TAXATION & COMPLIANCE IN INDIA

We deliver compliant, structured taxation and regulatory support, enabling foreign companies to manage tax risks, meet statutory obligations, and operate confidently in India.

Focus on Growth—We Manage Taxation & Compliance in India

M+V Altios provides end-to-end Taxation & Compliance services designed specifically for foreign companies entering or expanding in India. We ensure complete transparency, accuracy, and regulatory compliance so you stay fully in control of your India operations.

/Is our India tax setup compliant?

M+V Altios assesses your structure against the new Income-tax Act and GST updates to ensure full compliance.

/ Are GST & TDS risks under control?

M+V Altios manages GST filings and updated TDS rules to prevent penalties and cash-flow disruptions.

/Is transfer pricing audit-ready?

M+V Altios aligns pricing and documentation with latest transfer pricing regulations to reduce audit risk.

Taxation & Compliance in India — Updated for New Tax Regime

India’s tax landscape has undergone significant reforms in recent years, including a modernised income tax framework, a streamlined indirect tax system (GST 2.0), and revised compliance rules. These changes are designed to simplify compliance, provide clarity on tax obligations, and align India’s tax regime with global business practices.

Direct & Indirect Tax Management

We manage your India direct and indirect taxes, ensuring compliance with the updated income tax laws and GST 2.0 framework. India has introduced a new Income-tax Act (effective FY 2026–27) to modernise and simplify direct tax compliance and reporting, replacing the old 1961 Act. This shift aims to reduce litigation and make the tax system more predictable for businesses.

GST, TDS & Withholding Tax

Under GST 2.0, India’s indirect tax system has been rationalised into simpler slabs and more predictable rules to reduce compliance volumes and disputes.
We ensure your business meets:

GST registrations, returns, classifications, and reconciliations
TDS and withholding tax requirements under updated rules, including revised TDS/TCS thresholds for various payments, helping reduce compliance burdens on routine transactions.

Transfer Pricing

India continues to strengthen its transfer pricing regime, including updated safe harbour provisions and documentation requirements. M+V Altio s support foreign companies with transfer pricing benchmarking, documentation, and compliance, reducing audit risk and aligning with OECD and Indian regulatory expectations.

Taxation FAQs for Companies Operating in India

Clear, practical answers to the most common questions on share capital, taxation, GST, repatriation, and compliance designed to help foreign and Indian companies navigate India’s financial and regulatory framework with confidence.

What is authorized share capital?

Authorized share capital is the maximum amount of share capital a company is permitted to issue to shareholders, as defined in its Memorandum of Association.

What is issued and paid-up share capital?

Issued capital: The portion of authorized capital actually allotted to shareholders.

Paid-up capital: The amount shareholders have actually paid for the shares issued to them.

How do foreign companies determine capital contribution for India?

Capital contribution can be made in the form of equity, preference shares, or debentures under Foreign Direct Investment (FDI) guidelines. Contributions must comply with the Companies Act and FEMA regulations regarding remittances, reporting, and sectoral limits. The quantum of capital is typically guided by the company’s business plan and should be sufficient to meet the initial operating and establishment expenses.

Can loan finance India operations? Are they treated as capital?

Yes, loans can be used to finance operations. However, in the balance sheet, loans are shown as liabilities (short-term or long-term borrowings), not as capital. Details such as lender type, security, maturity, and defaults must be disclosed as per Schedule III of the Companies Act.

What is India’s corporate tax rate and withholding tax structure?

Corporate tax rates range from 26% to 34.94%, depending on turnover, income, and residency status.

Withholding tax (TDS) applies on dividends, interest, royalties, and technical services, with rates governed by domestic law and Double Taxation Avoidance Agreements (DTAAs).

How is GST structured in India?

India follows a dual GST system:

CGST + SGST for intra-state transactions

IGST for inter-state transactions

As of September 2025, the GST framework in India primarily operates with two tax slabs—5% and 18%. The system simplifies compliance, facilitates Input Tax Credit (ITC), and prevents cascading of taxes. Additionally, a demerit rate of 40% applies to sin and luxury goods.

What are the ways to repatriate profits from India?

Profits may be repatriated through:

Dividends

Share buybacks

Capital reduction

Royalties or technical service fees

These must comply with FEMA, tax obligations (withholding taxes, tax return filing), and documentation requirements (Form 15CA/CB, FLA returns). DTAAs may reduce tax rates or allow credit in the home country.

Can my Indian entity follow the reporting period of our global headquarters?

Indian companies must adopt the fiscal year (April–March). However, with regulatory approval, a different reporting period may be allowed for reporting under local companies Act, provided it is disclosed in the financial statements.

What accounting software is commonly used in India? Can we use our own?

Popular options include Tally, QuickBooks, SAP, and Zoho Books. Companies may use their own accounting package as long as it complies with Indian accounting standards and integrates with GST/e-filing requirements.

How is transfer pricing regulated in India?

Transactions between related parties must be conducted at arm’s length, as per the Income Tax Act and OECD guidelines. Companies must maintain proper documentation and disclosures. Non-compliance may lead to penalties and income adjustments.