DIRECT Taxation

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GNP MARKS & CO.: Simplify your tax filing and maximize savings. Expert tax assistance & savings strategies for individuals. Streamline your taxes and keep more of your hard-earned money.

We provide detailed advice relating to various corporate tax issues to enable the maximization of benefits under the provisions of the domestic tax law and also ensuring that tax litigation risks are minimized. We also provide advice on various issues relating to DTAA such as tax residence, creation of permanent establishment, tax credits etc. Our endeavor is to approach the issues on corporate tax to reduce risk and resolve conflicting issues at the first level of audit of the tax returns by the Tax officers.

During the course of business activities, the payments are made to outside parties on a regular basis, like payments made towards contractual work, rent, fee for professional or technical services and commission, etc. which attract the provisions relating to deduction of tax at source as contained in the Income Tax Act, 1961. In this connection, we provide our assistance in the following areas:

• Review of financial accounts and scrutinizing the bills and supports to examine the applicability of withholding tax

• Preparation of tax payment challan for deposit of taxes withheld.

• Preparation of withholding tax certificate (Form 16A) for the taxes withheld on various payments like contractor, rent, professional or technical services and commission;

• Preparation of Quarterly and Annual returns of taxes withheld and submission of the same with the Tax Authorities;

• Representation in connection with verification proceedings of withholding tax returns filed with the Income tax authorities.

 Provisions of Income Tax Act, 1961 (the Act) require all companies/ assesses to estimate their income in advance and deposit the annual tax liability on advance basis in four quarterly installments. We estimate the annual tax liability on quarterly basis based on estimated profit and loss account, both under the normal provisions of the Income Tax Act and Minimum Alternate Tax and thereby determining the advance tax liability.

The tax returns are finalized & submitted before the due date after verifying the followings.

• Review of various expenses and determining the deductibility of the same under the Act;

• Review of financial statements for the sole purpose of preparing the corporate tax return; and

• Preparation of the Corporate Tax Return in the prescribed form and submission of the same with tax authorities within the due date.

   We provide complete solution to our clients relating to Transfer Pricing issues. The Transfer Pricing Regulations (TP Regulations) requires that all “international transactions” between “associated enterprises” should be undertaken at an “arm’s length price” and requires that Transfer Pricing certification be obtained from accountants relating to international transactions within the Multi-National Corporations (MNCs). In this regard, we assist the client’s in the following manner:-

• Evaluating the existing transfer pricing policy and the basis/ methodologies for determining prices of international transactions with associated enterprises.

• Evaluating/ understanding the Import and Exports from/to associated enterprises, Payment of royalty/fees for technical services to associated parties & Services from associated enterprises.

• Advising adjustments that may be required to ensure that the transfer pricing policy is in tune with Indian TP Regulations.

• Ensuring that all relevant documents and relevant information are maintained by the Company to enable it to support its transfer pricing policy, if necessary, before the statutory authorities.

We also represent the clients before the tax officers with respect to their Transfer Pricing policies.