Tax

Module Scope

• Does the organisation meet the Indian tax obligations arising from its activities, transactions, assets and organisational roles?
• Does the organisation correctly determine and discharge the tax liabilities applicable to its domestic, cross-border and specialised activities?
• Does the organisation maintain an accurate tax position across direct taxes, indirect taxes and transaction-based taxes?
• Does the organisation respond appropriately to tax assessments, demands and dispute-resolution matters?

Module Application

The Tax module addresses the Indian taxation obligations that may apply to an organisation’s activities, transactions, assets and roles. It covers direct and indirect taxation, customs and transaction-based taxes, specialised tax regimes and the management of tax assessments, demands and disputes.

The module reflects the Indian legal framework for income tax, withholding taxes, international tax and transfer pricing, goods and services tax, customs, securities transaction tax, stamp duties, foreign assets, benami property, IFSC and SEZ activities, and other indirect taxes and cesses. It also addresses the procedural framework for returns, reporting, records, assessments, recovery and appeals.

The Tax module provides information to organisations about how to comply with legal responsibilities when dealing with the following:

• Income-tax residence, taxability, registration, business-income computation, deductions, reliefs, payments, records, audits and returns;
• Tax deduction and collection obligations associated with relevant payments and receipts;
• Cross-border tax treatment, related-party transactions, transfer pricing, foreign tax credits and tax-treaty matters;
• GST registration, supply classification, invoicing, input tax credit, payments, returns, refunds and inter-State or zero-rated supplies;
• Customs requirements for imports, exports, valuation, classification, origin, warehousing, concessions and related claims;
• Securities transaction tax, stamp duty and other taxes arising from relevant transactions or instruments;
• Foreign-asset disclosure, prohibited benami transactions and related tax liabilities;
• Tax matters arising from activities through an IFSC or SEZ;
• Legacy GST Compensation Cess, Central Excise, Central Sales Tax and other applicable cesses;
• Tax assessments, information requests, demands, rectification, recovery, penalties and dispute resolution.

The Tax module also comprehensively covers requirements arising under key Indian instruments and frameworks, including:

• Income-tax legislation and associated rules, including the current and earlier income-tax regimes where relevant;
• GST legislation and rules, including central, integrated and Union Territory GST arrangements;
• Customs, customs tariff and customs warehousing frameworks;
• SEZ and IFSC legislative frameworks;
• Securities transaction tax and stamp duty frameworks;
• Foreign-income, foreign-asset and benami-property legislation;
• Central Excise, Central Sales Tax and GST Compensation Cess frameworks.

The module applies to organisations according to their activities, transactions, assets, tax status and the roles they perform. The relevant obligations may apply to Indian residents and non-residents and may extend to organisations with Indian-source income, cross-border dealings or transactions connected with India.

The Tax module should be subscribed to by any organisation that:

• Carries on business, professional or other taxable activities in India;
• Earns income that may be taxable in India or is required to meet Indian income-tax reporting obligations;
• Makes payments or receives amounts that may be subject to TDS or TCS;
• Has cross-border, related-party or transfer-pricing transactions;
• Supplies, receives, imports, exports, stores or transports goods or services subject to GST or customs requirements;
• Enters into, facilitates or processes relevant securities transactions or dutiable instruments;
• Holds, manages or is connected with foreign assets, foreign income or property arrangements subject to the relevant legislation;
• Conducts or proposes to conduct activities through an IFSC or SEZ;
• Is subject to applicable legacy indirect-tax or cess obligations.

The specific questions and answers covered by the module include:

• How to determine whether income, activities and transactions are subject to Indian tax;
• How to calculate taxable income and apply relevant deductions, reliefs and tax treatments;
• How to meet payment, withholding, collection, return, record and audit obligations;
• How to address the tax consequences of cross-border and related-party dealings;
• How to determine GST registration, liability, supply treatment and entitlement to input tax credit;
• How to comply with GST requirements for invoicing, returns, refunds and supplies across States, Union Territories and export or SEZ arrangements;
• How to meet customs requirements for imports, exports, warehousing, valuation, tariff treatment and preferential origin;
• How to address securities transaction taxes, stamp duties, foreign-asset matters and specialised tax regimes;
• How to respond to tax notices, assessments, demands, recovery action and available dispute-resolution processes.

The module addresses obligations throughout the tax compliance lifecycle, from determining tax treatment and meeting registration requirements to payment, reporting, verification, assessment and dispute resolution. The materials also identify that non-compliance may result in interest, recovery action, penalties and, for specified serious contraventions, prosecution or other statutory enforcement action.

The Tax module supports organisations in understanding and meeting the Indian tax responsibilities relevant to their activities, transactions, assets and roles, while enabling them to address the procedural and enforcement consequences that may arise under the applicable tax regimes.