International Taxation Overview

GST comprises of various slab rates under which all the products are classified as per their HSN codes. For example, most of the general goods and services fall under 18% slab rate while some essential items fall under 5% slab. Some very essential products and services like healthcare are totally exempted from GST. The GST revenue collected is divided between States and Central level. It is a consumption- based tax whose revenue is given to that State government in which the good or service is consumed.

1. Tax Advisory and Business Setup : For every global organization eying to setup their businesses in India, it is always daunting to decide upon the legal investment route for optimum tax benefit. One of the ways could be to purchase the stake of an already established Indian entity or setup a new company altogether. However, any such decision requires careful consideration of tax laws.

We, at Aplite, provide all kinds of advisory services for business setups and establishments. We have been rendering services to multiple global clients to help establish their base in India. Aplite believes in complete handholding until the business becomes functional in India.

2. Transfer Pricing : It is a global regulation practiced by, almost, every country to regulate transactions between related global entities. Related global entities are entities with base in more than one country in the form of a separate legal entity and having inter-related transactions like sale, purchase, disbursement of loans etc. Entities with common ownership patterns also fall within this category. Transfer Pricing evolved to keep a check on mutual transactions between these entities so as to ensure that they are at par with normal business transactions and have not been entered into only to evade taxes.

Transfer Pricing regulations have always been challenging for entities and thus, it needs to be ensured that every transaction maintains arm length price and is as per the industry standards. Aplite’s professionals have a wide knowledge across this industry and thus, we are capable of guiding you better for your highest benefit and safety, in terms of tax litigations and penalties.

3. Expatriate Taxation : Every multi-national entity employs their own nationals in other countries in which their business has a base. Such employees are called Expatriates in the other country. The salary income and other perks received by such expats are subject to special provisions and rates under the Income Tax Act of the country they are employed in. Thus, salary structure of such employees needs to be carefully planned and designed to reap maximum tax benefits and avoid double taxation of income.

We, at Aplite, provide all services related to expatriate taxation including:

• Salary Structure Planning
• Tax Planning
• Tax Deducted at Source (TDS) calculations
• Income Tax Return Filing
• Obtaining Income Tax Clearance Certificates/ No Objection Certificate
• Expatriate Litigation

4. NRI Taxation : Non-Resident Indians are citizens of India living abroad mainly for the purpose of employment. The income earned by such NRIs is taxable in India as well as in the country they reside in, owing to Source and Residency rules of taxation followed worldwide. In such cases, their incomes become prone to double taxation which lays heavy on their pocket. However, many benefits have been given to such citizens under Indian Income Tax Act as well as per the respective Tax Treaties (also called DTAAs) signed between the countries. But such treaties need to be carefully studied and interpretated to determine correct taxability.

Aplite has been delivering various NRI taxation services to more than 1000 clients. We specialise in all types of business, salaries and interest income taxability. With operations worldwide, we are aware about recent global developments in the field of tax and thus, we render tax advisory accordingly.

Want to know more? Contact us today and our team will guide you further.