Goods and Service Tax (GST) has become a game changer in the Indian tax system. However, business owners should also be aware of other types of indirect taxes such as Service Tax on Services, Excise Duty on manufacturing of goods, Customs duty on goods at the point of import, Sales Tax / Value Added Tax ("VAT") and Central Sales Tax ("CST") on sale of goods and Entry Tax on entry of goods into a state.
Since these taxes vary state-wise within the country, management of indirect taxes is a quite a challenging task and one needs expert advice to steer through the complex maze of this tax structure. Our indirect tax specialists have in-depth familiarity of the various laws and regulations pertaining to each state.
We provide the following services to our clients across India.
The Special Valuation Branch ("SVB") is a component of the Indian custom authorities that investigates the precise valuation of various goods especially during imports between two interrelated parties. A distinct relationship between an Indian importer and a global supplier may affect the deal price of the import and thus affect the customs duty levied. SVB's role is accurately examine the impact of such association on the invoice cost of the imported goods.
Under Section 14 of the Customs Act, 1962, the customs duty is compulsory on the value of the imported goods. When the Indian buyer and overseas supplier are related, the goods may be imported at a reduced price (discount) that could be lower than the normal market price. Consequently, the customs duty levied will be lower leading to a possible loss in revenue accruing to the establishments. We help administrations understand the standards laid down in Rule 2(2) to review if the importer and exporter are related. The Customs Valuation (Determination of Value of Imported Goods), Rules, 2007 ("Rules") necessitate every importer to provide data to the custom authorities in a bill of entry on the basis of which the taxes are assessed. We help establishments file the info on a timely basis.