Page 20 - DCOM308_DCOM502_INDIRECT_TAX_LAWS

Unit 1: Introduction to Indirect Taxes

15. India has a well-developed ....................................with clearly demarcated authority between Notes
Central and State Governments and local bodies.

Did u know? Sales tax is levied on the sale of movable goods. Most of the Indian States have
replaced Sales tax with a new Value Added Tax (VAT) from April 01, 2005.

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Case Study Indirect Tax case study

he client is a leading technology company, which provides innovative solutions to
its clients. It is a strategic partner, delivering a wide range of services including all
Tthe required stages which its customers need: design, implementation and
commissioning of technology.

Approach
In January 2007 Romania became a Member State of the European Union. As a result, both
the Romanian authorities and business had to apply the complex rules on VAT and customs
which exist within the EU, and to introduce the IT systems which EU law requires. KPMG
helped this company adapt its IT applications to enable management to comply with the
new reporting requirements relating to VAT and customs. The client wanted advisors
who could:
 assess which systems, processes and procedures were relevant to the provision of
VAT and customs returns by the company

 determine how IT systems could be adapted to comply with the new rules, and
 make the necessary changes to IT applications and test them.
Result
KPMG’s Tax practice was chosen because the client was attracted by:

 our vision of the appropriate way to achieve the deliverables
 our ability to mobilize rapidly a strong multi-disciplinary team (IT Advisory and
Indirect Tax Advisory)

 our progressive use of technology to aid implementation.
Overall, the client was convinced that it could form an effective working relationship
with KPMG.

Contd....

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