Domestic and International Taxation

Taxation

A tax is a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state to fund various public expenditures. Efficient and effective tax management is the key success to any business, since it helps to reduce costs and stay ahead in today’s competitive era.



1. Domestic Income Tax

In a lighter note, if we define Income Tax, it is like the tax which no one is willing to pay.

Income Tax is a type of Direct Tax. Direct Tax would mean the tax, the cost of which is to be borne by the entity/person himself. It cannot be passed on to the other person.

While in the indirect tax like GST, the burden of the tax will be passed on to the end consumer and therefore, intermediary businessman has nothing to bear it.

We provide our expertize services in the matters of Income Tax related to Income Tax Compliance, TDS Compliance, and Tax Planning within the corners of the law.

Income Tax compliance and provisions are further divided into the Domestic Transactions (i.e. normal Income Tax Provisions in the layman language) and International Transactions.

We provide following service with respect Domestic Income Tax matters:

  • Income Tax Planning and analysis
  • Agreements, Drafts, Bonds review and advice
  • Income Tax Return filing
  • Appearing before the Income Tax Officer
  • Appearing before the Commissioner of Income Tax (Appeals)
  • Appearing before the Tribunal
  • TDS advisory and working
  • TDS return filing
  • Other Domestic tax issues

2. International Income Tax

If you think that Income Tax Provisions are too harsh, then just refer to the International Taxation / Transfer Pricing provisions of the Income Tax and then you will be bit relaxed.

When a person in India enters into an International Transaction(s) with its related party (The term ‘Related Party’ is defined in the Income Tax Act, 1961), then the Transfer Pricing Provisions are applicable to him.

In very simple term, the brief of the Transfer Pricing provisions is ‘to carry international transaction with related party at arm’s length price’. It means the transaction should be arm’s length transaction.

The term ‘Arm’s length transaction’ would mean a transaction in which the buyers and sellers of a product act independently and have no relationship to each other.

Example: If an Information Technology company located at United States opens up a wholly owned subsidiary company in India. The Indian company provides services to its holding company located in United States. It’s called an international transaction. And this transaction should be arm’s length transaction.

From the above description, it looks like it is very simple. But truly speaking, to derive at arm’s length price is the most complex issue.

We are already providing extensive professional advises with respect to above services to our existing clients.

The scope of the services includes:
  • Determining the International Transaction
  • Computing the Arm’s Length Price
  • Transfer Pricing Audit
  • Income Tax Return
  • Other professional services related to it.
Our comprehensive coverage of Income Tax services has resulted into the various tag marks of our firm like Income Tax Planning, TDS Consultant, Income Tax Return Filing Consultant, GST Consultant, Income Tax Consultant in Ahmedabad, Gujarat etc. For more info, visit www.pchhajed.com 

Comments

Post a Comment

Popular posts from this blog

Top CA Firm in Ahmedabad

Image
P Chhajed & Co LLP is a Best CA in Ahmedabad and Top CA Firm Ahmedabad. We provide auditing and assurance services in a way that leads to lower the cost of the company including litigation cost. AUDIT AND ASSURANCE In today’s dynamic environment, the scope of audit has been extended from the traditional statutory audit or the tax audit. For the traditional audits, we believe it as a ‘Cost Saving Center’ rather than the ‘Cost Center’. We provide auditing and assurance services in a way that leads to lower the cost of the company including litigation cost. WE PROVIDE FOLLOWING SERVICES WITH RESPECT TO AUDITING AND ASSURANCE Statutory Audit as per Companies Act, 2013 Statutory Audit as per Limited Liability Partnership Act, 2008 i.e. Statutory Audit as per LLP Act, 2008 Tax Audit as per Income Tax Act, 1961 GST Audit as per applicable GST Law Transfer Pricing Audit as per Section 92E of the Income Tax Act, 1961 (i.e. TP Audit) Audit of Banks Audit of Co-Operative...
Read more

Income Tax Consultant in Ahmedabad

Image
A tax is a financial charge or other levy imposed upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state to fund various public expenditures. Efficient and effective tax management is the key success to any business since it helps to reduce costs and stay ahead in today's competitive era. India has one of the most complicated taxation structures. The tax is levied at various stages viz. by local authority, State Govt. and Central Govt. Even there are multiple taxes levied by the single authority. So it would be lot difficult for the businessman to manage this entire complex structure, but the key is to be prepared in advance. Most business decisions need proper understanding of various scenarios and their implications for proper decision making and implementation on policy and executive level strategies. We immaculately combine the research and depth of large business organizations and personal attention and relationship approa...
Read more

GST Consultant in Ahmedabad

Image
Taxation – Goods and Services Tax ( GST ) Indirect tax is a type of tax where the tax is borne by the end consumer. Therefore, if a business entity fails to anticipate the applicability of an indirect tax and does not recover the same from the consumer it becomes a cost to the entity and is a direct hit to the cost analysis. Consequently, indirect taxes have a direct bearing on the costs, pricing policy, cash flow, and profitability and ultimately the competitiveness of an organization. Hence it becomes critical to evaluate the impact of various indirect taxes on any given transaction. Generally, indirect taxes unfold into Central Excise, Service Tax, VAT and CST along with GST (Goods and Services Tax). With the historic introduction of GST w.e.f 1st Day of July 2017, the role of other indirect taxes like Central Excise, VAT etc. has been reduced to only specified products. Goods and Services Tax (GST) is applicable on ‘supply’ of goods and services or both, in India in...
Read more