Despite the various reforms carried out in the past few years, the prevailing Indirect Tax regime in India is still in a state of evolution. The system is quite complex, with multi-layered levies both at the Central and State level.
In India, indirect taxes encompass every area of an Indian business. Generally, any transaction, whether in goods or services, attracts various indirect taxes. Indirect taxes are usually borne by the final consumer. Therefore, if a business entity fails to anticipate the applicability of an indirect tax and does not recover the same from its customer it becomes a cost to the entity and is a direct hit on the bottom line. Consequently, indirect taxes have a direct bearing on the costs, pricing policy, cash flows 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.
Presently in India, Goods & Services attract Goods and Services tax, imports attract basic customs duty with GST and the application of the new GST Act for every entity specific needs detail evaluation and Analysis.
The existing regime requires businesses to undertake careful upfront analysis of the tax costs involved in a transaction¸ ensure adequate backup documentation to support their tax positions and constantly explore opportunities for tax optimization.
G V V RAJ & ASSOCIATES Team of indirect taxes, with their wide-ranging experience and in-depth knowledge help clients in all of these aspects. The Firm provides advisory services in respect of the Goods and Services Tax and Foreign Trade Policy-related matters. The firm also assists its clients in making representations before the revenue authorities for obtaining tax concessions, reliefs and seeking clarifications at the respective Departments.