Case Studies



Gst Refund For Services Exports

GST Refund for Services Exports


Filing of refund application under GST Laws of Multinational Companies who don’t have required expertise to take care of cumbersome procedures involved.

About the Client

A Multinational company, who is engaged in export of services with payment of IGST or export of services without payment of IGST under Letter of Undertaking (LUT), can eligible for refund of IGST paid or accumulated ITC due to non- payment of IGST respectively.

Problem Statement:

Multinational companies, whose presence over various countries require expertise to handle cumbersome procedures involved in filing of GST refund application, preparation of necessary documentation as required by the concerned authority, representation before authorities and continuous follow up the authorities to grant refund claim.
Due to blockage of amount in accumulated ITC or with the government it would affect working capital requirements adversely there by interest on borrowing might be increased.
Further filing of Refund application is time consuming activity and involves lot of paper work which effects the regular day to day operations of business.

Methodology:

Filing of Refund application involves following procedures:

  • Filing of online refund application.
  • Preparation of necessary pre- documentation like annexure-A as required by law.
  • Reconciliation between ITC claimed and ITC reflecting in GSTR-2A which involves identification of missed credit.
  • Manual submission of documents to concerned authority after filing of refund application.
  • Preparation and submission of documents as required by the authorities.
  • Representation before authorities.
  • Continuous follow up the authorities to grant refund claim
  • All necessary procedures in relation to refund claim.

Results

With the assistance of APT Team, the client has filed the refund application, handled all cumbersome procedures and successfully received refund claimed without any effect on regular day to day operations of the business and results into effective utilization of time and resources with out recruiting any additional Employees.
And with the consistent support of APT Team to get refund from government, client was able to cope up their working capital requirements and resulted in saving of interest on borrowings due to early receipt of refund aids the successful in achieving a cost reduction.
The convenience in working with APT Team is that client has to pay professional fee only after the refund amount is successfully credited to his bank account.

Setting up off-shore office in India seamlessly

[Case Study] Setting up off-shore office in India seamlessly

Problem

How can a Multinational firm with strong presence in US/UK/Australia etc. market set up their off- shore office in India without any hurdles, resulting in significant reduction of cost.

Introduction:

As business realities change, a number of companies are adopting strategies to Off-shore to India & help control costs, stay ahead of the competition, and offer innovative solutions without compromising on quality. India has become a global hub for off-shore back-office services. India has gained global confidence with major players opting to off-shore to India because they are assured of gaining access to quality results, superior talent, low costs, and fast turnaround times. Our firm, APT AND CO. LLP provides all services to enter into India and all supporting statutory compliances in India. We have handled so many multinational group structures and for better understanding we have given the below one of our client as a case study.

About Client:

A Multinational Company (X, UK) head quartered in London and it is into operations of Consulting and Talent Acquisition solutions. The company has an excellent reputation for recruitment delivery within the following verticals:

  • Financial Services
  • Information Technology
  • IT Enabled Services
  • Media and Entertainment
  • Telecom
  • FMCG
  • Health Care and
  • Pharmaceutical

Its Indian subsidiary (Y Private Limited) is engaged in the business of providing Recruitment Process Outsourcing (RPO) Services and other solution designed services to support RPO. It also provides end-to-end Consulting and Talent Acquisition solutions.

Methodology:

One of the first and most important issues for a multinational considering doing business in India is ownership structure.

What type of Business Structure should we use?

There is no one correct answer to which type of Business we should follow. It is all dependent on business objectives, needs, industry the company into and the nature of business.

The following are the options available to establish a company or entity in India:

  • 1. Private Company
  • 2. Public Company
  • 3. Branch Office
  • 4. Limited Liability Partnership (LLP)
  • 5. Liaison Office
  • 6. Project Office

In Our Case Study,

The nature of Business of Multinational Company (X, UK) and for their requirement. Our APT team has done thorough analysis of Industry and pros and causes of operations in India. We have advised to incorporate as Private Limited company as subsidiary of Multinational group which was incorporated on 26/11/2007.

Outcome:

We APT and CO. LLP managed all Compliances for establishing subsidiary in India like Company Incorporation, RBI approvals, registration under various acts, GST Refunds & Appeals, licences under respective jurisdictions etc. With the advice from APT team, the company was also able to reduce its cost significantly and increase its profit also significantly. By setting up subsidiary in India it can also reduce the cost by taking advantage of relatively cheap resources in terms of low cost with efficiency like people and raw materials etc. We work closely with our clients as an extension of their team to add real impact to their top line and bottom line. APT and CO. LLP has successfully managed to deliver complex project seamlessly with their highly experienced team.