TAX COMPLIANCE AND LITIGATION

Taxation is a financial charge levied by tax authorities normally Government of that country. The tax is required to fund the government spending and various public expenditures.

Tax structure in India is divided into Direct and Indirect taxes. When the tax burden is on Individual who is paying the tax than it is called Direct tax. Whereas, In case of Indirect tax, person paying tax recover it from another person. End consumer of goods and service bear the indirect tax.

In India, Taxes are levied by Central and State government. Some minor taxes are levied by local authorities such as Gram Panchayat, Municipality etc.

Over the last few years, Government of India has taken initiatives in tax reforms and as a result, India rank in ease of doing business jumped 79 positions from 142nd in 2014 to 63rd in 2019.

 

Major central Taxes are Income tax, CGST, IGST and Custom duty whereas state taxes are SGST, stamp duty etc. 

Key tax incentives in India

  1. Export promotion: Exemption of profit of units in SEZ, RoDTEP scheme, Duty drawback scheme, Duty-free import against advance authorisation.
  2. Research & Development: Weighted deduction of expenditure incurred on specific R &D expenditure.
  3. Production link Incentives: PLI scheme for a refund amount as a percentage of incremental turnover on committed new investment.
  4. Startup India Scheme: Tax holiday for a startup for any consecutive 3 years (from the initial 5 years).

Tax Compliance

Each taxpayer must undertake certain tax compliance such as filing of returns, submission of Report of audit, transfer pricing certificate, Withholding tax on behalf of government, timely payment of taxes.

Returns filed by the assess are subject to verification of the tax authorities. Tax authorities may select your return for the further scrutiny. This procedure is known as assessment by tax authorities.

Litigations

For the taxpayers, whose returns are not selected, self-assessment is done. Any taxpayer aggrieved by the outcome of the assessment, can challenge the same before appellate authorities. Disputes in tax assessment mainly rises due to interpretation of law, lack of syncronisation in information in different Government portals. Various acts use different definition leading to mismatch in numbers. 

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Direct Taxes

The government imposes the direct tax on the income and wealth of the ....

Indirect Tax

Indirect Taxes are levied through a channel of consumption. Peron making payment of tax..

International Tax

nternational taxation is the study to determine where income is taxed when a person has...

Litigation

Litigation may happen with tax authorities either due to wrong filing of the...

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