We help our clients to develop and implement group transfer pricing policy, document policies and outcomes and respond to tax authority challenges in order to formulate tax efficient, commercially viable transfer pricing strategies. Our bouquet of services include:
A.Transfer Pricing Services
B.Expat Taxation
C.Withholding Tax
A. Transfer Pricing:
With more and more business in goods and services taking place internationally, transfer pricing is an important part of doing business within any multinational group. It is one area that requires careful planning and consideration. Notwithstanding transfer pricing risk arising from lack of robust transfer pricing system design and documentation, a lack of proactive analysis and management in this area may translate to missed opportunities and a sub-optimal overall effective tax rate for the client group.
MGS Advisors assist clients in conducting a Transfer Pricing Study (“TP Study”) to proactively identify and design a transfer pricing system and policy that is consistent with the business model and sufficiently robust to support the arm’s length nature of the transactions taking place within the group. Amongst others, the services provided in transfer pricing services include:
o Planning
We help clients to develop and implement commercially sensible, fiscally efficient transfer pricing policies and modify existing policies to reflect changes in local law or business circumstances.
o Assistance in Documentation
We help clients in preparing TP Study to comply with the Tax laws in India.
o Compliance and documentation
We help clients to design and implement global compliance policies and procedures and provide certification services through our associate CA firm to comply with local laws.
o Implementation
We help clients to translate their transfer pricing policies into transaction-level prices, reconcile transfer pricing and automate transfer pricing calculations.
o Alternative dispute resolution
We also represent our clients before Dispute Resolution Panel (DRP).
B. Expat Taxation:
Tax issues are extremely complicated when an employee is a permanent resident in one country and works in another country. In many cases, he may be double taxed. Being double taxed would mean paying tax on the income earned in the resident country, as well as in the country where he shall be working as an employee. However, there are special foreign tax credits that can help offset double taxation in many circumstances. Also, when working in India under further complicated arrangements like secondments, temporary placements, joint employment etc there may be an incidence of Service Tax also. We provide professional services to expats in India in the following areas:
o Tax Planning and Compliances
We offer tax services for expats encompassing both Direct and Indirect Taxes as applicable in India. The scope includes primarily services in relation to Income tax and Service Tax. The services include advising clients on tax effective compensation structuring for their employees, advising client on the possible tax implications of his / his employee’s engagement in India, determination of residential status, planning the tax in most efficient manner, obtaining PAN / Service Tax registration, assistance in obtaining Tax Clearance Certificates, assistance in tax computation, filing of tax returns, estimation of advance tax and compliance thereof etc.
We provide assessment and appeal services through our Associated Chartered Accountant Firm. The services include drafting replies to enquiries by the tax authorities or appeals, representation in relation to assessments and appeals, communication with tax authorities etc.
C. Withholding Tax:
We provide services including withholding tax advisory for international transactions, evaluation of tax treaties to examine taxability and availability of tax treaty relief, representation in assessments and appeals, assistance in filing withholding tax returns, assistance in issuance of withholding tax certificates in prescribed form from associated CA firm for foreign remittances etc.