Manufacturing

Our service offerings for the Manufacturing industry

India is fast emerging as a global manufacturing hub, with all the requisite skills in product, process and capital engineering on account of its long manufacturing history and continuous upgradation of its higher education system. The Make in India initiative of the Indian government has further aided the growth of this industry with the Government receiving investment proposals of over US$ 16.56 bn in the recent past through this initiative.

India's cheap, skilled manpower is attracting a number of companies, spanning diverse industries, making India a global manufacturing powerhouse. India with its vast design skills has attracted a lot of outsourcing technological orders.

India's manufacturing sector is expected to touch US$ 1 trillion by 2025 and reach about 30 per cent of the country’s GDP.

Opportunities and Challenges:

The manufacturing sector is large and diverse, but most sector players face similar risks – increased costs for oil, natural gas, steel and copper are squeezing margins, unless offset by pricing and surcharge increases. Since clients are reluctant to invest in new equipments, the aftermarket service gains greater significance. To strengthen core product lines or widen geographical reach, companies are seeking acquisition targets, while others are looking to divest underperforming units. State and central taxes, often managed across multiple locations, are increasingly complex and under continuous review. Calls for corporate governance and accountability have driven new regulations around internal controls and management certifications. Further, manufacturing companies always strive to figure out how to get the most out of their Information Technology and Human Resource Capital Investments.

While the challenges are many, the industry also offers significant growth opportunities considering the future outlook.

How we can help:

We at RSM provide a wide range of services to the various large Indian groups, multi-national companies and SME players across various verticals including petrochemicals, textile, engineering, metals, industrial equipments and chemicals. The key services offered by RSM to the manufacturing sector include:

  • Internal and management audits (including compliance audits)
  • Enterprise risk management
  • Internal control framework – designing and testing of controls
  • International and Indian tax
  • Techno-commercial concurrent audits
  • Corporate advisory and structuring covering Tax / Foreign Exchange regulations, Double Taxation Avoidance Agreements (DTAA) regulations, etc.
  • Advisory & assistance in outbound and inbound Foreign Direct Investments from and into India, formation / re-structuring of Joint Ventures, Mergers & Acquisitions, etc.
  • Operations consulting covering ISO, Six Sigma, TQM, lean management systems, JIT approach, Inventory management tools, etc.
  • Preparation of Standard Operations Manuals (SOPs) defining pre-agreed systems and procedures, etc. and assisting in their implementation.
  • Financial process outsourcing
  • Company law compliance
  • Assistance in preparing commercial documentation
  • Executive search and HR solutions

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
  • Extensive experience in advisory, taxation and accounting matters across various sectors. Our clients include:
    • One of the largest private sector manufacturer in India
    • One of the largest non-ferrous metals company in India
    • One of the largest luggage brands across Asia
    • One of the largest branded toy manufacturers in India
    • One of the largest terry towel producers in Asia
    • One of the largest SAW Pipes companies in Asia
    • One of the largest central air-conditioning and commercial refrigeration companies in India
  • Use of technical experts – civil, mechanical and electrical engineers
  • Use of Risk Based Audit (RBA) as well as Transaction Based Audit (TBA) approaches
  • Multi-disciplinary team of professionals comprising of Chartered Accountants, Management Graduates, Engineers, Company Secretaries, CISA / DISA, Cost Accountants and Law graduates

 

CBDT Extends Safe Harbour Rules to Assessment Year 2022-23

1 July 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.   

Guidelines for removal of difficulties under section 194R of the Income Tax Act, 1961

1 July 2022
Finance Act 2022 inserted a new section 194R of the Income Tax Act, 1961 (‘the Act’), which mandates a person, who is responsible for providing any benefit or perquisite (whether convertible into money or not) to an Indian resident, to deduct tax at source at the rate of 10% of the value of such benefit or perquisite.

Extension of Due-date for filing of return in Form GSTR 3B for the month of April 2022 till 24 May 2022

1 July 2022
In view of persistent technical glitches faced by GSTN leading to non-updation of GSTR 2B report with supplier filings pertaining to April 2022 for several taxpayers, Central Board of Indirect Taxes and Customs (CBIC) vide Central Tax Notification No. 05/2022 dated 17 May 2022 has extended the due-date for filing of return in Form GSTR 3B till 24 May 2022

MCA issues Companies (Indian Accounting Standards) Amendment Rules,2022 to be effective from 1 April 2022

1 July 2022
The Ministry of Corporate Affairs (“MCA”) notified Companies (Indian Accounting Standards) Amendment Rules, 2022 (“Rules”) vide Notification dated 23 March 2022. These Rules shall come into effect from 1 April 2022.

Jaipur Tribunal Rules that Mere reflection of higher income in Form 26AS not a reason to make additions to the returned income offered by the assesse

1 July 2022
Recently, the Hon’ble Income-tax Appellate Tribunal (‘ITAT’) bench - Jaipur in the case of M/s Shri Jeen Mata Buildcon Pvt. Ltd vs. the ITO has passed a verdict on 8 March 2022 in favour of the assessee and deleted the addition made based on mere reflection of higher income in Form 26AS of the assessee.  

Jaipur Tribunal Rules that Mere reflection of higher income in Form 26AS not a reason to make additions to the returned income offered by the assesse

1 July 2022
Recently, the Hon’ble Income-tax Appellate Tribunal (‘ITAT’) bench - Jaipur in the case of M/s Shri Jeen Mata Buildcon Pvt. Ltd vs. the ITO has passed a verdict on 8 March 2022 in favour of the assessee and deleted the addition made based on mere reflection of higher income in Form 26AS of the assessee.  

Ruling pronounced by National Company Law Tribunal in case of Panasonic Group –GAAR not to interfere with the rights of the taxpayers to arrange its affairs tax efficiently

1 July 2022
Recently, Chandigarh Bench of National Company Law Tribunal (‘NCLT’) approved the scheme of arrangement (‘Scheme’) between Panasonic Group Companies under section 230-232 of the Companies Act, 2013 which provided for the amalgamation of the entities based on commercial rationale and factors like reduction in operating and marketing cost, economies in procurement, i

Brief Note on Section 194R: TDS on benefit of perquisite in respect of business or profession

1 July 2022
The Finance Act 2022 has introduced section 194R of the Income Tax Act, 1961 (‘the Act’), which provides for deduction of tax (‘TDS') by any person who is providing benefit or perquisite (whether convertible into money or not) to an Indian resident arising from carrying out a business or profession carried out by such resident person.

Supreme Court validates the reassessment notices issued under unamended section 148 of the Income Tax Act between 01 April 2021 to 30 June 2021

1 July 2022
Finance Act 2021 revamped the entire reassessment proceedings with effect from 01 April 2021, wherein the pre-existing regime was substituted with the corresponding new regime along with introduction of new section 148A of the Income Tax Act, 1961 (‘the Act’) and changes in time limitation for issuance of notices.  

Mohit Minerals Private Limited Supreme Court Ruling - No levy of IGST on ocean freight in case of import of goods on CIF basis

1 July 2022
In view of careful interpretation and analysis of the fundamentals of Constitution, the Supreme Court verdict in the case of M/s. Mohit Minerals Pvt Ltd has clearly etched its spot as one of the most significant rulings of the recent times.

Key Amendments passed in the Finance Act 2022 vis-s-vis Original Finance Bill 2022

1 July 2022
The Finance Bill 2022 was introduced in the Lok Sabha on 1st February 2022. On 24th March 2022, the Finance Minister, Nirmala Sitharaman, proposed about 39 changes to be made in the Bill and the same was passed by the Lok Sabha on March 25, 2022 incorporating such proposed amendments.

Suo motu Disallowance u/s 40(a)(i) or 40(a)(ia) does not exonerate the assesse from the liability u/s 201 of the IT Act

30 June 2022
As per the provisions of section 40(a)(i)(a) of the Income Tax Act, 1961 (‘IT Act’), if an assessee who pays a sum of money by way of interest, royalty, fees for technical services or any other sum to a person outside India or within India, fails to deduct and/or deposit TDS as per the provisions of Chapter XVII-B with the government, the amount so paid will be dis

Webinar 11th March

10 March 2022
E-Workshop - Audit for FY 2021-22 - Schedule III templates for additional requirements and disclosures including ICAI Guidance   You are requested to attend the Virtual Workshop on "Schedule III to the Companies Act, 2013 and CARO 2020: Preparing for the New Disclosure Requirements".  

Applicability of E-invoicing for a person with a turnover of Rs.20 crores or above w.e.f. 1 April 2022

1 March 2022
E-invoicing provisions under GST had been made effective from 1 October 2020 for persons whose aggregate annual turnover exceeds Rs.500 crores. The exemption limit was reduced from Rs.500 crores to Rs.100 crores with effect from 1 January 2021 and further brought down to Rs.50 crores with effect from 1 April 2021.

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