Regulatory

Representation Work 

These are assignments wherein we represent our clients before BIFR . These may include representation before the Assessing Authority under Taxing Legislation, Appellate Representation and representation before authorities under other non-tax legislation such as Monopolies and Restrictive Trade Practices Commission, Consumer Protection.  

International Transactions

International Transactions can be classified in to Capital Account and Current Account Transactions.

The legal position on these transactions is dynamic and continuous update is needed for thebusiness houses to transact in accordance with law. This apart, the tax issues on the InternationalTransactions are fairly complex. Advise on these legal positions, is one of the important services to berendered. There are many considerations such as - 

  • The payer of income on current account transactions is also cast with obligations to deduct tax at source.
  • The transactions between associated parties would have to be at Arms Length Price under the domestic Transfer Pricing Regulations.

On capital account transactions, the investments have to be cleared, if they do not fall within the sectoral cap prescribed for an industry. These clearances have to be obtained. Here also many considerations would have to be weighed -  

  • Whether the investment is in to Listed company and if so, whether is it by way of Preferential Allotment? Whether the investment would trigger the takeover code of the Securities and Exchange Board of India (SEBI)
  • Whether the Open offer would have to be made and if so, what would be the price? The strategies would have to be developed.
  • Documentation for Joint Venture, Shareholder's Agreements etc
  • Documentation

    The needs of the business would be manifold when it comes to legal documentation. Many business transactions need to have proper documentations to avoid any future problems. Such examples:

  • Production Outsourcing - Including impact on Excise and Sales Tax laws
  • Marketing Relationship - Tax Issues, Civil Obligations, After Sales Service etc
  • Overseas Commission Agent - Issues on TDS, Whether agent would comprise Permanent Establishment in that Country, triggering additional tax liability
  • Collateral Arrangements
  • Creation of Trusts - As Special Purpose Vehicles
  • Dispute Resolutions and Settlements
  • Non-compete Agreements
  • Joint Venture Documentation

Mergers and Acquisitions (M&A)

The restructuring exercises are significant in planning corporate affairs. M&A have been provided Tax neutrality in the hands of shareholders and the company. However, these are not without issues from the Company law and Income Tax law. Starting from the definition of what is 'Amalgamation' or 'De-Merger', the issues are complex and these considerations have to be weighed, to get the benefit of tax neutrality or carry forward of losses. It includes, strategizing the nature of restructuring from legal, commercial and shareholder perspective, valuation of business of the entities involved, fixing of swap ratio, drawing up scheme of arrangement, clearance from Registrar of Companies, Clearance from the High Court etc.