Indirect Taxation Service

I. Goods and Service Tax Advisory and Compliance

The GST Law in India has been implemented from July 01, 2017. With the Introduction of GST, way of doing business has changed throwing ample opportunities for structured businesses to optimize tax and costs. It has thrown up challenges as well for the businesses, as the law is comparatively new with regular amendments presently at a rapid pace.

The greatest value we provide to our client is transfer of indirect tax knowledge and expertise gained through advising thousands of clients, during the last 3 decades in indirect taxation, ranging from small proprietors to large MNCs on a variety of indirect tax issues. This experience is further put on ice due to the large volume of compliance which our dedicated team of professionals is catering on a regular basis to our high-profile clients.

We at FinScribal have a dedicated team of professionals (Chartered Accountants and GST Practitioners) who focus only upon the Indirect Tax aspects which includes advisory services on business transactions, providing legal opinions, compliances, audits and due-diligence related work.

a. Structuring Advisory:

We are known for suggesting workable solutions and ability to solve complex issues and deliver strategy and implementation from a business and technical view within the framework of law. The coverage ranges from the present GST Law, Customs Law, Foreign Trade Policy and the erstwhile Central Excise, VAT and Service Tax Laws.

We assist in improving the performance and effectiveness of clients’ business of examining all the Indirect tax aspects of core management and business process for further growth of the business.

b. Legal Assistance and Opinions:

We believe in providing independent and competent opinion to our clients. We strive to provide first hand understanding to our clients of legal implications associated with any transactions they intend to entered. Our team possess experience in providing legal assistance with regards to any given transaction. We provide following assistance to our clients:

• Vetting of contracts and other supporting documents relating to the matter for opinion.
• Providing written opinion on any given transactions.
• Opinions on routine as well as transaction specific issues.

c. Due Diligence including vendor diligence:

Strategic business decisions often require due diligence of parties involved, in order to assess the financial viability of the decision. In business deals, tax due diligence of seller is one of the crucial and important check for making any deal feasible. Such due diligence is either voluntary by seller or is based on specific requirement of the buyer to review the tax exposure. This becomes more critical where entity is exposed to multiple indirect tax laws.

Tax Professionals at FinScribal possess in-depth knowledge and experience for due diligence review. The team identifies areas of non-compliance, potential threats thereof and suggest remedial measures to make the deal work. Alternative structuring strategies to optimize tax incidence are also considered and suggested will conducting the due diligence. Our GST due diligence services include the following:

• Advise over viability of a transaction/deal after conducting deep study of the transaction/ structure/ vendor concerned.
• Comprehensive Due Diligence Report with comment on important areas.
• Suggestion on way forward and available solutions.

d. GST Compliances:

Every GST registered entity is required to submit GST returns within time limit prescribed by the law. It is imperative to understand that compliance is very important in GST due to automation of all returns including payment process. Managing such multiple tasks could be technically complex, time consuming and can involve unpredictable costs for a business.

Tax needs to be paid to government at the end of each tax period which requires identification of appropriate calculation of tax liability after adjusting eligible credits. There could be other multiple adjustments also on account of non-monetary consideration, time of supply, related party implications, reverse charge liability etc.

Our firm offers support in GST return filing services which are as follows:

• Review of procedural compliances including GST registrations obtained, payment of taxes, filing of returns, disclosure of ITC & outward supplies in returns, movement of goods for job work, carry forward of credits etc.
• Providing assistance to calculate tax liability for each tax period cycle after considering all eligible input eligible credits and liability as per reverse charge mechanism.
• Preparing and submitting GST returns and providing guidance with regards to payment of taxes.
• Review GST returns prepared by clients to ensure appropriate disclosure of sales turnover and claiming of eligible ITC and matching the same with regular books of accounts to avoid any discrepancies.
• Vouching of sample sale and purchase invoices to ascertain correctness of billing and accounting system.
• Review interest computation due to delayed GST payment, non-payment to vendors etc.
• Review of fulfillment of conditions for exemption / concessional rate of taxes.
• Support in designing efficient accounting and support system so that information necessary for filing of return are available instantaneously.
• Assistance in making payment after adjusting eligible credits in the most suitable manner which optimizes cash payment of taxes.
• Review of GST outward supplies, tax rates applied, concessions, exemptions claimed, fulfillment of related conditions, export benefits claimed etc.
• Review of GST input tax credits claimed to assess eligibility, ineligibility, completeness, documentation for credits etc.

e. GST Audit:

As per the provision of CGST Act 2017, a registered taxable person whose turnover is more than Rs. 2 crores in a year is required to get his books of account audited by a chartered accountant or cost accountant. The due date for submission of audited financial accounts including reconciliation statement for a financial year would be 31st December of subsequent year. We conduct audit of books of accounts under GST which would cover following aspects:

• Review of outward supplies declared in return to ensure that it includes all outward supplies made during the financial year
• Review of inward supplies declared in return to ensure that it includes all inward supplies received during the year
• Review of all deductions claimed including sales returns, abatements, exemptions
• Review of classification, rate of goods which should be according to provisions of GST further we also review the classification HSN wise
• Assessment of registrations obtained and whether any amendments is required to comply with the provisions of GST Law
• Review of input tax credits claimed on inputs, input services and capital goods, as also claim of credit in accordance with all eligibility criteria
• Review of reconciliation statements are to be filed along with certified audit report
• Support in preparation of the reconciliation statement and filing of Annual return
• Conducting audit in accordance with all other requirements as per GST Act

II. GST Representation Services and Litigation Support

With the rapid increase in dispute, litigation or investigation. it is necessary to get credible and reliable advice to manage risk and create value. Our team of experienced professionals combines the highest standards of technical skills and knowledge to gather analyses and evaluate evidence. We review pending litigations issue wise and thereafter provide guidance over the possible outcome basis the judicial precedent and legal provision in respect of each litigation, along with the risks involved. We assist clients in drafting responses, while making submissions and presentations on their behalf. Furthermore, we help them in maintaining a database, wherein litigations are segregated based on issue, forum, etc.

a. Representation before various forums for assessments:

Matters which escalate beyond notice stage needs filing of appeal before quasi-judicial authorities or judicial authorities. These could be commissioner (appeals), Tribunal, Revisionary Authority, or similar other authorities. Our legal team understands the matter; prepares and files appeals wherever required considering the legal, factual aspects and appears before the designated authorities.

We provide following services to our clients to enable them to have effective representation:

• Submission of details/ documents before respective authorities
• Representation before various authorities
• Follow up with respective authority for speedy conclusion of proceedings
• Submission of Advance Ruling applications with respective authorities after screening the matter for which advance ruling is sought

b. Representations and follow up for speedy disposal of Refund Claims:

The Indirect Tax team at BSC, have in-depth knowledge of interconnections among various indirect tax laws, understand the intricacies in different refund options, undertake the cost-benefit analysis and suggest our clients with the best workable options.

We assist our clients in the following way:

• Assisting client about refund to be claimed in time
• Filing refund applications, compilation of details/documents for submission to the respective authority.
• Assisting client on difficulties/issues related to refund claim.
• Follow up with the respective authority for rapid processing of refund

c. Litigations Support:

We are strong followers and propagators of ethics in our professional practice. We provide independent and unbiased guidance to our client on legal matters. FinScribal has a wide experience in providing most effective and beneficial litigative solutions by:

• Litigation review exercise to formulate strategy for swift resolution of matters
• Reviewing existing litigation and uncertain tax positions; comment on the grounds taken for defense in existing litigations and probability of success and mitigation steps for future litigation.
• Identifying potential risks regarding various tax positions and comment from long-term view.
• Proactively explore alternative tax dispute resolution avenues for complex tax disputes
• Reviewing litigations for disclosure as contingent liability in financial statements
• Drafting replies to notices, submissions to authorities, appeals to authorities and Tribunal, applications before advance ruling authorities
• Presenting personal appearances and arguments before adjudicating authorities, appellate authorities and Tribunal
• Representing arguments before advance ruling authorities
• Preparing briefs for legal counsel, briefing legal counsel and assisting legal counsels for appeals, writ petition and special leave petition before Apex Court and High Court

III. Service Tax Representation Service and Litigations

FinScribal is known for its practice in the Service Tax Law. Though post introduction of the Goods and Services (GST) Law, the Service Tax Law is abolished, however cases related to the service tax regime are still pending at the various forums before the authorities, and also there are instances where the defaults under the erstwhile Service Tax era can still emerge in the near future.

In order to facilitate our clients with any litigations that may emerge pertaining to the erstwhile Service Tax era, we at FinScribal with our decades of knowledge and experience in this particular field are able to serve our clients for the earlier Indirect Tax regime also, along with the present Indirect Tax i.e. GST regime, under a one single roof.

a. Representation & Litigation assistance:

Most of the legal disputes commence with the issuance of a show cause notice and we believe that if the same is addressed properly at this stage, litigation could be avoided/mitigated to a large extent. We suggest fair opinion to our client as to whether the case is worth contesting or admit the facts as stated in the show cause to avoid frivolous litigation. We have team of experienced legal team having in-depth experience in drafting reply to various notices issued under the GST law. We also attend personal hearing on behalf of client. Further we assist in preparation of various submission as required at various stages of the litigation. We also assist clients in representation before the authority also further we help in handling matters regarding the departmental audit.

b. Follow up for Refund claims:

We believe in offering qualitative value-added services to our clientele. Our refund application process has its foundation built on comprehensive process checklists, document verification and categorization, reconciliation with records and periodical follow ups and pursuing the refund application with the authorities. With such comprehensive process in place, the process of refund becomes quite easy and the clients gets the best possible outcomes.