Indian taxation has a complex structure of central level, state level as well as city specific taxation. Each of these are further segregated into direct and indirect taxes and within them there are further sub-division of taxation on –capital gains, income, transfer pricing, minimum alternate tax, dividend distribution tax, tax withholding, profession tax, service tax, tax on manufacture, on importing, trading, movement of goods, etc. This super granularity creates great confusion in terms of applicable taxes, method of filing, timing and countless questions on understanding and optimizing these.
We at Greenvissage provide transaction advisory, tax structuring, domestic & international taxation advisory & compliance services. We take a long haul look on the entirety of transaction and the organisational structure to ensure there is tax optimization. Our focus is on the group as a whole rather than merely a particular transaction or a single entity. Our long term view ensures that all the future regulatory feasibilities are considered thereby safe-guarding the company from any defaults and financial exposures.
Transfer Pricing and International Tax:
When two or more associated (related) enterprises enter into a global transaction for profit, service, goods or facility provided by any of the companies, such a transaction is required to be at an arm’s length price. Governments of each country are becoming aggressive by the day to ensure that they get their fair share of taxes. Transfer Pricing regulations, agreements, documentation, certifications ensure that the companies are better equipped to handle queries of the tax departments whenever they arise.
Also, for any international transaction or remittance, tax withholding and tax compliances are determined by the domestic tax laws and a Double Tax Avoidance Agreement (DTAA) if it exists between the two countries. Our clients benefit profoundly from our expertise to handle international tax and transfer pricing compliances.
Taxation of Expatriates:
We consider your income in the home country and in India and ensure that there is no double taxation. We also make sure that there is proper tax withholding and assure social security benefits.
Taxation for Trading Companies:
There are a myriad of taxes applicable depending on the storage, distribution and end point sale of materials. We advise you the right way to route the transaction to ensure that there is minimum impact of tax. We can help you identify and guide you on the use and impact of free-trade warehousing zones. Apart from usual logistic convenience, infrastructure, storage costs and security, we also pay attention to the ancillary details like the impact of packing, labelling, manufacturing, importing on warehousing of goods.
Taxation of Manufacturing Companies:
Almost all tax laws are applicable for manufacturing companies. However, because this becomes a source of employment for various people, there are several benefits, incentives and credits that government provides and it is vital to consider these. It can influence your decision considerably. We guide you on the ways to avail various relevant benefits, incentives and credits offered by government.
Taxation of IT / ITES & Services Companies:
This industry generates a lot of employment and is also a better revenue generator for the country with next to no pollution and accommodates more in less space. Hence, IT/ITES & Services is relatively a more tax-friendly industry. It is relatively very easy to do business in this industry from a tax and regulatory perspective. We ensure that you receive every tax benefit that the government offers.
Taxation of Liaison and Branch Office:
A Liaison office is allowed to operate from India at zero tax. However, Branch office and Liaison office have significant restrictions on the nature of transaction they can do. We advise companies on what they are and ensure that ensure that these are complied with to ensure both regulatory and business feasibility.