An overview of our Indirect Tax Services

info@consultconstruction.com
www.consultconstruction.com
An overview of our Indirect Tax
services

Consult Construction is a consulting firm with all governance,
compliance and IT related services related to the construction sector
under one roof.
Focus Areas :-
Corporate Governance
Management Audit
Project Budgeting and Monitoring
Indirect Tax Compliances
Corporate Training
Information Technology and Allied Services
ISO Implementation

Core Team
Mr.Sandesh Mundra - Indirect Tax & Management Audit
Mr.S N Mundra - Compliances
Mr.Samir Siddhpuria - VAT
Mr.Philip Fernandes - Excise
Mr.Dinesh Kavi - Labour Laws
Ms.Suman Mundra - Management Audit
Mr.Sanjay Christian - Management Audit
Ms Pooja Jajwani - IndirectTax Consulting
Authored - Technical Guide on “Business Controls, Monitoring and
Internal Audit of Construction Sector”

Authored the technical Guide on “Business Controls, Monitoring and Internal Audit of
Construction Sector” issued by ICAI in 2011.
One of our team members has been appointed to the three member National level Direct
and Indirect Committee of Builder’s Association of India (BAI) for year 2014. Successful
representation to the Ministry of Finance on service tax related issues on behalf of BAI.
Paper on “Accounting Controls in Construction Sector” chosen for publication in January,
2013 issue of National Journal of ICAI.
Paper on "Budgeting Challenges for construction sector" chosen for publication in August
2013 issue of National Journal of ICAI.
Our team members have acted as a speaker on various topics in seminars and study circle
meets organised at Mumbai, Ahmedabad, Gandhinagar, Navsari, Jamnagar, Rajkot and
Nadiad Branches and study circles of ICAI.
Our team members are Regular Column writers for Indian Construction (Journal of
Builder’s association of India), CA Associaton Ahmedabad & web portals like Consult
Construction.com & Consolidation of accounts.com
Our Team Achievements

We have pan India Network of VAT Consultants at following locations

Our Services

CREDIT MAPPING & OPTIMISATION
In terms of the indirect tax provisions (service tax, VAT and excise) a
manufacturer or service provider is eligible to claim input tax credit of tax
paid on goods and services. The said credit can be utilized for payment of
indirect tax liability. Thus the input tax credit is akin to cash on hand
which can be used for making tax payments. It is essential that a
manufacturer or service provider avails all the eligible input tax credit in
terms of the applicable input tax credit provisions and optimizes the same.
• Credit mapping and optimisation cover the following:
• Identifying expenses on which tax is paid.
• Evaluate expenses on which input tax credit has not been availed.
• Evaluate the eligibility in terms of applicable input tax credit
provisions.
• Put a system in place to ensure optimum input tax credit availment.

STRUCTURING & PLANNING
Setting up a new business or expanding an existing one attracts various
indirect taxes. It is observed that indirect tax planning is generally done
post execution of the arrangement; thus leading to loss of indirect tax
benefits or credit, higher payment of taxes, inefficient indirect tax
structure. Therefore it is essential that the transaction is evaluated,
structured and planned specifically considering the indirect tax impact:-
• Structuring & Planning would broadly cover the following:
• indirect tax analysis on proposed transactions.
• Tax neutralization / optimisation advice.
• Agreement review/ drafting.
• Advice on setting up business in tax efficient manner.
• Identify mechanics to optimize tax credits and reduce cascading of
taxes.

MANAGEMENT OF SUB-CONTRACTOR
• We help plan proper contracting
arrangement with the sub-contractor, taking
care of tax, legal and several control related
issues. We also ensure regular reporting
formats/ MIS on daily and monthly basis.

PLANNING FOR WITHHOLDING TAXES
• WCT deduction is a very critical issue. It can
be planned keeping in mind the relevant
provisions of relevant VAT law in mind.

MULTI STATE VAT
• VAT / Sales tax in India is a state level tax
• Difficult for a business man to learn and keep track of all statues
applicable under different states
• Continuous amendments in the state laws make it very difficult
for multi locational companies to comply within time bound
manner with optimum utilizations of available benefits.
• We have dedicated team of experts and proper infrastructure
facilities to provide one stop solutions to comply with VAT law
across the country. It obviates need to appoint consultant
separately for each of the states. It would reduce communication
gap, provide expert hand and save time & cost with optimum
productivity. Ultimately bringing peace of mind to your taxation
department.

HANDLING APPELLATE PROCEEDINGS
Our services cover the following :-
• Representation before all adjudicating Authorities
including CESTAT.
• Representation before Advance Ruling Authority.
• Representation before Ministry of Finance.
• Representation before Settlement Commission for
settlement of cases.
• Day-to-day litigation support on notices, summons
etc. received from tax authorities.

Subscribe to our E-Bulletin
email - info@consultconstruction.com
• VAT and Service Tax updates for the construction / Project sector
companies.
• Legislative changes and major case laws under the State VAT Laws and
under Service Tax law affecting the construction /Project Sector.
• In addition our brief analysis and comments on the various
developments.

Areas of our Expertise

6
SALE VS. WCT
NECESSITY OF DISTINCTION
• Diﬀerent tax rates on sale and works contract.
(At times the rates are very beneficial).
•Deduction for labour & services available only on wo
rks contract transactions. (RMC contracts).
• TDS (Income Tax as well as VAT) is deducted
only on Works Contracts. (Refund Hassles).
• Diﬀerent provisions under Excise Duty as well as
Service Tax. (Jobwork).
Identification of Transaction

Advice on Structuring of Contract on case
to case basis
Nature of Transaction
Pure Labour Contracts
Labour contracts with minor element of material transfer involved
Pure supply contracts with or without an incidental element of service)
Divisible contracts, i.e. where elements of sale of goods and labour can be
clearly segregated
Indivisible Contracts, where parties agree for a lumpsum consideration for the
entire contract. The sale element and labour elements are not separately
identifiable.

Taking care from start till the end
1. TENDER DOCUMENT
2. AGREEMENT / CONTRACT
3. RUNNING BILLS / INVOICES
4. RECORDING IN ACCOUNTS
5. RETURNS UNDER DIFF. ACTS
6. DOCUMENTS PRESERVATION
7. ASSESSMENT / APPEALS
4
ABOVE ALL,
CONDUCT OF THE
PARTIES -‐ TO BE
ACCORDINGLY

Valuation options under
Works Contract
• Actual Labour
deduction • Standard Labour
deduction
• Composition
• Impact of exercising an option can be
significant.

Our planning takes care of all the taxes, to give
the most optimised solution to the client
Present Tax
Structure
[ 4 Important
Constituents]
Excise Duty
Entry No. 84,
List I, Schedule
VII
Taxable Event is
Manufacture
Service Tax
Residuary Entry
No. 97, List I,
Schedule VII
Taxable Event is
Provision of
Service
Sales Tax
/ VAT/
CST
Entry No. 54 of
List II ( VAT) and
92A of List I
( CST)
Taxable Event is
Sale
Customs
Duty
Entry No. 83,
List I, Schedule
VII
Taxable Event is
Import & Export
Entry Tax/
Entertainment
Tax
Entry No. 52
&62 List II,
Schedule VII
Taxable Event is
Entertainment
& Entry of
Goods

Checklist to understand VAT on Works
Contract
We have state specific VAT checklists which
help us in giving instant replies to client on
any works contract related issues related to
any state of the country

Benefitting from CST
SOI
Seller
Outside
High-sea
Seller sales
India
Outside India
India
EPC Contractor
sale exempt from VAT
Project Authority
Transfer of document of
title
Movement of goods
India
EPC Contractor
High sea sale exempt from
VAT
Project Authority
Transfer of document of title took place
before the goods crossed the customs
frontier
40

FromState3
FormC
All rights reserved| |3232CONTRACTS – TAX TAX AND VAT
State 3
VENDOR
In-transit Sale
No CST
PROJECT OWNER
CONTRACTOR
Form C
Form E-I
State 1
PLANNING IN TRANSIT SALES MECHANICS
Physical movement of
goods
Contractual relation
Endorsement
of transport
document and
fresh invoice
on Project
Owner
State 2

We can help you cope up with the Expected
Impact of GST by doing a prescrutiny of your
contracts and suggesting necessary
modifications in your ERP

Some of the companies who have attended our
workshops on Indirect Taxes

Thank you

An overview of our Indirect Tax Services

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