Tax Due Diligence
Tax Due Diligence
Tax due diligence is a crucial aspect of evaluating Indian companies, especially in the context of mergers, acquisitions, or investments. It involves a comprehensive examination of a company’s tax-related matters to assess its financial health and potential liabilities, ensuring that all tax obligations are met. India’s tax landscape is intricate, comprising income tax, goods and services tax (GST), and various state-level taxes, making thorough due diligence imperative.
Moreover, tax due diligence extends to understanding the impact of recent tax law changes or amendments, ensuring that the investment or acquisition aligns with the latest tax regulations.
Navigating Tax Due Diligence: Clarity & Precision
Tax due diligence reveals information, including pending tax assessments, unutilized tax credits, and transfer pricing compliance. It aids in understanding transaction tax implications, impacting deal structuring and pricing. We review target company financial records, tax returns, and compliances, identifying potential risks. Ensuring accurate accounting for deductions, credits, and exemptions, our tax due diligence aims to provide a comprehensive understanding of all tax-related aspects in a transaction.
Our Tax Due Diligence Services
Our Tax Due Diligence Services
Income Tax Due Diligence
This service involves a detailed examination of the target company's income tax records, including income, deductions, credits, and compliance with income tax laws. It aims to identify potential income tax risks and liabilities that may impact the transaction's financial aspects.
Indirect Tax (GST, VAT, Excise, Customs) Due Diligence
This service focuses on evaluating the target company's compliance with indirect taxes such as Goods and Services Tax (GST), Value Added Tax (VAT), Excise, and Customs duties. It assesses the accuracy of tax filings, potential liabilities, and adherence to complex indirect tax regulations.
Transfer Pricing Due Diligence
In cases involving international transactions or related-party transactions, transfer pricing due diligence is critical. It ensures that the transfer pricing policies of the target company align with regulatory requirements, minimizing the risk of transfer pricing adjustments.
Historical Tax Liabilities and Disputes Review
This aspect of tax due diligence involves a thorough examination of any historical tax liabilities and ongoing tax disputes the target company may be facing. It assesses the potential financial impact and unresolved issues that could affect the transaction's terms and conditions.
How We Deliver Tax Due Diligence Services
How We Deliver Tax Due Diligence Services
Risk Identification
Our tax due diligence services focus on identifying potential tax risks associated with M&A or restructuring transactions. This includes examining income tax and indirect tax implications such as GST, VAT, Excise, and Customs duties.
Timely Stakeholder Communication
We ensure that stakeholders are promptly informed about any identified tax risks. This enables them to account for these risks in the valuation of the deal and subsequent negotiation processes.
Cost Assessment
Our services help stakeholders assess the financial impact of tax-related issues, allowing for a more accurate valuation of the transaction. This ensures that all associated tax costs are considered during negotiations.
Support
We provide both income tax and indirect tax due diligence services, offering a holistic approach to tax assessment in M&A and restructuring transactions. This support ensures that all tax-related aspects are thoroughly evaluated and addressed.
Time Bound Services: We help in timely closure of TDD engagement, enabling you to make appropriate decision about transaction timely.