Taxation Services by Sigma Solutions
Introduction
A mid-sized manufacturing company was facing significant challenges in managing tax compliance, frequent GST penalties, and inefficient corporate tax planning. Their internal finance team lacked the knowledge to optimize tax liabilities or handle audit preparedness, putting the company at legal and financial risk.
To address these pressing issues, the company approached Sigma Solutions for its professional taxation services, aiming to ensure compliance, reduce tax burden, and streamline audit processes.
Challenges Faced by the Company
1. GST Filings & Late Payment Penalties
- Frequent errors in:
- GSTR-1 and GSTR-3B
- Missed return deadlines
- Blocked Input Tax Credit (ITC) due to mismatches
- Result:
- Recurrent penalties and interest charges
2. Unstructured Tax Planning
- Paid excessive taxes due to:
- Lack of investment planning
- No utilization of available deductions or depreciation claims
- No strategy to:
- Minimize corporate income tax
3. Non-Compliance in Corporate Tax & TDS Filings
- Missed:
- TDS returns
- Income Tax Return (ITR) deadlines for multiple assessment years
- Risked:
- Scrutiny notices and legal proceedings
4. Audit Unpreparedness
- Unorganized:
- Financial records
- Supporting documents for audit trails
- Lacked:
- Timely filing of Form 3CD and tax audit reports
5. Confusion Across Tax Categories
- Unclear on:
- GST applicability on capital goods
- TDS rates for vendors
- Professional Tax obligations for employees
Solution Provided by Sigma Solutions
Sigma Solutions implemented a holistic taxation service strategy, covering GST return optimization, income tax planning, TDS compliance, audit readiness, and refund recovery.
Implementation Process
1. GST Return Filing & Credit Recovery
- Corrected:
- Historical GST returns
- Claimed blocked ITC by reconciling vendor data and e-invoices
- Set up:
- Automated return filing calendar
- Systemized GSTR-1, 3B, and GSTR-9 workflows
2. Corporate Tax Planning
- Designed:
- Investment declarations and depreciation strategy under Income Tax Act
- Structured:
- Advance tax schedules
- Deductions under Sections 80C, 35AD, and 10AA
3. ITR & TDS Compliance Setup
- Implemented:
- Quarterly TDS filings for salaries, contractors, and professional services
- Timely ITR filings (Form ITR-6)
- Ensured:
- TDS reconciliation and issuance of Form 16/16A
4. Tax Audit Readiness
- Organized:
- Ledger-wise audit files
- Supporting tax computation worksheets and balance sheet reconciliations
- Filed:
- Form 3CD with full compliance under tax audit provisions of Section 44AB
5. Advisory & Dispute Resolution
- Handled:
- Outstanding tax notices
- ITAT representation support where applicable
- Guided:
- Refund tracking for past overpaid taxes and blocked GST credits
Results Achieved
Metric | Outcome |
₹10 Lakhs Saved in Tax Liabilities | Through optimized corporate tax planning and ITC recovery |
100% GST Compliance | All returns filed accurately and on time |
Audit Readiness Improved by 80% | Organized record-keeping ensured smooth tax inspections |
No Delayed ITR or TDS Filings | Avoided penalties, late fees, and legal complications |
Successful Refund Claims Processed | Recovered blocked ITC and overpaid income tax efficiently |
Conclusion & Key Takeaways
Taxation is not just a legal necessity—it is a powerful financial tool when managed strategically.
With Sigma Solutions’ support, the company transformed its tax practices:
- Eliminated compliance risks
- Recovered blocked credits
- Saved significantly on taxes
- Built a future-ready tax system
Key Takeaways:
- Timely tax planning = Reduced liabilities
- GST reconciliation & automation prevent penalties
- Proper recordkeeping ensures audit preparedness
- Partnering with experts avoids costly financial missteps
Related Services by Sigma Solutions
- GST Return Filing & Reconciliation Services
- Corporate Tax & Income Tax Advisory
- TDS Compliance & Payroll Tax Management
- Audit Support & Financial Reporting
- Business Expansion & Financial Structuring
Other Case Studies
Client Testimonial
“Sigma Solutions helped us fix our
GST compliance issues and reduce our tax burden. Their expert tax planning
saved us ₹10 lakhs in just one year! We now have a structured taxation system,
free from penalties.”
— Director, Manufacturing Company – Northeast India