Direct Tax Assessment
Review of income tax returns, assessment orders, pending appeals, deferred tax positions, and carried-forward losses across applicable assessment years.
Specialised Tax Services
Tax Due Diligence
Practice01/06
Direct Tax Assessment.
Note01Refer — Scope
Income-tax returns, assessment orders, pending appeals, deferred tax, and carried-forward losses.
Index06 Practices
Areas of Review
Tax due diligence encompasses the full spectrum of a target's tax affairs—examining compliance history, open positions, pending disputes, and structural arrangements that shape transaction outcomes.
Indirect Tax Examination
Analysis of GST compliance, input tax credit eligibility, classification positions, and transition credits—along with legacy VAT, excise, and customs exposures.
Transfer Pricing Review
Evaluation of related-party transactions, benchmarking documentation, Form 3CEB filings, and potential adjustment risks under arm's length principles.
International Tax Analysis
Assessment of cross-border arrangements, treaty positions, withholding tax compliance, POEM considerations, and indirect transfer implications.
Litigation & Dispute Mapping
Cataloguing of ongoing tax proceedings, show-cause notices, appeals at various forums, and contingent liabilities requiring disclosure or provisioning.
Employee Tax Compliance
Review of TDS on salaries, ESOP taxation positions, perquisite valuations, and provident fund and social security compliance affecting workforce costs.
Transaction Clarity Through Rigorous Review
A methodical tax review illuminates the true tax position of a target entity—enabling informed decisions on pricing, deal structure, and risk allocation between parties.
- Systematic identification of tax exposures that may affect transaction economics
- Quantified risk matrices supporting informed pricing and negotiation discussions
- Clarity on positions requiring warranty coverage or specific indemnification provisions
- Assessment of tax attributes available for post-acquisition utilisation
- Structured insights for choosing between share purchases, asset deals, or slump sales
- Foundation for post-completion tax integration and compliance planning
Our Review Approach
Step 1
Scope Definition
Understanding the transaction structure, materiality thresholds, and specific areas of concern to design a focused and efficient review framework.
Step 1
Scope Definition
Understanding the transaction structure, materiality thresholds, and specific areas of concern to design a focused and efficient review framework.
Step 2
Information Gathering
Issuing comprehensive information requests and working with data rooms to collect tax returns, assessment records, notices, and correspondence systematically.
Step 2
Information Gathering
Issuing comprehensive information requests and working with data rooms to collect tax returns, assessment records, notices, and correspondence systematically.
Step 3
Detailed Analysis
Reviewing compliance positions, examining open assessments, evaluating tax litigation, and analysing structural arrangements across direct and indirect taxes.
Step 3
Detailed Analysis
Reviewing compliance positions, examining open assessments, evaluating tax litigation, and analysing structural arrangements across direct and indirect taxes.
Step 4
Management Discussion
Engaging with the target's finance and tax teams to clarify positions, understand historical context, and assess the basis for key tax treatments adopted.
Step 4
Management Discussion
Engaging with the target's finance and tax teams to clarify positions, understand historical context, and assess the basis for key tax treatments adopted.
Step 5
Risk Quantification
Developing exposure matrices that categorise identified issues by likelihood and magnitude—distinguishing certain liabilities from contingent risks.
Step 5
Risk Quantification
Developing exposure matrices that categorise identified issues by likelihood and magnitude—distinguishing certain liabilities from contingent risks.
Step 6
Report & Recommendations
Delivering a structured report with findings, quantified exposures, and practical recommendations for warranties, indemnities, and transaction considerations.
Step 6
Report & Recommendations
Delivering a structured report with findings, quantified exposures, and practical recommendations for warranties, indemnities, and transaction considerations.