Taxation Role - Financial Services

Accountability:

- Supporting Actions

- 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.