Information technology (IT) and IT enabled services (ITeS)

Information technology (IT) and IT enabled services (ITeS)

Our service offerings for the IT and ITES industry

India is regarded as the back office of the world owing mainly to its IT and ITES industry. The sector in India grew at a Compound Annual Growth rate (CAGR) of 15 per cent over 2010-15, which is 3-4 times higher than the global IT-ITES spend, and is estimated to expand at a CAGR of 9.5 per cent to US$ 300 bn by 2020.  India is also the world's largest sourcing destination for the information technology (IT) industry, accounting for approximately 67 per cent of the US$ 124-130 bn market.

Opportunities and Challenges:

The changing economic and business conditions, rapid technological innovation, proliferation of the internet and globalization are creating an increasingly competitive environment. The role of technology has evolved from supporting corporations to transforming them. Global companies are increasingly turning to offshore technology service providers in order to meet their need for high quality and cost competitive technology solutions.

We understand that being in the IT and ITES industry, your company can encounter a wide variety of risks and challenges in their endeavor to create and maintain a seamless, successful, sustainable and scalable business. Some of the challenges faced include:

  • Ability to create and maintain a truly world class proven global delivery model which would allow your organization to provide services to customers on a best shore basis. This would require round the clock execution capabilities across multiple time zones, access to a large pool of highly skilled technology professionals and a knowledge management system to reuse solutions where appropriate
  • Develop and expand a strong, comprehensive, best in class end to end solutions and service offerings in order help your clients gain market differentiation or competitive advantage and thus capture a greater share of your client’s technology budgets
  • Ability to scale when the opportunity arises. This would require constant investment in infrastructure and rapidly recruit, train and deploy new professionals
  • Manage revenue and expenses during economic downturn, enhance your organization’s capacity to withstand pricing pressures, commoditization of services and decreased utilization rates
  • Manage exchange rate volatility and counter party risk in treasury operations
  • Expand your client list across business verticals to reduce over dependency and risk of losing substantial market share
  • Maintain superior and sophisticated project management methodology in line with global quality standards and ensure timely, consistent and accurate execution to achieve highest client satisfaction
  • Ensuring successful integration of inorganic growth opportunities that your organization may undertake from time to time across geographies

How we can help

Some of the key services being offered to this industry include:

  • Internal and management audits
  • Enterprise risk management (ERM)
  • Information system audits
  • Corporate advisory
  • Financial due diligence and structuring services
  • Tax and regulatory services

Advantage RSM:

  • RSM in India is consistently ranked amongst India’s top six accounting and consulting groups and globally RSM is the seventh largest audit, tax and consulting network
  • To meet our clients’ challenges, our IT and ITES practice teams have honed the means and resources to assist both established and emerging enterprises alike to succeed in dynamic markets
  • RSM in India caters to some of the leading IT and ITES companies having global presence across the US, UK and South East Asia
  • Our professionals have the necessary vision, experience, industry insights and innovative approaches to provide clear and practical advice to companies in this sector to help them navigate in markets that are rapidly consolidating
  • Extensive experience in advisory, taxation and accounting matters across various functions, sectors and geographies
  • Multi-disciplinary team of professionals comprising of Chartered Accountants, MBAs, Engineers, Company Secretaries, CISA / DISA, Cost Accountants and Law graduates

Whitepaper - GIFT City - International Financial Services Centre - Fiscal Incentives

28 September 2022
The Gujarat International Finance Tec-City ("GIFT City") is the first and only International Financial Services Centre (“IFSC”) currently operational in India and was operationalised by the Government in 2015. GIFT City is developed as a planned global financial and IT Services hub.

Salary Income - Certain Tax and Legal Aspects 2022

27 September 2022
The phenomenal growth of the Indian economy has resulted in a large number of salaried income tax filers. In India, we are estimated to have 8.50 crore tax-filers and the salaried employees and managerial personnel constitute the largest segment out of the same.

Research Publication: Accounting Implications of Rupee Devaluation, Inflation and Current Geo-Political Scenario

27 September 2022
The current geo-political scenario across the world has given rise to disruption in global supply chain, rise/volatility in prices of crude oil and several commodities, disruption in capital markets, and foreign exchange volatility and so on. Several countries around the world are facing economic crisis and/or recessionary trend.

Research Publication: Accounting Implications of Rupee Devaluation, Inflation and Current Geo-Political Scenario

27 September 2022
The current geo-political scenario across the world has given rise to disruption in global supply chain, rise/volatility in prices of crude oil and several commodities, disruption in capital markets, and foreign exchange volatility and so on. Several countries around the world are facing economic crisis and/or recessionary trend.

Highlights of Recent Key Changes in Overseas Investment Rules Regulations 2022

26 September 2022
The Government with the aim of enhancing the 'ease of doing business' and simplifying the existing framework for overseas investment by persons resident in India to cover wider economic activity and significantly reduce the need for seeking specific approvals has issued new overseas investment rules and regulations.

Karnataka High Court Rules - No TDS on reimbursement of seconded employees’ salary and directs Revenue to issue Nil TDS certificate

26 September 2022
Secondment of employees of foreign entity to Indian subsidiaries has been followed consistently as a general practise to support the Indian operations of the multinational enterprises. The taxability of secondment arrangements and corresponding payments have been subject to judicious examination under direct and indirect tax law over the past many years.

47th GST Council Meeting's Outcome

26 September 2022
The GST Council headed by Finance Minister conducted its 47th meeting on 28 June 2022 and 29 June 2022 in Chandigarh.

CBDT Extends Safe Harbour Rules to AY 2022-23

26 September 2022
On 17 June 2022, Central Board of Direct Taxes (‘CBDT’) issued Notification No. 66 /2022/F. No. 370142/26/2022-TPL. Vide this Notification, the CBDT has extended the Safe Harbour Rules (‘SHR’) to Assessment Year (‘AY’) 2022-23 relevant to the previous year 2021-22. 

CBDT Notifies Books and Records to be maintained by Charitable Trusts and Institutions

26 September 2022
The Finance Act, 2022 had amended Section 12A(1)(b) and tenth proviso to Section 10(23C) of the IT Act so as to mandatorily provide for maintaining books of account and other documents in a prescribed form and manner and at a prescribed place where the total income of certain Trust or Institution, without giving effect to the provisions of Section 10(23C) or sectio

Summary of Recently notified Changes in GST Rates

26 September 2022
In accordance with the recommendations made by the GST Council in its 47th meeting, Central Board of Indirect Taxes and Customs (CBIC) has given effect to several changes in GST rates applicable to supply of various goods/services. All rate changes would be made effective from 18 July 2022.  

Mandatory requirement for Electronic Furnishing of Form 10F in case of Foreign Remittance

26 September 2022
In order to claim benefit of any Tax treaty in respect of any income earned in India, a non-resident is required to furnish certain details in Form 10F alongwith the Tax Residency Certificate (TRC), as per Section 90(5) of the Income Tax Act, 1961 read with Rule 21AB of the Income Tax Rules, 1962.

Summary of recent Circulars issued under GST

26 September 2022
In accordance with the recommendations made by the GST Council in its 47th meeting, Central Board of Indirect Taxes and Customs has issued several clarificatory circulars on prevalent issues under GST. The gist of the said circulars is summarized in the Newsflash.  

Summary of GST Circulars clarifying GST applicability on Liquidated damages, Notice pay recovery etc. and Clarifications on several rate related aspects

26 September 2022
The Central Board of Indirect Taxes and Customs has issued circulars dated 3 August 2022 clarifying applicability of GST on payments in the nature of liquidated damages, notice pay recovery from employees, cancellation charges, etc. and several taxability and rate related aspects as well.  

Turnover exemption limit for E-invoicing under GST reduced from Rs. 20 crores to Rs. 10 crores effective from 1 October 2022

26 September 2022
The Government has further slashed the existing turnover limit for availing exemption from E-invoicing from Rs. 20 crores to Rs. 10 crores and the effective date notified for the said change is 1 October 2022. Thus, all taxpayers whose annual aggregate turnover exceeds Rs.

Supreme Court rules that gifting of freebies by Pharmaceutical Companies to medical practitioners is not allowable expenditure under the Income Tax Act, 1961

12 August 2022
Distribution of incentives (i.e. freebies) by pharmaceutical and allied health sectors industries to doctors, medical practitioners etc. and its allowability of claim as business expenditure in the light of Explanation 1 to section 37(1) of the Income-tax Act, 1961 (‘the Act’) has been one of most litigated issue.

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