New India Tax Laws a Boon for Audit, Consulting Firms

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Jan. 19 – India’s massive overhaul of tax laws and corporate regulations will be a boon for audit and consulting firms serving the Indian market when the new laws are finally enforced.

India wants to adopt International Financial Reporting Standards (IFRS), Goods and Services Tax (GST), Direct Taxes Code and the new Companies Act soon. The India GST is slated for October this year while the IFRS and Direct Taxes Code will need to be followed by 2011.

Business Standard estimates the GST and IFRS alone can bring in about 20-30 percent more business for audit and consulting firms. India’s more than 7,000 listed companies will need help to adopt and maxmize the benefits of the IFRS by 2011.

In addition, the new GST in India will impact business supply chains – operations, sourcing, distribution and sourcing. Companies may need to rethink their operations to optimize the implications of the GST to allow easier market integration.

The Direct Tax Code in the meanwhile will hopefully improve efficiency and equity of the country’s tax system by enforcing moderate levels of taxation and expanding the tax base. Moreover, cutting down litigation risks for companies.

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