INDIAN INCOME TAX COMPLIANCE AND TAX PLANNING ASSISTANCE FOR NON-RESIDENTS/ FOREIGN RESIDENTS

INTRODUCTION

Navigating Indian Income Tax laws as a non-resident can be complex due to the intricacies involved in cross-border taxation and the complex provisions of the Indian Income Tax Act, 1961 as applicable to non-residents. Whether you are an individual, foreign investor or international business, ensuring compliance with Indian tax regulations and optimizing your tax position is critical. Our comprehensive services for non-residents are designed to help you comply with tax requirements while minimizing tax liabilities and maximizing tax efficiency.

WHAT IS INCOME TAX COMPLIANCE AND TAX PLANNING FOR NON-RESIDENTS?

Indian Income Tax compliances and tax planning for non-residents involves a detailed review of the income earned in India by such non-resident, the application of applicable tax rates and the use of available exemptions, deductions, and reliefs specially of the DTAA’s. Our services focus on ensuring that non-residents fulfill their Indian tax obligations while employing strategies to optimize their tax positions, reduce liabilities and avoid penalties or litigations.

WHO WILL BENEFIT FROM OUR SERVICES?

Non-resident individuals, foreign companies, foreign investors with income sourced from India, including business profits, investments, capital gains or any other income can greatly benefit from our specialized services. Whether you are managing investments, earning rental income or involved in any business activities in India, our team will assist you through the process to ensure compliance and tax efficiency.

WHAT DOES THE INCOME TAX COMPLIANCE AND TAX PLANNING FOR NON-RESIDENTS ENTAIL?

• Assessment of Indian Source Income:

We analyze the income earned in India and determine which portions are subject to tax under the provisions of Indian Income Tax Act, 1961 and rules made thereunder.

• Tax Treaty Benefits

Our team helps you navigate the provisions of Double Taxation Avoidance Agreements (DTAAs) to claim benefits and avoid double taxation on the same income.

• Tax Filing and Documentation

We assist with timely and accurate filing of Indian Income Tax Returns (ITR) for non-residents, ensuring that all forms and documentation are in order.

• Withholding Tax Compliances

We ensure that the correct TDS (Tax Deducted at Source) is deducted on income payments from India and guide you on reclaiming excess TDS where applicable.

• Capital Gains Tax Planning

For non-resident investors, we offer strategies to minimize capital gains taxes on securities, property sales, or the sale of any other assets.

• Tax Liability Optimization

We analyze your income structure and suggest the most tax-efficient approach, ensuring that you are compliant with Indian tax laws while minimizing your tax burden.

BENEFITS OF INDIAN INCOME TAX COMPLIANCES AND TAX PLANNING FOR NON-RESIDENTS:

• Complete Tax Compliance

Ensure full compliance with Indian tax laws, reducing the risk of penalties and litigations.

• Maximized Tax Efficiency

Employ strategies to minimize tax liabilities through optimal use of available exemptions and deductions.

• Global Tax Planning

Avoid double taxation and manage tax liabilities effectively using tax treaties and cross-border tax planning strategies.

• Timely and Accurate Filing

Ensure the timely and accurate filing of your tax returns, preventing interest and penalties for late filings.

• Seamless Handling of TDS and Refunds

We assist with the correct application of TDS and help in reclaiming any excess tax paid.

WHY CHOOSE US?

At Taxpert Professionals, we specialize in assisting non-residents with Indian Income Tax compliance and tax planning. Our experienced team of Chartered Accountants, Tax Experts, and Legal Professionals is dedicated to providing tailored solutions for non-residents to ensure tax efficiency and compliance with Indian tax laws.

Our services include:

• Detailed analysis of Indian source income and applicable tax rates for non-residents.
• Expert guidance on availing the benefits of Double Taxation Avoidance Agreements (DTAAs).
• Assistance in filing Indian Income Tax Returns (ITR) and handling TDS issues.
• Strategic tax planning to optimize tax liabilities, especially for capital gains and business income.
• Comprehensive support for foreign investors and businesses with Indian operations.

Let us guide you through the complexities of Indian tax laws and help you optimize your tax position. If you are a non-resident facing challenges with Indian tax compliance or planning, we are here to assist you in navigating the process and ensuring the best possible tax outcome.

INCOME TAX COMPLIANCES AND ADVISORY SERVICES: ASSISTANCE FOR LOWER TAX DEDUCTION CERTIFICATE (LDC)

In recent times, many businesses face significant delays in receiving their Income Tax refunds, primarily due to excess TDS (Tax Deducted at Source) deductions by the deductor. When operating on low-margin businesses, the TDS deducted on sales may be disproportionately high, resulting in refunds that remain stuck with the government for extended periods. This not only causes cash flow disruptions but also poses potential litigation risks under the Indian Income Tax Act, 1961. Securing a Lower Tax Deduction Certificate (LDC) can help mitigate these challenges.

WHAT IS LDC?

A Lower Tax Deduction Certificate (LDC) is issued by the Income Tax Department, allowing the deductor to reduce TDS deductions at a rate prescribed in the certificate. This can significantly reduce the burden on businesses by ensuring TDS is deducted at a lower rate, improving working capital and cash flow.

WHO CAN APPLY FOR LDC?

The deductee (the recipient of the payment) applies for the LDC, submitting the required form as prescribed under the Indian Income Tax Act, 1961, and the rules outlined by the department.

DEDUCTOR AND DEDUCTEE:

Deductor: The person or entity making the payment and deducting the TDS.

Deductee: The person or entity receiving the payment and entitled to claim the LDC.

BENEFITS OF LDC:

• Reduced TDS deduction, improving working capital.
• Avoidance of long refund delays and litigation.
• Prevent inquiries or audits from the Income Tax Department.
• Minimized opportunity costs by improving cash flow.
• Enhanced tax planning efficiency for the business.

WHY CHOOSE US?

At Taxpert Professionals, we have a dedicated team of experts specializing in Indian Income Tax Compliances and Advisory Services. Our team comprises Chartered Accountants, Company Secretaries, and Lawyers who are committed to delivering customized solutions designed to meet your specific needs.

We assist clients through:

• Preparation and filing of LDC applications.
• Detailed eligibility analysis and in-depth business study for compliance.
• Strategic tax planning and business model analysis to optimize tax efficiency.

Let us help you unlock the benefits of the LDC and improve your business’s financial health.

If you're unfamiliar with the process or facing challenges in securing your LDC, don't worry—our comprehensive program is designed to guide you every step of the way.

Overview

Import reforms play a crucial role in optimizing cross-border trade and reducing the tax burden on businesses involved in import activities. With increasing scrutiny on customs valuation, anti-dumping measures and the implementation of digital and simplified procedures, navigating the complexities of import compliances can be challenging.

At Taxpert Professionals, we offer tailored import reform services that support businesses in achieving smooth and efficient import operations while ensuring full compliance with Indian tax and trade regulations.

We help businesses in streamlining their import operations, ensuring they adhere to both customs and tax regulations, reducing the risk of penalties and optimizing the cost of imports.

Key Services Taxpert is Offering:

• Assistance with Customs Compliance and Customs Duty Planning

We provide comprehensive guidance on complying with Customs Act, 1962, including the proper classification of goods under the Customs Tariff Act, 1975 and the Harmonized System Nomenclature (HSN) codes. Our team helps identify opportunities to reduce the effective duty payable, such as availing of exemptions under Section 25 and utilizing benefits of the Free Trade Agreements (FTAs) with other countries, as applicable.

• Customs Valuation and Transfer Pricing

We ensure that businesses comply with the Customs Valuation (Determination of Price of Imported Goods) Rules, 2007, under the Customs Act, 1962. We assist in the correct declaration of import prices and ensure alignment with the OECD Transfer Pricing Guidelines for cross-border related-party transactions. This minimizes the risk of discrepancies or disputes with Indian tax authorities for both income tax and customs authorities.

• Anti-Dumping Duty and Safeguard Measures

Businesses importing goods into India must comply with anti-dumping duties and safeguard measures imposed by the Directorate General of Trade Remedies (DGTR). We offer guidance on assessing whether anti-dumping duties apply to your imports and advise on obtaining exemptions or seeking remissions where applicable under the Customs Tariff Act, 1975, and Anti-Dumping and Countervailing Duty Rules.

• Trade Facilitation under the Foreign Trade Policy (FTP)

Our team helps businesses understand and apply provisions under the Foreign Trade Policy (FTP), 2023-2028. This includes advice on the Advance Authorization Scheme, Export Promotion Capital Goods (EPCG) Scheme, Duty-Free Import Authorization (DFIA), and other incentives aimed at reducing the cost of imports and promoting export activities.

• Customs Duty Exemptions and Concessions

We assist businesses in identifying and availing themselves of relevant Customs Duty Exemptions or Concessions available under the Customs Act and through government schemes. This includes exemptions for capital goods, raw materials, and parts used in manufacturing exported goods, under schemes such as Export Oriented Units (EOUs) or Special Economic Zones (SEZs).

• GST Compliance for Imports

We provide services related to the Goods and Services Tax (GST) on imported goods, advising on how to correctly classify and declare the goods for IGST (Integrated Goods and Services Tax) under Section 5 of the IGST Act, 2017. We also provide guidance on eligibility for claiming input tax credits (ITC) for duties paid on imports to optimize working capital.

• Customs Filing and Documentation

Our team ensures that all import documentation, including Bills of Entry and Importer Exporter Code (IEC) registration, is filed accurately and in accordance with the Customs Act, 1962, and DGFT Guidelines. We handle all compliance requirements to ensure no delays or penalties arise during importation.

• Tariff Classification and Duty Structuring

We assist businesses in determining the correct tariff classification of goods, which plays a crucial role in applying the right duties and taxes. With a strong understanding of the Harmonized System (HS) Code, we help clients streamline the tariff structure and ensure compliance with Customs Tariff Act provisions.

• Risk Assessment and Compliance Audits

Our team conducts regular risk assessments of import activities and provides audits of your customs filings and duty payments. This helps identify potential issues such as undervaluation or misclassification, allowing clients to mitigate risks before audits by customs authorities or tax departments occur.

• Strategic Advice on Supply Chain Optimization

We provide advice on optimizing your supply chain, factoring in the costs and implications of different trade routes, FTAs, and customs procedures to reduce import costs while remaining compliant with Indian and international regulations.

Applicable Laws and Regulations:

• Customs Act, 1962

Governs the importation of goods into India, including provisions related to customs duties, valuation, exemptions, and penalties.

• Customs Tariff Act, 1975

Specifies the customs duties applicable to various products imported into India and defines the Harmonized System (HS) Code classification.

• Goods and Services Tax (GST) Act, 2017

Governs the taxation of imports and the collection of IGST on imported goods. Importers are required to pay IGST at the time of customs clearance and are eligible for input tax credits.

• Foreign Trade Policy (FTP), 2023-2028

The policy outlines the provisions for duty exemptions, export incentives, and facilitation of cross-border trade. It includes schemes like Advance Authorization, EPCG, and DFIA that benefit businesses engaged in imports.

• Anti-Dumping and Countervailing Duty Rules

Provides the framework for imposing duties on imported goods that are sold below fair market value or subsidized by foreign governments.

• Foreign Exchange Management Act (FEMA), 1999

Regulates the import of foreign exchange and ensures that foreign transactions are compliant with Indian currency laws.

• Transfer Pricing Regulations

Ensures that pricing of intercompany transactions, including imports, between related entities is done at arm’s length, in compliance with Section 92 of the Income Tax Act, 1961 and OECD Guidelines.

• Indian Customs (Valuation) Rules, 2007

These rules provide guidelines on determining the value of imported goods for customs purposes, including transaction value and adjustments based on the terms of sale.

Why Choose Taxpert for Import Reform Services?

• Expertise in Trade Regulations

Our team possesses extensive knowledge of Indian Customs regulations, GST, and Foreign Trade Policy provisions, ensuring that your business benefits from all available opportunities while minimizing the risk of non-compliance.

• Customized Import Strategies

We provide tailored import strategies that align with your business needs, ensuring optimized tax structures, cost-saving measures, and simplified compliance procedures.

• Comprehensive Documentation and Filing Support

We ensure that all necessary import documentation is completed accurately and filed within the prescribed timelines, avoiding penalties, delays, and disputes.

• Tax Optimization and Duty Planning

Our team helps clients optimize import duties, manage customs classifications, and make use of available exemptions or special schemes to reduce overall import costs.

• Risk Mitigation

We offer a proactive approach to identifying and mitigating potential risks associated with imports, including undervaluation, misclassification, and failure to comply with changing regulations.

• Global and Local Compliance

Our deep understanding of both local Indian regulations and international trade norms ensures that your import operations comply with all regulatory frameworks, reducing the risk of audits and penalties.

• Efficient Import Operations

By streamlining the import process and providing expert guidance, we ensure that your operations remain efficient, cost-effective, and compliant with ever-changing regulations.

Partnering with us ensures that your import activities are aligned with the latest laws and regulations, minimizing risk and maximizing efficiency. With our expertise, you can focus on growing your business while we handle the complexities of import reform compliance.

Overview

In today's complex tax landscape, businesses face numerous challenges in ensuring compliance with Indian Income Tax laws. Tax-related issues, if not addressed proactively, can result in costly penalties, interest, and legal complications. A comprehensive Income Tax due diligence and health check can help identify potential risks, ensure compliance, and optimize your tax position. This is especially important for businesses looking to avoid financial disruptions and safeguard against any future tax liabilities.

WHAT IS INCOME TAX DUE DILIGENCE AND HEALTH CHECK?

Income Tax Due Diligence and Health Check is a detailed review of your business’s income tax compliances from the perspective of the Indian Income Tax Act, 1961, aimed at identifying any potential risks, discrepancies, or areas for improvement. This process ensures that your business is fully compliant with Indian Income Tax laws and provides valuable insights to optimize your tax structure, reduce liabilities, and enhance overall tax efficiency.

WHO WILL BENEFIT FROM INCOME TAX DUE DILIGENCE?

Any business, regardless of its size or industry, can benefit from an Income Tax Health Check. Whether you are preparing for an audit, planning for growth, looking for potential investors or reviewing your existing tax strategies, due diligence helps ensure that your business is in optimal tax health.

WHAT DOES THE INCOME TAX DUE DILIGENCE ENTAIL?

• Review of Tax Compliance

Assess your compliance with Indian Income Tax Laws, including timely filing of returns, Withholding Tax obligations, and tax payments.

• Identification of Potential Risks

Pinpoint any areas where the business may be exposed to penalties, interest, or potential litigation.

• Tax Structure Optimization

Evaluate your business structure for tax efficiency, ensuring you are leveraging available exemptions, deductions, and incentives.

• Evaluation of Transfer Pricing Policies

Review Transfer Pricing compliances for businesses with international transactions, ensuring alignment with both local and international regulations.

• Assessment of Pending Liabilities

Analyze pending tax assessments, refunds, and litigations to address any outstanding issues proactively.

BENEFITS OF INCOME TAX DUE DILIGENCE AND HEALTH CHECK:

• Comprehensive Tax Compliance

Ensure full compliance with all applicable Indian Income Tax regulations.

• Risk Mitigation

Identify and address any potential tax risks before they lead to hefty penalties or legal disputes and litigations.

• Optimized Tax Position

Implement tax-efficient strategies, ensuring maximum utilization of exemptions, deductions, and incentives.

• Improved Cash Flow

By resolving pending issues and reducing unnecessary tax liabilities, your business can enjoy improved financial health.

• Peace of Mind

Minimize the risk of audits by the Indian Revenue Authorities, penalties, and interest by ensuring your business is fully compliant.

WHY CHOOSE US?

At Taxpert Professionals, we specialize in conducting comprehensive Income Tax Due Diligence and Health Checks tailored to your business's specific needs. Our team of Chartered Accountants, Company Secretaries, and Tax Experts are committed to ensuring that your business remains fully compliant, tax-efficient and financially sound.

• Detailed review of your business’s tax compliance and risk areas.
• Expert advice on tax planning and structuring to optimize your tax position.
• Evaluation of pending tax liabilities, disputes, and litigations.
• Proactive solutions for addressing compliance gaps and reducing exposure to penalties.

Let us help you ensure your business is in optimal tax health. If you are unsure about your tax compliance status or need assistance with a comprehensive health check, we are here to guide you through the process and provide actionable solutions for long-term tax efficiency.