. 

GST A Brief Presentation dated 6th April, 2017

Click Here

The Finance Act 2017 comes into effect from 31st March 2017

All changes introduced through various sections in Central Acts, through the Finance Bill will therefore take effect from 31st March, 2017 unless specified.

A New Feature :

Advanced Case Law Search

 

7th April, 2016

The “Advanced Case Law Search” feature in TaxQuotient  enables search on separate parameters such as Court, Tax Type, Date (from & to Range), appellant, respondent and even keywords. This helps you in locating case law you are searching for swiftly.

TIP: #1 : If you want to view the latest cases, just enter the start and end dates keeping all other boxes blank. You will get a list of all available indirect tax cases during that period.

TIP # 2 : Please keep the date range (start to end date) for upto 6 months.

TIP # 3 : Don't forget to reset the search to clear the earlier results before a new search.

Click to enter Advanced Case Law Search

 GST Bill passed by Parliament

 

 

 

The 122nd Constitution Amendment Bill introduced in Parliament in December 2014 has been passed by the Rajya Sabha and now also by the Lok Sabha with the amendments.  Now the Bill must get ratified by at least half the number of 31 State Legislatures which means 16 States and then finally get the approval from the President.

Thereafter the GST Council has to be set up which will determine the GST design at the granular level. This will include the structure of GST including scope of CGST, SGST and IGST, the taxes subsumed, the items/commodities covered and other critical aspects such as the threshold limits for taxability, exemptions, and several other parameters critical for an ideal  GST.

Further, for the GST to operate smoothly, the taxes paid on goods and services at every stage in the value chain needs to be tracked. This requires an IT infrastructure which will track the transactions and taxes paid and form the back-bone of GST. Reportedly considerable work has been already done on it, nevertheless it will need changes to correctly reflect the GST Law proposed by the GST Council and accepted by the Central & State Legislatures.

Last but not the least,  the tax authorities and other stakeholders who will implement the GST need to be trained for a smooth introduction.

Seven questions to know if you 

are paying taxes 

correctly?

If you are the CFO or the Tax Head you ought to read this. Click Here

CESTAT rejects appeal, holds - sample testing a must as importer didn't produce any certificate

On 7th April, 2017 in Maa Bhagwati Coke Vs CC,Jamnagar, CESTAT Ahmedabad rejected the appeal for exemption on imported coal claiming the ash content was <12% and distinguished a SC judgment relied upon by the appellant. The Tribunal held that on testing the coal samples, the report confirmed ash content at 13.1% also the test was necessary saying:

"....it is seen that the appellant have relied on the decision of Honble Apex Court to assure that there was no reason to get the coal tested. However, in the said case, the importer had produced a certificate of CASCOs regarding the ash content of the imported coal. In the instant case, the record shows that no such certificate was produced. In absence of the certificate, it was necessary to get the sample tested in view of the claim of notification by the appellant."

CESTAT Updates

June- July 2016

 

Brief update on CESTAT judgements passed during June 2016 to July 2016. Please note this update is not a summary of the cases but only leads on important issues decided. The links to the judgments are also provided for the full text.

Click here for update

Our Main Services 

in Indirect Taxes

 

  • Business structuring and tax planning
  • Review of end-to-end business processes for indirect taxes
  • Strategy to prevent litigation, representation and litigation support
  • Tax compliance and tax control framework
  • Support on specific issues
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