Tax consultants or advisors who are experts in tax and its various aspects like tax law, planning and compliances serves the businesses and individuals with various useful services by staying updated on new tax and optimization.
In India, one of the largest economies in the world and one of the most prominent markets for start-ups and businesses, the role of these consultants is to act as saviours helping and guiding the companies to minimise their tax throughout the years and also prepare the tax returns. Don't assume that hiring a consultant is not an option only for the rich but for everyone who has a need.
While manufacturing, banking, steel, investment, retail, pharma, infrastructure, agriculture, engineering, and telecommunications are the top industries in India, finance is at the core of every industry and tax obligation is for everyone. Thus, every business we look around today needs a structure and understanding the system for handling money received from diverse sources and tax consultants are the practitioners who will lead to a successful process.
A tax consultant acts as a financial guru who backed with years of experience and the latest information on tax creates a suitable plan crafted according to a brand's needs. In the rapidly changing economic environment, with the changes that are happening in the financial environment, a need for tax consultant is there that has to be taken care of. In such a scenario to ensure that your business is fit to be able to survive the tough competition and inconsistent market.
Let's understand how a tax consultant can direct your business growth, further, how it can prevent your business from turbulence and frees you from the confusing and complex system of rules and deduction options especially in the Indian current situation:
Should one get a tax consultant to help them boost the brand's growth? Well, the professionals are trained with the law and accounts to help clients, whether they are individuals or businesses, to minimize the amount of taxes they will owe each year. They generally advise on topics of law and accounts and assist you with a range of services including:
There are various decisions that are part of working at an organisation. Some of which can lead to tax minimisation and some do not. With the help of tax consultant, you can be enabled with an expert and his decision making power of investments and various other things that can help you save money. They are aware of the options with tax deductions and helps in easily identifying the potential tax deductions in a year and advise you how to make strategic investments to avoid any tax liabilities.
In a busy schedule, one might lose track of the record of taxes. Being specified in what they do, a tax consultant alleviates the risk of tax disputes which arise if a person fails to pay any particular tax in the given time. Managing corporate tax is harder, given their nature of frequently changing. Knowing all the updates is a neck-breaking job which tax consultants do to help the corporate companies.
Tax laws have a lot of loopholes which can be ignored by a layman but tax consultants are very familiar with the things that one needs to do, and the loopholes that one can exploit to reduce the amount of tax. He ensures that each of his clients is following the legalities as he reviews records of the clients, makes adjustments and deductions followed by advice given to an efficient and better financial ability.
People think that hiring a tax consultant can be a costly affair and but it is the main cause of saving a lot of money if one invests in them. The tax policies are very technical and complex and can be confusing for laymen which are best outsourced to make the job easier and simpler since he understands the process with ease.
DIGITAL TAX STRATEGY: In the changing contours of the tax structures in India, digital tax is a key solution as everything has shifted from the physical world to the digital world. Contributing to the economy, tax is not an area today that has been left untouched by the technology transformation.
The new age of tax solutions by the consultant and other agencies include covering digital tax effectiveness, digital tax administration services, tax technology and tax big data, helps you identify your tax function's immediate challenges and develop an enhanced operating model strategy fit for the transformative age.
From a global taxation point of view, the digital enterprises like Google, Amazon, Facebook, etc. operate their business on virtual space making it difficult to bring them under the local tax radar, which is why the concept of the digital tax is used to maximise on revenue-based taxes. The Google tax or digital service tax (DST) is imposed by the source country on the revenue generated by global tech companies in such countries.
DATA AND ANALYTICS: In the digital world, one thing that will be underpinning for working for every organisation is data and analytics. While presently, the brands may already be using big data to track and improve customer activities and experience, in future they can be managing tax via the big data and leveraging it for better visibility of their tax obligations that will become a critical success factor as well.
From the government point of view, in 2019, Big Data Analytics efforts were deployed by the Indian tax department to report on the status of unaccounted income and wealth, both inside and outside India. With this step, India joined a group of developed countries such as Belgium, Canada, USA, UK and Australia which already use Big Data to keep a check on tax evasion.
While technology is constantly developing, it still not clear whether the data is being effectively trawled to reveal insights to bring non-filers to book.
RPA'S ROLE IN TAX: Based on metaphorical software robots or artificial intelligence workers, Robotic process automation is a form of business process automation technology or software used to create automation, or robots (bots) eventually configured to execute repetitive processes, such as submitting filings to tax authority web portals.
Robots assisting humans in operations is a reality. While it may sound futuristic, it is already helping tax processes to be performed in a quicker and more streamlined manner.
RPA is best suited to processes which are transactional and repetitive in nature, high in volume and time consuming, have low error rates or variations within the process, are well-documented, have decision-making processes that can be codified by rules, and use structured electronic data.
Today, there is a core need for understanding and embracing innovation to find more efficient ways to meet not only the ever-expanding needs of today, but also tackle tomorrow's challenges, and add value to the overall business success. This legal technology will save time and money, increase accuracy, and free up businesses' tax teams to focus on more important and revenue-generating activities.
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