Business &
Share Valuation

i. Tangible Asset Valuations

We assist our clients in evaluating, identifying, and valuing tangibles and intangibles for the purpose of purchase price allocation (PPA) and also advise clients on accounting impacts before deal execution by carrying out pre-deal PPAs.

ii. Intangible asset valuations

We value and apprize intellectual property assets like patents, copyrights, trademarks, trade names or brands, research and development assets, products in R&D stages, etc. We review license and franchise agreements from a valuation perspective. We also value and evaluate intangible assets like contractual and non-contractual customer relationships, core deposit intangibles, customer lists, and non-compete agreements.

iii. Share valuation

We offer independent advice to boards of directors to help them determine the right price to pay or accept for a business. We help evaluate shareholder value for stakeholders.

iv. Business valuation

Business Valuation for a broad range of industries including financial and professional services, technology, manufacturing, hospitality, etc.

Valuation Issues

The use of valuation of an asset/share/business in a specific transaction shall have a multi-fold effect impacting various stakeholders at various levels. For example parties to the transaction, the income tax department, RBI & many other major stakeholders.

Services

In-depth analysis of different variables in the valuation study.
Expert-level solutions to adhere to various regulatory compliance.
Certifications as per different regulatory authorities.

Accounts Outsourcing

Accounting Outsourcing Services in India
A refinance allows you to take out new personal loans that pay off your current mortgage. Although you are then obligated to make payments on the new top-up card loan, your costs typically are lower after refinancing.
In today’s scenario of globalization and technology convergence, the process of doing business has been redefined. Outsourcing various processes makes a lot of business sense. Most businesses and large companies are outsourcing their accounting processes for better management of their finances, and time etc.
These services are structured to suit an individual client’s needs and requirements. Some of the accounts outsourcing services offered by, Accounting Outsourcing Company are as under:
Accounting outsourcing companies in India
Book keeping and General Accounting Service
The service involves preparing and maintaining day-to-day bookkeeping and monthly or quarterly management accounts. These books are prepared as per the US GAAP accounting standards and can also be made as per specific client instructions.
Preparation of Financial Statements
The service involves preparing a company’s annual accounts and schedules for the statutory annual audit.

Payroll

Preparation of the monthly payroll based on the inputs received organization. The same would include all statutory and other relevant deductions as required.

Ensure deductions of all relevant amounts and as per applicable statutory laws like Income Tax, provident Fund Professional Tax etc.

Checking Form 16 for the Employees and file quarterly. returns for e-TDS with Income Tax authorities.

Deposit TDS & provide proof of deposit.

Ensure redressal of any issues.

Reconciliation of payments/statutory deductions etc. with books of accounts on a quarterly basis.

Tax Planning & Returns

The service involves helping the clients make necessary periodic income tax, sales tax, and other returns. It also includes helping the client make sound investment decisions and helping him avail of various rebates and deductions.

Cash Forecasting

The service involves analyzing the cash requirements of the business and making cash forecasts for planning the future.

Unveiling the Intricacies: Business and Share Valuation in Indirect Taxation

Valuation lies at the heart of any financial transaction, and in the realm of indirect taxation, it holds particular significance when it comes to business and share transactions. Accurate valuation is essential for determining the correct tax liability, ensuring fairness, and preventing potential revenue leakages. In this article, we delve into the complexities of business and share valuation in the context of indirect taxation, exploring its importance, challenges, and methods.

Understanding Business and Share Valuation in Indirect Taxation:

Business and share valuation involves assessing the worth of a business entity or its shares for various purposes, including taxation. In the realm of indirect taxation, this valuation is crucial to determine the value on which applicable taxes such as Goods and Services Tax (GST) or Value Added Tax (VAT) are levied. Accurate valuation ensures that the correct tax amount is paid and helps prevent underpayment or evasion.

Importance of Accurate Valuation:

Fair Taxation: Accurate valuation ensures that businesses are taxed fairly based on the actual value of the transaction, preventing tax evasion or underpayment.
Revenue Protection: Proper valuation safeguards government revenue by preventing undervaluation or manipulation of transaction values to reduce tax liability.
Transparency: Transparent valuation practices build trust between taxpayers and tax authorities, promoting compliance and a level playing field.

Challenges in Business and Share Valuation:

Subjectivity: Valuation involves subjective judgment and assumptions, making it vulnerable to interpretation differences.
Complex Transactions: Business valuations can be complex, especially in cases involving intangible assets, intellectual property, or unique business models.
Changing Dynamics: Economic fluctuations and changes in market conditions can impact the value of businesses and shares.

Methods of Business and Share Valuation:

Income Approach: This method estimates the value based on the expected future income generated by the business or shares.
Market Approach: It involves comparing the business or shares to similar entities that have been recently sold or valued.
Asset-Based Approach: This method calculates the value by summing up the net value of the business’s assets and subtracting liabilities.

Valuation in Mergers and Acquisitions (M&A)

Valuation plays a pivotal role in M&A transactions. Accurate valuation ensures that the purchase price accurately reflects the value of the target business or shares. This prevents overpayment and ensures a fair deal for both parties.

Valuation Challenges in Family Businesses

Family businesses often face unique challenges in valuation due to factors like emotional attachment, lack of market data, and informal financial reporting. Proper valuation methods must be employed to ensure accurate tax liability calculation.

Government Initiatives and Regulations

Governments often issue guidelines and regulations for business and share valuation to standardize practices and prevent manipulation. These regulations vary by jurisdiction and can impact the valuation process.

Conclusion:

Accurate business and share valuation in indirect taxation is a cornerstone of fairness, transparency, and revenue protection. While challenges like subjectivity and complexity exist, the proper application of valuation methods and adherence to regulations can mitigate these challenges. Valuation not only ensures that the right tax liability is paid but also fosters trust between taxpayers and tax authorities, contributing to a robust and equitable taxation system.

Business & Share Valuation