Background: This client was in the business of providing transport as well as warehousing services to its customers. It had to incur a lot of administrative as well as Capex spend to serve its clients. We were called in to examine whether it was availing the tax benefit on all it spends.
What We Did: We listed all such expenses were tax credit could have been taken such as advertising, sponsorship, admin, office and Capex expenses.
Results: We found that most of the costs like office and admin were incurred by the employees and was claimed by them as reimbursement. Also, these bills were in their name rather than business name. We quantified the impact of this, and we concluded that company had missed out of credit of 0.3 Million. Going forward, our client made compulsory to take all the invoices in the name of the business to take credit.
Another thing we found that the company did not claim tax credit available on the purchase of fixed assets. Fortunately, we were able to claim this credit. This saved company close to INR 0.7 million