Direct Tax Health Check Service
Direct tax law in India is ever-evolving and updated or refined through amendments proposed every year via finance bills and notifications or circulars issued from time to time. It is also impacted by judicial precedents established by rulings of various appellate authorities and courts. Thus, to make sure that the business is keeping pace with tax compliances, MBG Corporate Services can assist through the Direct Tax Health Check Service in the following ways.
How MBG Can Assist
- Help improve awareness of tax compliance
- Identify possible risks and hidden tax exposures
- Provide recommendations to mitigate the tax risks
This service sits within broader taxation advisory services and specialized direct tax advisory services, particularly for businesses looking to proactively assess their tax compliance framework rather than respond only after a notice, audit, or exposure arises.
Scope of Service
Specifically, the scope of service that shall be provided by us shall include the following:
Business and Compliance Review
- Analyzing the nature of the business or profession carried on by the entity and determining the various applicable direct tax compliances
Review of Tax Positions and Return Filing
- Review of direct tax positions adopted in preparation of tax computation and filing of Income Tax Return on the basis of the following documents:
- Financial statement
- Tax computation
- Tax Audit report
- TP Certificate
- TP report
Corporate Tax Return and Reporting Review
- Checking for material non-compliances, if any, in filing of corporate tax returns, withholding tax returns, and tax audit reports, wherever applicable
TDS and TCS Compliance Review
- Checking whether the TDS or TCS is being deducted or collected on the transactions on which TDS or TCS is required to be deducted or collected
- Checking whether the TDS or TCS deducted or collected is being deposited to the Government treasury within due time
Overseas Remittance Compliance
- Reviewing whether Form 15CA and Form 15CB for making overseas remittances, wherever applicable, are being filed or not
Advance Tax Review
- Analyzing whether any advance tax liability is arising and, if so, whether the same has been deposited within due time
Concessional Tax Regime Review
- Checking whether the company has opted for taxation under Section 115BA, 115BAA, or 115BAB and, if yes, whether the relevant forms have been filed
Transfer Pricing Compliance Review
- Checking Transfer Pricing compliances
Deductions, Allowances, and Disallowances Review
- Checking the eligibility criteria of the deductions or allowances claimed and whether they are within the prescribed time limits
- Checking whether all the disallowances have been made and properly disclosed in the ITR
Losses, Depreciation, and MAT Credit Review
- Analysis of the set-off and carry forward of business losses or losses under any other head of income, unabsorbed depreciation, and credit of Minimum Alternate Tax, if any
ICDS Review
- Analyzing the effects of the Income Computation and Disclosure Standards (ICDS)
MAT Compliance Review
- Checking whether the Minimum Alternate Tax under Section 115JB has been correctly calculated, accordingly disclosed in the ITR and whether Form 29B is being filed
Tax Exposure Review
- Checking the liability of Income Tax, interest, and penalty, if any