Out-Sourcing

Compliance with a large number of Taxes and Regulations in India is a very complex task, due to the frequent changes made by the Government.

ALTA META has a specialised team of Tax Experts, who advice on various aspects of Taxation and Regulatory compliance to ensure timely compliance. In addition, our clients also have the benefit of enjoying cost savings by reducing management time, resources and litigation expenditure.

Our Expert team updates on the changing scenarios in the business, Tax and Regulatory environment. They also explain to the clients about amendments and changes through Newsletters and Alerts.

The Indirect Tax regime in India is very dynamic and our team of Experts is competent to support you in implementing changing Laws and ensuring timely compliance. This would help you to minimise tax costs and risks, by taking advantage of the available exemptions, abatements, credits and set-offs.

Government is currently working on the implementation of a single Goods and Services Tax (GST) in India. This would be a very positive development and is expected to have substantial positive impact on businesses across Industry sectors.

We will work with your company to understand the new GST implementation and try to find solutions to the various aspects and impacts of it.

ALTA META's Compliance services include

• Preparation and settlement of all types of taxes: IT, Withholding Tax, Advance Tax, VAT, Excise Duty, Service Tax etc.
• All Taxation & Regulatory Compliances.
• Representation, Advocacy and Assistance before the Tax Authorities.
• Expatriates Tax & Regulatory Compliances.
• Representation of Non-Residents and the management of Regulatory obligations.
• Other Regulatory Compliance
• Legal Support

Regulatory Advisory

Experts at ALTA META, have a practical understanding of India’s complex Tax & Regulatory compliance requirements which are amended frequently by the Government.

We offer advisory services, including:

• Company Law
• Foreign Direct Investment Regulations
• Direct Taxation (Advance Tax, Withholding Tax, MAT, DDT)
• Indirect Tax (Service Tax, Excise Duty, Sales Tax, VAT)
• Foreign Exchange Management Regulations
• Industry-specific Regulations
• Foreign Trade Policy Initiatives
• Factories, Shops Act etc.
• Labour and Employment Regulations

Direct Taxes

The direct tax is a tax that is paid directly by an individual or organization to the imposing entity. A taxpayer pays a direct tax to the government for various purposes, including income tax, personal property tax, and tax on assets.

Our services include:

• Comprehensive Management of Direct Taxes.
• Representation, Advocacy and Assistance before the Tax Authorities.
• Management of Direct Taxes for Expatriates.
• Representation of Non-Residents and the management of the relevant Obligations.
• Other Regulatory Compliances.

Advance Tax

As the name suggests, advance tax refers to paying a part of your taxes before the end of the financial year. Also called 'pay-as-you-earn' scheme, advance tax is the income tax payable if your tax liability is more than a certain amount in a financial year. It should be paid in the year in which the income is received.

Advance tax receipts help the government to get a constant flow of income throughout the year so that expenses can be incurred rather than receiving all tax payments at the end of the year.

Companies need to pay it on the 15th of June, September, December and March.

Withholding Tax

Withholding Tax, known as Tax deducted at source (TDS) in India, aims to collect revenue at the very source of the income. The Govt. requires the payer to withhold Tax at source.

Withholding Tax applicable to a Non-Resident Tax-Payer on "Royalty" and "Fees for Technical Services (FTS)" earned from India has been increased from 10% to 25%.

Minimum Alternate Tax (MAT)

MAT is a way of making companies pay at least minimum amount of tax. Minimum alternate tax (MAT) is levied at 18.5%, (plus applicable surcharge and cess), on the adjusted book profits of companies whose tax payable under normal income-tax provisions is less than 18.5% of their adjusted book profits.

It is applicable to all companies except those engaged in infrastructure and power sectors. Income arising from free trade zones, charitable activities, investments by venture capital companies are also excluded from the purview of MAT. However, foreign companies with income sources in India are liable under MAT.

Credit for MAT is allowed against the tax liability which may arise in the subsequent 10 years under the normal provisions of the Income Tax Act.

Dividend Distribution Tax (DDT)

Dividend Distribution Tax is levied on all companies on declaration, distribution or payment of Dividends, whichever is earlier. The effective rate of DDT is 16.995%

Indirect Taxes

The Indirect Taxes system in India is quite complex in the sense there are several Taxes that still exist, even after various refinements of the Indirect Taxation system. The companies have to manage these compliances to prevent leakages.

Our services include:

• Comprehensive management of all indirect taxes.
• Preparation and settlement Excise VAT, Excise Duty, Service Tax, Customs Duty
• Representation, Advocacy and Assistance before the Tax Authorities.
• Other Regulatory Compliances.

Some of the Indirect Taxes are:

Customs Duty

Customs duty is levied by the central government on goods imported into and exported from India, though the list of goods on which export duty is levied, is limited. The rate of customs duty applicable to a product to be imported or exported depends on its classification under the Customs Tariff Act, 1975 (CTA). Total Customs Duty is charged under the heads of Basic Customs Duty (BCD), CVD (Countervailing Duty), Education Cess (EC), Additional Duty of Customs (ADC).

Effective Rate is charged at 28.85%.

CENVAT (Excise Duty)

Central value added tax (CENVAT), commonly referred to as EXCISE DUTY, is a tax levied by the Central government on the manufacture or production of movable and marketable goods in India. The rate of Excise Duty charged on the goods depends on the classification of the goods under the excise tariff.

The standard rate of excise duty for non-petroleum products is 12%. In addition, Education Cess (EC) at 2% and Secondary & Higher Education Cess (SHEC) at 1% are applicable on aggregate excise duties. Thus, the effective rate of excise duty is 12.36%.

Service Tax

Service tax was first introduced in India in 1994, since then, the list of services has been expanded year on year. In 2012, a new concept of service taxation based on a 'Negative List' of services was introduced. In this new system of taxation, all services are taxable EXCEPT for the services mentioned in the 'Negative List'.

Generally, it is the service provider who is liable to pay the service tax. However, for some specified services, such as transport of goods by road, sponsorship, legal services, import of services, etc., the obligation to pay service tax rests with the service receiver instead. In certain cases, this obligation has been divided between the receiver and the provider in a specified proportion.

The existing rate of service tax is 12%. In addition, Education Cess (EC) of 2% and Secondary & Higher Education Cess (SHEC) of 1% of the service tax are levied on taxable services. Thus, the effective rate of service tax is 12.36%.

Sales Tax

The sale of movable goods in India is chargeable to tax at the federal or state level. The Indian regulatory framework has granted power to state legislatures to levy tax on goods sold within that state. On the other hand, all goods sold in the course of inter-state trade are subject to the federal sales tax, i.e. Central Sales Tax (CST).

The Rate is 2% or VAT rate applicable on the goods in the state where the movement of goods commences.

Value Added Tax

State-level sales tax was replaced by VAT with effect from 1 April, 2005 in most Indian states. At present, all Indian states have transitioned to the VAT regime.

Under this regime, the VAT paid on goods purchased within the state is eligible for VAT credit. The input VAT credit can be utilised against the VAT or CST payable on the sale of goods. This ensures that the cascading effect of taxes is avoided and that only the value addition is taxed.

Rate varies from state to state, generally ranges from 4% - 15%.

Octroi Duty & Entry Tax

Octroi is a municipal tax levied at the time of the entry of specified goods into the limits of the municipal corporation. Thus, octroi can be levied if there is movement of goods from one city to another in the same state, in the event that the cities fall under the jurisdiction of two different municipal corporations.

Entry Tax is on entry of specified goods into the state from outside the state for use, consumption or sale therein. Entry tax continues to exist under the VAT regime, though in certain states it has been made VAT-able and can be set off against the output VAT liability in the state. Entry tax is levied on the Purchase value.

Rate varies from state to state.

Goods and Services tax (GST)

Currently the central government is taking steps to implement the unified Goods & Services Tax (GST) all over India. It will be a historic reform in India as it will subsume Counter Vailing Duty (CVD), excise duties, service tax, CST, state VAT and some other state taxes.

At present, a dual-rate GST model is envisaged, whereby the tax rate will be converged to one standardised rate of 16% on goods and services within three years of implementation.

Under the proposed dual-rate GST model, a central GST and a state GST will be levied on the taxable value of a transaction of supply of goods and services. Both the centre and the state will legislate, levy and administer the central GST and the state GST, respectively.

Once fully implemented, GST will create a single, unified Indian market and will diminish the multiple layers of indirect taxation that prevail in India at present. GST is also seen as a reform in administration of indirect taxation and will definitely be favourable for trade.

Stamp duty

Stamp duty is levied at various rates on documents such as bills of exchange, promissory notes, insurance policies, contracts effecting transfer of shares, debentures and conveyances for transfer of immovable property.

Research & Development Cess

A research and development cess is levied on all payments made for the ´import of technology under foreign collaboration´. The term ‘technology’ includes the import of designs, drawings, publications and services of technical personnel. Rate is charged at 5%.

Transfer Pricing

It is very important for our foreign clients to manage the Issues related to Transfer pricing.

Keeping this in mind, we help our clients to:

• Review existing transfer pricing policy.
• Advising in formulating and assisting in implementing an optimal TP policy.
• Maintenance of proper Documentation as per Indian and ´country-specific´ requirements.
• Certifications, Issuing Form 3CEB (CA/CPA Certificate) as required under Indian regulations encompassing international transactions as well as domestic transactions covered under transfer pricing.