Managing indirect tax compliance by business is very complex in India due to multiple laws, sub ordinate legislations (rules, notifications, circulars) driven compliance and frequent amendments therein. The cost of non compliance is very significant, in few cases could endanger survival of enterprise. The essence is to ensure zero error compliance.

We provide compliance support to clients of all size. Our tax compliance and reporting team provides high-quality, flexible and cost-effective solutions to tax compliance. Our approach in compliance is tailored to clients’ needs aimed at ensuring error free compliance. Involvement of senior members of the firm means we can use our experience and skills to identify opportunities to improve tax processes and deliver tax savings.

Our services include:

Registration with Department

Any person intending to undertake a commercial activity requires examining need to take registration under the statute. The decision needs to be taken in the light of tax implication on the proposed business after evaluating all exemptions and benefits. Also, there can be multiple categories of registration within single law. The situation is more complicated when the activity undertaken has tax implications under multiple laws. This necessitates assistance of experts to suggest the need and form of taking registration.

We can support you in resolving various associated issues and obtaining registration. We can help businesses facing the need to register under various indirect tax laws by:

  • Initial technical reviews to examine if registration is necessary
  • Identification of registration category i.e. manufacturer, dealer, service provider, importer, input service distributor and so on.
  • Taking you through the documentary requirements and managing the submission of these on your behalf
  • Preparation of all forms and submissions
  • Advice and training on the consequences of registration

Benefit of Tax Credit

Indirect Taxes in India are running primarily on value added concept where tax paid at earlier stage is adjusted against liability at next stage and net tax be paid to government. A manufacturer/ service provider can claim credit of tax paid on input/input service and capital goods. Similarly, a dealer may take credit of VAT paid on purchase of goods. But this basic concept has been complicated by imposing many restrictions in the cenvat credit provisions. Highest number of litigations under indirect tax is on credit related issues. This requires in-depth examination of credits to avoid possible action by department and at the same time to ensure that no eligible credits are foregone. Our professional experts can assist you in optimising the credits by:

  • Evaluating admissibility of credits (cenvat credit and input tax credit)
  • Identifying missed out credits
  • Making apportionment of credits between taxable and exempted activities
  • Evaluate alternate transaction structuring to minimise credit disallowance
  • Support in documentation and record maintenance to ensure optimum input tax credit availment

Payment of Taxes

Tax needs to be paid to government at the end of each tax period. This requires identification of tax liability on net basis after adjusting eligible credits. There could be other multiple adjustments on account of non monetary consideration, point of taxation, related party implications, reverse charge liability etc. Non/short payment of taxes invokes tough penalties and interest charges. Also, now the taxes are required to be paid online under most of the laws. We can support you in calculating tax liability to ensure there is no under/excess payment of taxes.

Filing of Returns

Once registered, entities are required to submit periodic returns under all registered law. Each of the law has highly detailed requirements which are also subject to frequently changes, potentially making them difficult for businesses to follow. Managing these can be technically complex, time consuming and can involve unpredictable costs for a business. H&A offers return filing services under service tax, excise and VAT (in few states) laws. Return is principal mode of interaction between assessee and department and keeping this in mind, we ensure that return filed meet all disclosure requirement. This is effective way of reducing litigation. Following services are provided in this category:

  • Identifying output tax liability
  • Calculating eligible input credit
  • Computation of net liability
  • Preparing return disclosing all relevant information
  • Filing return online/offline
  • Review of return prepared by client
  • Support in designing efficient accounting and support system so that information necessary for filing of return are available instantaneously.

Assistance in Internal Control and System Implementation

Indirect Tax pervades in almost all financial transaction of business. This necessitates having proper control system to manage tax function at transaction levels. Also, the businesses have now become system driven where human interference is reduced to very minimal. The complex business structure coupled with system automation requires flawless tax system inbuilt in all processes. We, at H&A, have system experts who can assist in establishing internal control and implementation of system addressing all compliance requirements under indirect tax statutes.

Designing of Standard Operating Procedures

Business should not depend on individuals for key business process especially indirect taxation which has impact on all business transactions. This necessitates developing robust standard operating procedures under indirect tax for smooth functioning of business. The need of SOP is felt in medium and large size business. Our experience in the diversified industries handling all indirect tax laws during almost 3 decades has put us in a niche position to serve in this area. We have successfully designed operating procedures for small to giant size clients be it manufacturer, trader, service provider, dealer or importer. It has been seen that wherever such procedures have been followed, it has resulted in significant decline in department actions.

Claiming Refund & Rebate

It is stated policy of the government that only goods and services should be exported out of India not the tax associated with them. This is achieved either by allowing purchase of inputs net of taxes or by granting refund of taxes embedded in the publication of final product/services. There are multiple modes of claiming refund. The decision to choose particular option depends on multiple factors. We, at H&A, have in-depth knowledge of interconnections among various indirect tax laws, understand the intricacies in different refund options, undertake cost-benefit analysis and suggest best workable options in your peculiar case. It includes the following services:

  • Evaluating alternative modes of refund/rebates and suggesting best option
  • Designing system for generation of necessary documentation for preparing refund claim
  • Assistance in retrieval of supporting documents
  • Preparing refund claim as per statutory requirement
  • Filing refund claim with department and making follow up
  • Making representation in case refund claim rejected

Other Compliance Support

In addition to above, we may support in following compliance support:

  • Amendment in registration certificate
  • Surrender of registration certificate
  • Assistance in issuance of statutory forms