Tax Advisory & Management Services
At SGA we are continuously endeavoring to help the clients achieve the desired results through customized and innovative solutions. We are focused on exploring opportunities and leveraging them to enhance the advantage to the clients in the form of significant tax savings.
We at SGA provide the following Tax Practice :
– Corporate and Personal Tax Compliance including Income-Tax Assessments and Appeals before the Commissioner (Appeals).
– Tax Planning for Corporate and Individuals
– Filing of Income-tax Returns for Corporate (domestic and foreign companies) and Individuals (Residents and Non-Residents individuals, LLP’s, Firms and others.
– Filing of Quarterly TDS / TCS Returns under the Income Tax Act, 1961
– Compliance with laws relating to Service tax , Value Added Tax, Central Sales Tax, Profession Tax etc.
– Filing of Foreign Liability and Assets Returns (FLA) as stipulated by the Reserve Bank of India
Today, Corporate and Individuals both are required to comply rigorously with numerous essential Income Tax Compliances. These punctual compliances require expert knowledge & experience, and are quite technical in nature. Moreover, majority of the Income Tax Compliances now-a-days are required to be completed on-line and need specialized knowledge and expertise. We at SGA , exclusively specialize in providing Time-bound and reliable Tax services to its numerous clients of diverse sectors. Our wide range of Tax services encompasses all aspects of Indian Income Tax Laws, Service Tax Laws, Sales Tax, Profession Tax Laws and includes the following services.
Broadly taxes in India are divided into two categories :
– Direct Taxes (Income Tax)
– Indirect Taxes (Sales Tax, Service Tax, Customs & Excise Duties)
Direct Taxes Advisory:
Income Tax :
Taxation is an extremely complex subject and needs professional skill of the highest order and the consultant has to keep track of frequent changes and modifications made in the Income tax rules from time to time to be able to guide aptly in tax planning, documentation and represent the cases skillfully. Even a minor lapse can cost huge money to an assessee. So we offer pragmatic solutions to manage the affairs in the most tax efficient manner. We at SGA have an aptitude for providing expert advice in tax planning.
As Indian taxation is prone to many changes, so decision making should be perfectly updated with new amendments. After conducting in-depth analysis of the changes we send reports which communicate the changes lucidly and in simple English language for each comprehension:
– Recommending tax strategies which would minimize tax incidence.
– Tax planning for Resident and Non-Resident Indians (NRI’s)
– Tax Planning for Overseas entities desirous of setting up a business in India and Indian entities desirous of setting up an overseas business/base/branch office.
– Tax representation before the Indian tax authorities at various levels
– Transfer Pricing Studies & Audit.
– Conducting Tax Audit U/s. 44 AB of the Income Tax Act, 1961.
– Certification for Form 15CB required for remitting funds outside India
Income Tax-Representation by SGA :
Income tax assessing officers are generally of very suspicious nature and confront the assessee with very tricky questions during the course of assessment . With one stroke of pen they raise demands of colossal amounts unreasonably. The tax representative, therefore, has to be a very knowledgeable, experienced and an eloquent counsel to be able to derive full justice from the revenue authorities lest the client should face any harassment or undue loss.
Indirect Taxes Advisory :
At SGA, we also undertake the advisory and compliance services on various Indirect Taxes , such as Sales Tax (Value Added Tax), Service Tax & Profession Tax. Our Indirect Tax Advisory Services include :
– Advising on structuring of transactions, which would help minimize the incidence of State Value Added Taxes and Service Tax within the applicable laws.
– Tax Representation before the Indian tax authorities.
– Advising on issues relating to VAT, Central Sales Tax, Service Tax , Profession Tax etc.
– Preparing and filing of tax returns under VAT, Central Sales Tax, Service Tax , Profession Tax and advising on the quantum of tax payments.
– Advisory Services for Assessments
– Preparation of records for the Service Tax credit and various other records under the Service Tax Law
– Advisory Services for the effective purpose of Tax Planning
– Conducting VAT Audit
Brief Information about Various Taxes in India :
Income Tax :
Income earned in a financial year is liable to tax as per the rates prescribed for that year. A financial year runs from 1 April to 31 March of the following year. India follows a residence based taxation system. Broadly, taxpayers may be classified as residents or non-residents. Individual taxpayers may also be classified as ‘residents but not ordinary residents’.
An Indian company is always an Indian resident. Additionally, any other company whose affairs are wholly controlled and managed from India is also a resident. Any other company would be a non-resident.
Residential Status under the Indian Income Tax Act, 1961 :
An individual is resident in India if he is in India in the tax year for:
– 182 days or more; or
– 60 days or more (the period of 60 days stands changed to 182 days or more for Indian citizens or persons of Indian origins on a visit to India; and also for citizens of India who leave India for employment abroad as member of a crew of an Indian ship) during the tax year, and an aggregate of 365 days or more during the four years preceding the tax year.
An individual who does not satisfy the above conditions is a non-resident.
A resident is “not ordinarily resident” in India in any tax year if he:
– has been “non-resident” in India in 9 out of the 10 previous years preceding that year: or
– Has during the previous seven years, proceeding that year, been in India for a total period of 729 days or less.
Foreign Nationals :
Indian tax law provides for exemption of income earned by foreign nationals for services rendered in India, subject to prescribed conditions. For example
Remuneration from a foreign enterprise not conducting any business in India provided, the individual’s stay in India does not exceed 90 days and the payment made is not deducted in computing the income of the employer;
Remuneration received by a person employed on a foreign ship provided his stay in India does not exceed 90 days;
Remuneration of foreign diplomats, consular staff, trade officials and their staff and family; and
Income of an employee or consultant of a government approved foreign charitable institutions.
Resident Companies :
Indian resident companies are liable to tax at 30 % plus surcharge & education cess as applicable. Additionally; companies are also liable to dividend distribution tax (DDT) at 18.5 per cent (plus applicable cess) on the amount of profits distributed to shareholders.
Non-resident Companies :
Non-resident companies are typically liable to tax at 40 % plus surcharge & education cess as applicable. per cent on net basis. However, income from long-term capital gains is taxable at the rate of 20 per cent plus applicable cess.
Minimum Alternate Tax(MAT) :
The domestic tax law also requires companies to pay MAT in lieu of the regular corporate tax, in a case where the regular corporate tax is lower than the MAT. MAT is computed on the book profits; subject to certain prescribed adjustments MAT paid in any year is now available as credit in any subsequent_year.
Dividend Distribution Tax(DDT) :
Dividends are currently exempt from taxes in India. However the company paying the dividends is required to pay DDT on the amount of dividends declared, at the rate of 18.50 per cent (plus applicable cess). DDT is a tax payable on the dividend declared, distributed or paid.
Value Added Tax / Sales tax :
Introduced to the Indian Taxation System from April 1st, 2005, the Value Added Tax (VAT) is a form of indirect tax, and takes into account all the multiple sales taxes connected with the sale of a product. VAT calculates the sales taxes in a different manner, but includes the taxes comprehensively. VAT/Sales Taxes are State level taxes levied on the sale of goods, contract work, and the hiring of these. With the introduction of VAT, the compliance requirements have increased manifold, and therefore, there arises the need for expert & elegant services for the proper maintenance of records, and the calculation of the tax liability.
Service Tax :
Service tax is a tax levied by Central Government of India on services provided or to be provided excluding services covered under negative list and considering the Place of Provision of Services Rules, 2012 and collected as per Point of Taxation Rules, 2011 from the person liable to pay service tax. Person liable to pay service tax is governed by Service Tax Rules, 1994 he may be service provider or service receiver or any other person made so liable. It is an indirect tax wherein the service provider collects the tax on services from service receiver and pays the same to government of India. Few services are presently exempt in public interest via Mega Exemption Notification 25/2012-ST as amended up to date & few services are charged service tax at abated rate as per Notification No. 26/2012-ST as amended up to date. Presently from 1 June 2016, service tax rate has been increased to consolidated rate @ 15% (Basic Rate of Service Tax being 14 % + “Swachh Bharat Cess(0.50%)” + “Krishi Kalyan Cess” (0.5%) ) of value of services provided or to be provided. The said service tax rate now is consolidated rate as education cess & secondary higher education cess are subsumed.