Tax Due Diligence (Direct and Indirect Tax Exposure)
Tax due diligence is a critical step in mergers, acquisitions, investments, and corporate restructuring, helping stakeholders assess potential direct and indirect tax exposures. Our service provides a detailed review of tax positions, compliance history, and potential liabilities to support informed decision-making and mitigate risks.
We analyze both direct taxes (such as income tax, TDS, and transfer pricing obligations) and indirect taxes (such as GST, customs, and other applicable levies). Our comprehensive approach ensures that buyers, sellers, and investors understand tax implications before completing transactions.
About This Service
For buy-side transactions, we review historical tax compliance, ongoing litigations, and potential exposures to identify risks that could affect valuation or post-acquisition obligations.
For sell-side clients, we assess the company’s tax positions to ensure transparency, resolve outstanding issues, and highlight areas of strength to attract investors or buyers.
We provide advisory on structuring transactions to optimize tax outcomes, minimize liabilities, and comply with statutory requirements. This includes reviewing tax provisions, GST reconciliations, TDS, and other indirect tax matters.
Our service also includes preparation of detailed tax due diligence reports outlining exposures, contingencies, and recommendations. These reports serve as critical inputs for negotiations, risk mitigation, and regulatory compliance during transactions.
Key Features / Scope of Work
- Tax due diligence covering direct taxes (income tax, TDS, transfer pricing)
- Review of indirect tax exposures, including GST, customs, and other levies
- Assessment of historical compliance and potential contingencies
- Advisory on transaction structuring to optimize tax outcomes
- Identification of risks and mitigation strategies for buyers and sellers
- Preparation of detailed tax due diligence reports with findings and recommendations
- Support for negotiations, risk assessment, and regulatory compliance
- Ensuring transparency and informed decision-making for all stakeholders
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