Direct Tax

Direct Tax at LKS

Our highly qualified and experienced team is recognised for our comprehensive and complete range of services. The bouquet of services for Direct Tax practice includes the following:

• Advise/Assistance on determining residential status; filing of advance ruling applications; and Mutual Agreement Procedures.
• Advising on eligibility of tax treaty benefits (DTAA).
• Advising on General Anti-Avoidance provisions (GAAR).
• Advising on tax implications of executed/proposed business transactions.
• Advisory on constitution of business connection being in the nature of ‘Significant Economic Presence’ on the (proposed) transaction/ business model.
• Appearing before Adjudicating, Review and Appellate Authorities (including Faceless Assessment/Appeal Centre), High Courts and Supreme Court.
• Assistance in representing for approvals, for claiming exemption/relief.
• Assistance in formulating a tax-efficient structure for investment funds and high net-worth individuals.
• Drafting appeals, stay applications, written submissions, compilations and miscellaneous applications, counter applications, rejoinders before Appellate Authorities and Courts.
• Drafting of rectification applications, review applications and reference applications before DRP.
• Drafting or vetting agreements from a tax perspective.
• Handholding during investigations.
• Preparation/review of annual tax computation and returns.
• Representations before Finance Ministry/CBDT.

Key focus areas

• Corporate Tax Advisory.
• International Tax Advisory.
• M&A Tax Support, including due diligence.
• Global Transfer Pricing Services, including Value Chain analysis, Benchmarking, Country-by-Country Reporting.
• Tax Litigation & Controversy, including advice on preferring constitutional remedies.
• Tax Audits & Investigations.
• Tax Compliance & Documentation.
• Taxation of investment funds and not-for-profit entities/trusts.
• Taxation for HNIs & non-resident Indians.
• Corporate Trainings.

Recent assignments

Our recent assignments, covering all our services under Direct Tax practice, include,

• Advised in structing one of the biggest aircraft leasing deals, covering multiple aspects like taxability of incentives, withholding of taxes, claim of expenses etc.
• Advised on structing and tax implications of different types of ESOP plans.
• Advising on Base Erosion and Profit Shifting rules in the international tax.
• Advising on Equalization Levy and Significant Economic Presence.
• Appeared before Special Bench of ITAT on allowability of tax treaty benefits for Dividend Distribution Tax to be paid on dividends distributed to non-resident shareholders.
• Assisted a real estate developer on transaction involving sale of real estate assets of USD 200 million.
• Assisted companies in power sector in filing representations before CBDT seeking clarifications on applicability of tax withholding provisions.
• Impact assessment of Apex Court decision on secondment of employees.
• Represented clients before various fora on re-assessment proceedings initiated consequent to Apex Court decision in Ashish Agarwal.
• Structuring incentive mechanisms - Section 194R of the Income Tax Act.
• Successfully challenged assessment order passed under Faceless Scheme before a High Court, resulting in huge additions for a business conglomerate.
• Successfully challenged post search assessment notices before a High Court: The Court laid down important principles for Assessing Officer to re-assess income pursuant to search operation.
• Successfully represented a high-profile client before a High Court in respect of prosecution proceedings initiated for non-filing of return of income.
• Successfully represented before ITAT for a client on a matter relating to categorization of winnings from unsold lottery tickets.