Taxes on income have an important bearing on the operations, commercial arrangements and profitability of any enterprise. Nearly every long-term and short-term business decision, whether structuring or transaction-related, needs to factor tax.
If this is your situation
- You want to ensure that your tax function is aligned with your business plan
- You want to know what impact tax and regulatory changes will have on your business
- You have to make payments (local / overseas) to a host of parties and want to determine the correct amount of TDS.
- You want assistance in litigation before the Tax Authorities, Tribunals and Courts
How we can help
- Provide the deep accounting and compliance knowledge and tried-and-tested methodologies you need for efficient reporting
- Drafting grounds of appeal & other submissions for effective understanding of facts by the authorities
- Choice of appropriate form of entity for setting up Indian business activities
- Optimum use of corporate tax incentives in proposed business activities
- Build sustainable tax strategies based on technical, practical, commercial and industry knowledge
- Help in complying various requirements of the Income tax act like TDS returns and IT returns, Tax Audits Etc.
What is International Taxation?
International taxation is the study or determination of tax on a person or business subject to the tax laws of different countries or the international aspects of an individual country’s tax laws.
Work out your tax residency
To understand your tax situation, you must first work out whether you are an Indian resident for tax purposes. Indian residents are generally taxed on their worldwide income from all sources. Foreign residents are generally taxed only on their Indian-sourced income, such as money they earn working in India.
Coming to India
To work in India you will need a work visa and a permanent account number. Your employer will withhold tax from your wages and deposit it to the Indian government – you then lodge an annual tax return and the government will send you a tax refund if you are entitled to one. You may also be entitled to superannuation (retirement savings).
If you are coming to India on a working holiday you will probably be taxed as a foreign resident. If you are coming to India to study in a course that is more than six months long, or are moving to India permanently, you will probably be taxed as an Indian resident.
Whether you will remain an Indian resident or become a foreign resident, there are things you need to do to get your tax affairs in order. If you remain an Indian resident while working overseas, you must declare your worldwide income in your Indian tax return, even if the tax was taken out in the country where you earned the income.
Investing in India
Foreign residents are taxed in India on income earned from their Indian investments. For interest, unfranked dividends and royalties, tax is generally withheld in India at the time of payment. But if you receive rental income from Indian properties or capital gains from selling Indian assets, you must declare these amounts in an Indian tax return.
As an Indian resident, you are taxed on your worldwide income, including your income from interests in foreign entities, renting overseas properties, and selling overseas assets. If you have paid tax on this income in another country, you can claim a foreign income tax offset in India.
Transfer pricing refers to the pricing of goods, services or intangibles within a multinational organization, particularly in regard to cross-border transactions. The vast majority of global trade occurs between related-party entities. As global trade increases, companies are confronted more and more with complex issues associated with intercompany pricing. This is compounded because many countries have specific transfer pricing legislation, and the tax authorities within those countries aggressively pursue transfer pricing adjustments. It is no wonder transfer pricing is often listed as the single most important international tax issue facing multinational companies.
What BJS Offers
As a day and on the radius of International taxation is increasing, there rises the need for professionals who can tackle all the compliances related to International taxation. We at BJS and Associates, provide all related and nested services include an end to end solution like advice on international taxation to meeting compliances with our expert team of Tax Consultants in India. Also, we undertake a review of specific agreements to identify the applicability of tax. Our area of services includes:
- Transfer pricing planning and documentation
- Dispute Resolution
- Advance pricing agreement
- Risk and opportunity assessment
- Intellectual property valuation