DIRECT TAXATION

International Taxation Services

Navigate global tax landscapes with our comprehensive international direct tax service which can be classified as follows:

Cross-Border Taxation Laws and Regulations: In India, cross-border taxation is governed by provisions in the Income Tax Act, of 1961, and international treaties. Key aspects include Double Taxation Avoidance Agreements (DTAAs) to mitigate double taxation, Transfer Pricing Regulations to ensure fair pricing in inter-company transactions, and rules for Controlled Foreign Companies to curb profit shifting.

  • The landscape of our service offerings encompasses the following:
  • Advisory and assistance for entering the Indian market and setting up entities
  • Structuring for inbound and outbound investments
  • Funding solutions for cross-border investments and acquisitions
  • Compliance and reporting obligations

Expatriate Services: We provide a comprehensive analysis on the tax and regulatory implications on seconding an expatriate in India. The advice usually covers Permanent Establishment issues, tax efficient salary structure advice, the applicability of social security contributions, foreign exchange issues, Double Taxation Avoidance Agreement and other tax compliance requirements including but not limited to Obtaining FRRO Registration (Foreign Regional Registration Offices) and Computing Withholding taxes and making tax equalization statements.

Advance Pricing Agreement (APA)

APA is an agreement between the tax authority and the taxpayer through fixing the transfer pricing method after finalizing the terms and conditions of the APA, which has been applied for a specific period maximum of 5 years.

Types of APA

  • Unilateral Advance Pricing Agreement (UAPA): A tax arrangement between a taxpayer and a single tax authority to set transfer pricing rules for intercompany transactions.
  • Bilateral Advance Pricing Agreement (BAPA): An agreement between a taxpayer and two tax authorities to establish transfer pricing rules, addressing potential tax issues in both jurisdictions.
  • Multilateral Advance Pricing Agreement (MAPA): A transfer pricing agreement involving three or more tax authorities to resolve pricing issues and ensure compliance across multiple jurisdictions.

Our range of services includes the following:

  • Assistance in evaluating & forming of strategy for the APA filing of an application for the APA Tax Authority;
  • Assistance in representation before the tax authorities for negotiations and other matters related to APA.
  • Assistance in compliance after getting the agreement signed with the CBDT.

Read More: Advance Pricing Agreement

Transfer Pricing Services

Transfer pricing is a key component of where business and tax intersect for multinational companies. Intercompany pricing has faced huge challenges in the ever-evolving legal and geopolitical landscape. 

The broad categories of services include:

  • Design and planning of related party transactions and arrangements
  • Assistance in maintaining the transfer pricing documentation, viz, report in Form 3CEB, country by country reporting, master file, transfer pricing study report as required by the Indian Transfer Pricing regulations, and filing of the same with the Indian Revenue Authorities;
  • Advice on tax-effective supply chain models
  • Controversy management, including representation for audits, litigation support and assistance with competent authority negotiations
  • Assistance on Advance Pricing Agreements and other alternate dispute resolution mechanisms

Corporate Tax

The Indian taxation system has experienced numerous reforms, posing domestic and international challenges for businesses. Navigating the complexities of tax to enhance business value is a crucial aspect of significant business decisions. Organizations need professional tax services to keep up with the ongoing changes in the tax and regulatory landscape.

ASC is a leading provider in the Corporate tax compliance sector. Leveraging our global network of member firms, we offer extensive coverage around the world. We provide domestic tax compliance services for single entities and a streamlined 'one-stop-shop' solution for our multinational clients. The broad categories of services include:

Tax Advisory

  • Assistance with meeting statutory compliance requirements.
  • Tax diagnostic reviews to identify uncertain tax positions and implement effective risk mitigation strategies.
  • Health checks for tax withholding practices.
  • Strategies for minimizing and optimizing taxes, including identifying available deductions and other planning opportunities.
  • Guidance on enhancing capital structure and optimizing the debt-equity ratio.
  • Tax advice and optimization strategies for transactions such as EPC and turnkey contracts.
  • Assessment of ICDS applicability and related disclosure requirements.
  • Review of Ind-AS applicability and necessary actions.
  • Evaluation of the applicability of POEM (Place of Effective Management).
  • Advice on the applicability of GAAR (General Anti-Avoidance Rules).
  • Expert assistance in streamlining tax refunds and resolving demand settlements.

Tax Compliance

  • Assistance in the preparation and filing of withholding tax returns, corporate tax returns, or overseas entity tax returns in India.
  • Assistance in preparation and advice on advance tax payments and optimization.
  • Assistance in registering on the e-filing Portal for ITR Filing and Tax Deductor and Collector including but not limited to Permanent Account Number (PAN) and Tax Deduction at Source (TDS) etc.

Tax Representation and Litigation Services

Representation of clients at various levels i.e. Assessment proceedings, CIT(Appeals), ITAT, DRP, AAR and APA and support during High Court and Supreme Court litigation

Trust, Family Office & Succession Planning

Increasing trust registration and leveraging tax benefits in India can significantly enhance a trust's financial efficiency. Registering a trust offers legal recognition and eligibility for various tax exemptions, including income tax benefits under Section 12A and 80G of the Income Tax Act, which can provide deductions to donors. Additionally, trusts can benefit from reduced tax rates on certain types of income and exemptions from wealth tax. Proper registration and adherence to regulatory requirements are crucial for maximizing these advantages.

ASC can facilitate trust registration in India by providing expert legal guidance on succession and estate planning, preparing and filing necessary documentation, and ensuring compliance with regulatory requirements. Our services also include advice on combining various legal structures to protect family wealth from personal and legal risks, setting up and managing private family trusts and other holding structures, and establishing effective governance frameworks to ensure the welfare and maintenance of family members while facilitating the smooth transfer of control and assets to the next generation.

ASC can help establish the Trust and ensure compliance with the specified type of Trust as outlined below.

Achieving direct tax compliance is crucial for safeguarding your financial health and avoiding unnecessary risks. Trust us to navigate the complexities, ensuring accuracy and peace of mind as you focus on your core business objectives

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