1.1 b] Corporate Taxation

The residential status of a company can be determined as follows:

• An Indian company is always a resident in India.
• A foreign company is resident in India only if, during the previous year, the control and management of its affairs are situated wholly n India.
• A foreign company is treated as non-resident if, during the previous year, the control and management of its affairs are situated either wholly or partly out of India.

Minimum Alternate Tax

Normally, a company is liable to pay tax on the income computed in accordance with the provisions of the income tax Act, but the profit and loss account of the company is prepared as per provisions of the Companies Act. Under the existing provisions of Section 115JB(1), a company is required to pay a minimum alternate tax(MAT) on its book profit, if the income tax payable on the total income, as computed under the Act in respect of any previous year relevant to the assessment year is less than the MAT. The amount of tax paid under the said section is allowed to be carried forward and set off against tax payable up to the tenth assessment year immediately succeeding the assessment year in which the tax credit becomes allowable under the provisions of section 115JAA. The rate of MAT for the assessment year 2012-13 is eighteen and one-half percent.

Dividend Distribution Tax

A domestic company is liable to pay additional income tax on any amount declared, distributed or paid by such company by way of dividend (whether interim or otherwise) on or after 1-06-1997, whether out of current or accumulated profits. Such additional income tax is payable @ 15% of the amount so distributed + applicable surcharge + education cess + secondary & higher education cess for the assessment year 2012-13. This additional tax shall be payable even if no income tax is payable by such company on its total income.

Transfer Pricing

As Income Tax Act is prone to many changes, decision maker should be perfectly updated with new amendments. Our team of professionals is abreast with the current knowledge so that they can provide customized and innovative solutions to our clients. We provide the following advisory services to our clients:-

• Recommending tax strategies which would minimize tax incidence.
• Tax planning for Non-Resident Indians (NRI's), overseas entities desirous of setting up a business in India.
• Handling assessment, Revision and appellate proceedings.
• Corporate tax management and consultancy.
• Transfer Pricing studies & its findings.
• Preparation and filing of tax returns in India and various other procedural compliance such as preparing and filing applications for a Permanent Account Number, Tax Deduction Account Number, certificate for non-deduction of taxes at source.

1.2] Wealth Tax

Wealth tax is a direct tax, which is charged on the net wealth of the assessee exceeding Rs. 30 lakhs. It is taxed on assets as defined under sec 2(ea) of the Wealth Tax Act, 1957 owned by an assessee as on 31st March of the preceding financial year. The following are few of the assets subject to wealth tax:

• Guesthouse, farm-house, commercial complex and residential complex.
• Jewelry and items made up of precious metals like gold, silver, platinum or any other precious metal.
• Aircrafts, yachts, boats that is used for non-commercial purpose.
• Motor car owned by an individual.
• Wealth tax, in India, is levied @ one percent under Wealth-tax Act, 1957.

We provide the following services:

• Advisory Services with regards to wealth tax matters.
• Filing of W.T Return in Form BA.

1.3] Tax Deducted at Source

In respect of TDS, we would like to inform you that as per amendments to Income Tax Act, 1961, any expenses incurred without deduction of tax would be disallowed thereby resulting to higher tax outgo.

With respect to the above scenario we shall offer the following services

• Information regarding the heads of expenses and amount from which tax needs to be deducted.
• Information regarding the rate and the limit above which tax is to be deducted.
• Confirm timely payment of tax to the government.
• Compilation & filing of quarterly E-TDS Returns.