Central Excise, Customs & Service Tax statutes represents one of the most complicated set of legislation. In addition to that, intensive interplay of statutory provisions, rules, notifications & clarifications, very often, makes the law unfriendly in practical situations. Complications are increasing due to sudden & fundamental changes in the statute & rules time & again. Hence, the indirect tax system & practice in any organization needs to be subjected to an in-depth review by independent professionals.

The main objective of such Corporate Review is based on pro-active pursuits and aims at reduction of protracted litigation at future date and helping corporate to earn, save, retain and reinvest what they earn and have indirect tax friendly system. The main objectives of such Corporate Review are mentioned hereunder:

In this aspects, we check as to whether a) Optimum availment of CENVAT credit on all eligible inputs, capital goods, input services is being taken by a corporate. b) Identifying eligible inputs, capital goods and input services, c) benefit of exemption notifications available under Customs & Central Excise are being properly utilized, d) right selection of export incentives schemes, f) proper distribution of input services from head office to various manufacturing units for its set off against Central Excise duty liability etc....

In this aspects, we check as to whether existing system maintained by corporate is adequate and proper and law friendly. For readers better understanding we provide an example (Law requires CENVAT credit on input material shall be taken immediately on receipt of goods in the factory. Thus, generally in a factory, CENVAT credit is being taken on the basis of material receipt note prepared at the factory gate and they have a system whereby Inputs are inspected and than if quality is approved a goods receipt note is being prepared by the store. In such situation the correct point for availment of CENVAT credit on input should be on the basis of GRN rather than MRN, since inputs may be rejected after MRN as a quality control measure and such improper system may sometimes lead to wrong availment of CENVAT credit on inputs not used for production having direct revenue implication as well as penal action. Likewise blending law with systems and/or procedures would provide positive results accordingly suggesting systems checks and/or controls wherever necessary.

Examining & Analysing issues as regards deviation from legal requirements w.r.t. valuation, classification, job work formalities, dutiability of waste & scrap, CENVAT, Export incentives & formalities etc..

Stability of procedural aspect being in relation to records and documents required to be maintained under statute.

Awareness of implications under Indirect Taxes referred here-in-above amongst concerned department being store, purchase/procurements, commercial, marketing, export, production, dispatch etc..

Reading Financial records for indirect tax implication and making necessary suggestion to have Customs, excise & Service Tax friendly financial records

A due diligence report shall be prepared and presented, based on our observation carried out during the course of review. The said report shall contain our observation on following :

        a) Suggestive Measures as regards revenue leakage and/or requirements,
        b) Measures as regards Excise, Customs, Service Tax, Foreign Trade Policy system checks,
        c) Responsibility of various department on Excise, Customs, Service Tax & FTP frontier
        d) Detailed procedural and documentation guidelines with suggestive course of action.

For carrying out a corporate review we shall charge professional fees varying between Rs.32,500/- to 2,75,000/- depending on time involved to carry out such review. In this connection, please note that such charges shall be towards drafting, finalizing and submitting due diligence report prepared by us based on our observation carried out during the course of corporate review and under no circumstances includes any charges towards any consultation and/or advice based on such due diligence report.

      We look forward for a communication as regards a date of meeting so that we may clarify your doubts, if any, and provide you more information about need for such corporate indirect tax review, if any, considering your existing structure and activities.