Regulatory Filings With Tax Authorities

Annual Filing Of Income Tax Returns, Transfer Pricing Audit Reports, Master File Part A Of Amc India, Amc Dubai And Amc Singapore:

Corporate Income Tax Return Involves Preparation Of Tax Computation On The Basis Of Tax Regulations. There Is A Separate Working Of Capital Gains For Redemptions Made During The Year. After Finalizing The Income Tax Computation, Income Tax Return Form Is Finalized And Income Tax Return Is Filed Using Md'S Signature.

For Finalising Transfer Pricing (Tp) Audit Report, Data/Invoices, Explanation Of The International Transactions Are Shared With The Tp Auditor Who Peruses The Data, Comes With The Queries Which Are Required To Be Addressed. Post Solving All His Queries, Transfer Pricing Audit Report Is Finalised By The Auditor Who Uploads The Data On Income Tax Website. The Uploaded Data Is Filed Using Md'S Signature. Master File Part A Is Also Finalised Post Analysis Of Related Parties From The Annual Reports And After Rounds Of Discussions With The Auditor, It Is Filed With The Tax Authorities. The Entire Process Completion And Filing Of Tp Return Takes Minimum 1-2 Months.

- Advance Tax Computation Is Made On Quarterly Basis (4 Times A Year. Basis The Tax Regulations, Adjustments Are Made In The Working. After This, Estimation Is Made For Annual Income And Tax Liability Is Finalized. Then It Is Paid To The Tax Authorities

- Monthly Gst Return Filings (Twice A Month At Present) W. R. T. 29 States (Other Than Mh) Needs To Be Made With Gst Authorities. This Comes To Filing Of 58 Gst Returns Every Month. Accordingly, Annually 696 Gst Returns Are Filed For The States Other Than Mh. Working Out State Wise Gst Liability Separately And Completion Of Filing Gst Returns On The Gst Portal And Making Payment Of Tax Within The Statutory Timelines.

- Gst Annual Return And Audit

- Gst Annual Return And Audit Is Required To Be Completed Once A Year. Filing Of Gst Annual Returns And Gst Audit Reports Are Two Separate Activities. Accordingly, 58 Filings Are Required To Be Made Under This Task (29 Filings Of Gst Annual Returns And 29 Filings Of Gst Audit Report). For Gst Annual Return, Analysis Of Gstr 3B Filings Made Throughout The Year (~350 Plus Gst Returns I.E. 29 States - 12 Months Filed During The Year) Are Scrutinized Vis- Vis Input Tax Credit Booked In The Books Of Accounts And Input Tax Credit Considered While Filing Returns Is Scrutinized. Once The Auditor Is Convinced After Rounds Of Discussion, Gst Audit Report Is Filed On The Portal.

Tax Audit :

- This Is An Annual Activity For Filing Of Tax Audit Report (Containing 44 Clauses) With Income Tax Authorities. Each Clause Requires Detailed Analysis For Checking It' S Applicability And Each Required Disclosure Needs Separate Working.

- There Are Certain Clauses Like Tds Reconciliation Which Is A Mammoth Task As It Requires Reconciliation Of Expenses Debited In Profit And Loss Account With Tds Returns Filed During The Year. If Any Expense On Which Tds Is Applicable And It Is Not Deducted Or Deducted At A Reduced Rate, Then There Will Be Penal Consequences.

- Hence, There Needs To Be A Justification Of Why Tds Was Not Deducted/Deducted At A Lower Rate. In Order To Arrive At The Said Justification, Each Head Of Expense Needs Analysis. Further, Under Input Tax Credit (Itc) Clause, Reconciliation Is Required To Be Submitted Of Itc Booked And Itc Availed In The Gst Returns. Due To Such Analysis Mentioned Above, Tax Audit Becomes Voluminous Activity Which Is Due Once A Year But It Takes 3-4 Months For Completion Due To Nature And Complexities Of The Workings As Mentioned Above.

- Further, It Requires To Re-Evaluate Stands Taken In Previous Years Which Involves Research Of Tax Updates. Once, In Addition To Other Workings, All The Abovementioned Reconciliations/Workings Are Done And All The Queries Raised By The Tax Auditor Are Solved, Tax Audit Report Is Filed With The Tax Authority Under Md'S Digital Signature.

Statutory Audit :

- Submission Of Data Pertaining To Monthly Gst Working To The Statutory Auditor. Addressing Their Queries In Relation To The Workings.

- Computation Of Quarterly Income Tax Provision: Analysis Of Financial Statements Is Done. Post That Adjustments Are Identified From The Financials And Are Made In The Income Tax And Deferred Tax Computation. After Verification, Tax Provision Is Finalized And Entry Is Passed In The Books. Quarterly Tax Cost Is Analysed If There Is Any Variation As Compared To Previous Quarters.

Tax Advisory :

- It Involves Study Of Applicable Tax Provisions, Their Interpretations And Research In Order To Render A Tax Advice Internally.

- Ops. Team Shares The Investor Queries Like If Double Tax Avoidance Agreement (Dtaa) Of India And Country Of Residence Of Investor Is Applicable Or Not I. E. If Reduced Rate Of Tax Can Be Deducted On Payments Made To Investors (Generally Having High Value Investments). Each Case Is Studied Separately In Light Of The Dtaa And Available Documents. Post Research, The Dtaa Applicability/Non-Applicability Is Communicated To The Investor.

- Depending On The Regulations, Annual/Semi-Annual Tax Related Submissions Are Required To Be Made With Statutory Bodies Like Sebi. The Submission Document Is Reviewed Thoroughly To Check If All The Latest Updates Pronounced By Budget Or Otherwise Are Considered In The Document.

- Legal Team Sends Agreements Received By Them From Business Teams For Vetting Of Tax Clause. After The Vetting Agreement Is Finalised.

- Finance Ministry Comes Out With Union Budget Every Year Containing Direct/Indirect Tax Proposals. Once Budget Is Out, It'S Impact Is Assessed On Abslamc. If There Is Any Amendment Impacting Business (Like In Fy 2019-20, Tds On Dividend Was Introduced Impacting Abslamc), The Same Is Communicated Internally.

- Marketing Team Sends Draft Of Proposed Communication To Be Displayed On Company Website For Review In Case The Material Is Related To Tax. The Said Draft Is Reviewed, Modified If Required And Then Given A Go Ahead To Display On Website.

- Before Union Budget, Business Teams Communicate The Peculiar Issues Faced By Them From Tax Perspective Or If There Is Any Particular Issue Faced By Tax Team, It Is Identified By Tax Team. The Representation Of Such Specific Issue Faced By Mf Is Drafted So That It Will Be Sent To Amfi And Then Finance Ministry Before Union Budget For It'S Inclusion In The Budget.

- After Union Budget Is Out, Annual Tax Reckoner Is Issued After Analysing The Budget Proposals Which Is For The Benefit Of Various Stakeholders Like Business, Finance, Marketing Team Etc.

- Tax Related Analysis Is Made And Shared With Group Tax Team As And When Required By Group,

- Tax Litigation

Handling Direct/Indirect Tax Litigation:

- Every Year Income Tax Department Sends Notices And Asks For Data/Explanations On Tax Stands For A Particular Assessment Year In Question. Replies To The Said Notice Is Required To Be Given In The Timeframe And Also Hearings Are Required To Be Attended With The Officer For Explaining Him The Tax Positions. After Multiple Rounds Of Hearings And Submissions, Officer Issues Assessment Order.

- As Gst Is A State Wise Compliance, State Gst Officers Issue Notices, Ask For The Data/Explanation Etc. As And When These Notices Are Issued, Need To Share The Requisite Information/Explanation To Them.

- Rbi Related Filings

- Annual Performance Report (Apr) Is Required To Be Filed With Rbi. The Said Apr Is Mandatorily Required To Certified By Statutory Auditor. The Apr Is Required To Be Prepared Using Financial Statements, Needs To Be Explained To The Auditor For Certification And Finalized Once Auditor'S Queries Are Solved.

- Statement Of Foreign Liabilities And Assets (Fla) Is Prepared Every Year After Analysis Of Financial Statements And Then Filed With Rbi.

Others :

Improvements In System/ Deliberation With It Team And Getting Tax Related Processes Automated Wherever Possible (Tds/Gst Report): Latest Budgetary Amendments Require Certain Automation/System Change. It Is Taken Up With The It Team And New Reports Are Devised In Order To Reduce Manual Efforts In Tax Filing And Increasing The Efficiency Thereby.

O Approving Vendor/Tax Payments Upto Rs. 75,000/-