A state needs money to manage its finances and administer its government. Therefore, the government levies several types of taxes on the income of both individuals and corporations. In India, the Central Government and the State Governments each have their taxing authority. The local governments, including the Municipality and the Local Governments, also levy a few small taxes. Taxes may be broadly categorized into two groups: direct taxes and indirect taxes.
A tax that is paid directly to the institution that is imposing it by an individual or an organization is known as a direct tax (generally government). The phrase "indirect tax" has several different meanings. In the common meaning, an indirect tax is collected from the person who will ultimately suffer the economic burden of the tax through an intermediary (such as a retail store), such as sales tax, a particular tax, value-added tax (VAT), or goods and services tax (GST) (such as the consumer).
At KSK, our team of tax experts advises on all aspects of tax requirements for companies in the following areas:
Approach at KSK
The income tax and international tax systems in India are complicated. Managing the tax function in most organizations may be difficult since the legislation is continually changing to reflect the government's current policies and because the tax department is tenacious and tends to litigate most disputes. The business climate is evolving, and tax assessments and compliances, which are increasingly a cornerstone of businesses, need continual monitoring and assistance. To help companies and individuals, KSK adopts a multidisciplinary approach.
Our tax team is comprised of veteran lawyers, accountants, economists, and technologists to combine the expertise of different domains. They regularly work with the other practice groups such as M&A, Private Equity and Fund Practice Group, Litigation Practice Group, Infrastructure, and Project Finance Group to have a comprehensive understanding of issues and deliver efficient legal solutions.
The Central Government and the State Governments each levy their taxes under India's system of taxation. Local governments like the Municipality and Local Governments also impose a few small levies. The Income Tax Department of the Central government oversees direct taxes. The organization is in charge of collecting income tax throughout the nation and is a part of the Finance Ministry's Department of Revenue. The Central Board of Direct Taxes (CBDT), which has regional offices set up in various regions of the nation to oversee tasks in that portion of the country, is the top body in the Income Tax Department. All tax-related issues affecting various investments are governed by the Income Tax Department.
The value ascribed to the commodities or services moved between related parties is known as transfer pricing. In other words, transfer pricing is the cost of transferring products or services from one unit of an organization to its other units, which are located in several nations (with exceptions). The transfer pricing techniques that might be applied to determining the arm's-length price of the regulated transactions are covered in the Organisation for Economic Co-operation and Development (OECD) standards.
According to rule 6F, records must be kept if the income was less than Rs. 2,50,000 in any of the three years before or is not anticipated to be more than Rs. 2,50,000 in the case of a new profession. However, because no specific books have been mentioned in this situation, any books that are kept should be organized so that the ATO can determine the revenue. Six years after the end of the applicable year, books must be kept on file.
According to the Companies Act, books must be kept on file for eight years following the conclusion of the relevant financial year. Additionally, books and records must be kept for six years after the annual return for that year was last filed; under GST Act.
Yes, one may apply for relief with regard to income subject to tax both domestically and internationally. The Government of India either grants relief in accordance with the terms of any double taxation avoidance agreements it has (if any) entered into with that nation, or it grants relief in accordance with section 91 of the Act with respect to tax paid in the foreign nation.