Indirect Tax Advisory

The indirect tax landscape in India is in it’s evolution stage. Indirect taxes are levied at both central and state levels. Organizations are posed with challenges to analyze that their business structure from an indirect tax perspective and also make sure that the ever growing compliances in the form of reporting etc. are being taken care of.

Understanding these complexities, PMH advises clients in transaction structuring, advisory in GST, customs including legacy issues from excise, service tax, VAT and entry tax laws, restructuring for tax efficient business transactions, interpretation of complex tax laws, risk mitigation, representation at all dispute resolution forums from adjudication and appellate authorities.

Advising on diverse spheres of trade and tax regulations including investment in Special Economic Zones (SEZs) and tax holiday regions, WTO trade protection measures such as anti-dumping and safeguard duty, import and export control, anti-profiteering norms, entertainment tax, legal metrology, drugs and cosmetics regulations, export incentive schemes amongst others. 

A. Goods and Service Tax (GST)

The introduction of GST brought about a major reform in the indirect tax structure of the country. It was introduced with an aim to consolidate multi layered tax system into one single tax. The introduction of GST has far reaching effects on the business operations of almost all organizations.

GST compliances were introduced on the “matching concept” i.e the buyers and sellers data need to be periodically matched in order to eliminate any tax leakages.

1. GST Advisory:

• Interpretation of GST Act and specific sections depending upon the clients’ industry, products, exporter/importer status etc.
• Registration under GST and classification in terms of HSN and SAC codes and the applicable tax rates
• Ascertain place of supply to determine relevant state for GST compliances and tax payments
• Claim proper input tax credits where eligible and exclude or defer input tax credits not eligible as well as refunds or tax
  credits for exports
• Ascertain and ensure compliance with reverse charge on inward supplies where applicable
• Formulating tax efficient business models and structuring of contracts / transactions to optimize tax incidence
• Formulating tax efficient business models and structuring of contracts / transactions to optimize tax incidence
• Conducting tax impact assessment studies.

2. Compliances Under GST

• Review of tax returns and tax computations and submission to tax authorities in each state or for each registered location (including review of mismatches between vendors and/or customers and the client’s records based on reconciliation prepared by the client)
• Ensure filing of periodic and annual tax returns in each state (or for each registered presence) based on applicability
• Special procedure for valuation in case of related party transactions
• Addressing operational issues arising out of GST implementation, vendors and customers ecosystem support and advisory services as well as obtaining advance rulings
• Assisting the client in getting annual GST audit done in respect of each registered presence where the client is situated
• Review of Order to Cash and Procure to Pay and other processes from a GST perspective, including testing, validation and user acceptance of ERP related GST controls.
• Assistance in filing / submitting of Letter of Undertaking (LUT) incase of exports under GST Rules.
• Assistance in refund of excess GST paid.

B. Litigation Support Under Indirect Tax

• Representation before GST assessing and appellate authorities in the various states across India
• Support in the erstwhile Indirect Tax litigations (Service Tax , VAT) on a PAN India level