Tax and Regulatory

Tax and Regulatory

Tax and Regulatory

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Constant tax, regulatory and judicial changes in India are challenging Indian and multinational companies to stay on top of ever-changing developments. Now more than ever, companies must have awareness of tax and regulatory issues stemming from their investments and operations, changes to their business structure, and geographic expansion. Protiviti’s professionals understand these challenges and help organisations address all matters relating to tax, regulatory and in-bound/out-bound investments, in a cost-effective manner. Our professionals work with clients around the world, and appreciate the diverse, complex challenges global companies must address. We use local knowledge and technical know-how to provide advice and ideas on complex issues. In addition, we apply our in-depth industry knowledge, and through our collaborative, global-network approach, provide an end-to-end solution, from planning to implementation.

Our services include:

Corporate Tax:

  • Compliance Support - Obtaining requisite initial registrations for entity and offices set up in India, assistance in obtaining withholding tax orders, direct tax compliance support, assistance/review of advance tax computations, preparation and filing of corporate tax returns including withholding tax returns
  • Advisory Services - Advising on tax implications arising out of changes in the economic environment and formulating effective tax strategies
  • Health Checks and Reviews - Undertaking comprehensive reviews/health check of business operations to optimise taxes, admissibility to tax incentives/benefits, reduce potential exposure and improve tax compliance.
  • Due Diligence - Conducting tax, regulatory, financial, operational and commercial due diligence.
  • Representations - Representation before relevant government authorities on tax reforms, highlighting and getting clarifications on industry issues.
  • Litigation Support - Drafting replies to notices, appeal submissions etc., appearances & arguments before adjudication & appellate authorities up to the Tax Tribunal, briefing senior counsel on need basis, obtaining no objection certificate, and advance rulings.

International Tax

  • Inbound (investment in India) and outbound investment (out of India) services - Evolving Indian and overseas entity structure (advising on optimal vehicle such as branch, subsidiary, joint venture, limited liability partnership); strategising funding and repatriation options, review of international tax attributes including planning for group effective tax rate, evaluating Intellectual Property (IP) domicile jurisdiction and structuring IP transfer in a regulatory and tax efficient manner.
  • Assistance to Qualified Foreign Investors (“QFI”) and Foreign Institutional Investors (“FII”) - Assistance to QFI and FII in understanding the requirements prescribed under various Indian regulations, advisory services to QFI and FII while making investment in India, assistance in tax efficient disposal/sale of such investments in India, compliance services to such investors with regard to timely filing of corporate tax return/other compliances requirements in India as may be applicable.
  • Tax compliance support services to various foreign players in India - Assistance in obtaining initial registration viz., permanent account number, tax deduction account number etc. by the foreign entity in India, direct tax compliance support, assistance/review of advance tax computations, preparation and filing of corporate tax returns including withholding tax returns.
  • Tax advisory support services - On the international aspects of tax laws including the interpretation of international tax treaties in line with the OECD commentaries.
  • Tax litigation support services - Assistance in obtaining advance ruling, no objection certificate from the Income-tax department in India, assistance in preparing and submitting legal submissions before the Income-tax authorities including appellate authorities, assisting the legal counsel in preparing or representation for appeals, writ petition and special leave petition before the Indian Apex Court and court subordinate to it, drafting and presenting applications to the competent authority for Mutual Agreement Procedure under tax treaties.

International Assignments

  • Compensation structuring including review of policies and/or drafting of policy document.
  • Drafting tax equalisation policy, its implementation, preparation of the tax equalisation calculations and year end reconciliations.
  • Effective compliance both for the employer and the employee: 
    • For Employer: Assistance in obtaining tax registration/tax deduction account number, running tax estimates for withholding tax purposes including filing of quarterly withholding tax returns etc.
    • For Employee: Arrival/departure tax consultations, tax registration, assistance in preparation and filing of Income tax/Wealth tax return, tax clearance and representation before tax authorities.
  • Employees Stock Option Scheme (ESOP) planning and advisory.

Transfer Pricing

  • Advisory Services – Assistance in setting up of Transfer Pricing (TP) Policy; implications of existing or proposed transactions; Intellectual Property (IP) planning; attribution of profits; cross-border financing and treasury solutions; strategies to manage global effective tax rate and cash flows, custom and TP harmonising.
  • Statutory Documentation – Develop local or global transfer pricing documentation and defence files; review of internal controls vis-à-vis corporate governance requirements
  • Due Diligence- Due diligence to support transactions; diagnostic review of a group’s transfer pricing policy, positions and documentation; FIN 48 and tax provision support.
  • Audit and Litigation Support- provide effective representation locally and globally through all phases of controversy resolution; TP audit and litigation defence strategy; Mutual Agreement Procedure, guide companies through the process of requesting Advance Pricing Agreements.

Indirect Tax

  • Compliance Support & Outsourcing - Obtaining required registrations & licenses, compliance support/outsourcing on all India basis, preparation of customised compliance manuals, single point contact & centralised coordination for tax payments, filing of returns and completion of documents.
  • Ongoing Advisory- Advice on classification, valuation, applicability of taxes on transactions and admissibility to tax benefits/exemptions, opinions on indirect taxes, identification of innovative tax planning opportunities.
  • Trade Related Advisory - Assistance in availing benefits under foreign trade policy schemes, setting up and operationalising Export Oriented Units (EOUs)/Software Technology Parks (STP) units/Special Economic Zone (SEZ units), advisory and operational assistance for availing benefits under Free Trade/Regional Trade Agreements.
  • Indirect Tax Health Checks & Reviews- Undertaking comprehensive reviews/health checks of business operations to optimise indirect taxes, reduce potential exposure and improve tax compliance, conducting specific due diligence reviews (buy side/sell side).
  • Representations - Representation before relevant government authorities on tax & trade policy issues, developing economic justification for tariff/non-tariff concessions, representational assistance in anti-dumping& other non-tariff proceedings.
  • Litigation Support - Drafting replies to notices, appeals & submissions, appearances & arguments before adjudication & appellate authorities up to the Tax Tribunal, appearance & arguments before anti-dumping authorities, briefing Senior Counsel on need basis, assistance in obtaining advance ruling.
  • Special Valuation Branch (SVB): advice regarding approach to SVB, assistance in submissions, representations and reviews.
  • Research and Development (R&D) Cess: Applicability of R&D Cess on import of technology deputation of foreign personnel and credit adjustment against service tax.
  • Engineering Procurement Construction (EPC) and Infrastructure contracts and associated tax optimisation opportunities.

Corporate Reorganisation

  • Designing alternate effective tax and regulatory structures;
  • Meeting commercial objectives within regulatory constraints;
  • Reviewing transaction documents;
  • Resolving post transaction issues

Acquisition Structuring

  • Advise on domestic and inbound acquisition structuring for strategic acquirers – directly or through intermediary jurisdictions.
  • Assistance in drafting/reviewing and finalising shareholders, joint venture and other relevant business agreements

Outbound Structuring

  • Structuring options and choice of alternate jurisdictions to identify a holding company from the profit repatriation and exit efficiency perspective.
  • Structure an acquisition either through an asset purchase or share purchase from tax efficiency perspective.
  • Advice on availing foreign tax credits.

Promoters Stake Enhancement

  • Consolidation of stake and rationalisation of ownership structure;
  • Unlocking value in appropriate jurisdiction; and
  • Succession Planning

Divestment Advisory

  • Structuring tax and regulatory efficient exit options – demerger, business/asset disposal, stock sale etc.

Private Equity / Venture Capital Advisory

  • Investment and exit structuring through alternative mechanisms (such as Initial public offering (IPO)stake sale, buy back)
  • Analysis of flow of consideration and related tax and exchange control aspects
  • Review of transaction documentation from tax, regulatory and commercial perspective

Financial Structuring

  • Extensive analysis of each transaction, enabling conceptualisation, selection and implementation of options from a tax and regulatory perspective
  • Structuring of transactions for entities in/levels at which funds should be raised or repatriated
  • IPO advisory for Indian/overseas listing
  • Instruments that should be used to raise or repatriate funds
  • Advice on profit repatriation

Financial Accounting

  • Financial Reporting
  • Book Keeping

Tax Advisory and Compliance

  • Start-up support – Advise of evaluating growth plans, creating reporting structures and developing internal policies and systems
  • Tax data integration – Mapping policies and standards and design solution and data model workflows on finance, accounting and taxation management tools
  • Assist business to stay up-to-date with continually changing local tax regulations
  • Provide integrated approach to tax management
  • Providing businesses with an efficient way of handling tax compliances workload and meeting deadlines.

Human Resources and Workforce Management

  • Customise and setup payroll system as per business requirements
  • Calculate tax withholding and other deductions for employees
  • Generate compliance and business reporting
  • Prepare income and withholding certificates
  • Administrative support on hiring, contracting and maintenance of employee files

Tax Litigation Services

  • Drafting factual and legal submissions before the Indian Income-tax authorities, Dispute Resolution Panel (DRP) and Appellate authorities
  • Exploring and using alternative tax dispute resolution avenues
  • Preparing advance ruling application and representing before the Authority for Advance Rulings (AAR) for settling a tax position involving non-resident
  • Drafting and presenting applications to the competent authority for MAP under tax treaties (DTAA).
  • Assisting the legal counsel in preparing or representing for appeals, writ petition and special leave petition before Indian Apex court (Supreme Court) and court subordinate to it (High Court)

Regulatory Compliance

  • Carrying out regulatory compliance/health check review
  • Due diligence and advising on regulatory implications of a particular transaction, business model, documentation support, and regulatory compliance
  • Advising on optimal business/entity structure (such as branch, project office, liaison office, subsidiary, joint venture, limited liability partnership) and funding and repatriation options,
  • Review of international tax attributes including planning and achieving a competitive worldwide effective tax rate reduction,
  • Evaluating Intellectual Property (IP) domicile jurisdiction and structuring IP transfer in a tax efficient manner
  • Formation of companies, registration (including renewal of such registrations)/obtaining approvals from Reserve Bank of India (RBI), Foreign Investment Promotion Board (FIPB), various regulatory department/(s), and offices of various Ministries
  • Providing assistance in compounding and similar proceedings with various regulators
  • Providing assistance in drafting/reviewing and finalising shareholders, joint venture and other relevant business agreements.