2025-07-19

Tax Due Diligence – What the Ledgers Won’t Show

Tax Due Diligence – What the Ledgers Won’t Show

Title: The Hidden Tax Traps

 

We look beyond books to assess:

  • GST and TDS defaults

  • Transfer pricing compliance

  • Tax positions under scrutiny

  • Legacy liabilities

 

Avoid buying someone else’s tax headaches.On paper, everything looks fine.
But taxes are where skeletons hide behind spreadsheets.

In Tax Due Diligence, we go beyond trial balances to uncover what could become costly post-deal surprises.

 

 Key Areas We Scrutinize:

1 GST & TDS Compliance

  • Delayed or missed filings

  • Short deductions or wrong classifications

  • Ineligible ITC claims
    Non-compliance = penalties + interest + reputational risk

 

 2Transfer Pricing Exposure

  • Related-party transactions without benchmarking

  • Missing documentation or arm’s length evidence

  • Thin capitalization or base erosion concerns

 

3 Tax Positions Under Scrutiny

  • Aggressive interpretations under Income Tax Act

  • Unclaimed or risky deductions likely to attract audits

  • Past notices, assessments, or open proceedings

 

4 Legacy Liabilities & Contingent Risks

  • Old disputes still hanging in appellate forums

  • Unaccounted liabilities passed off as "provisions"

  • Deferred tax assets that may not materialize

 

 A clean ledger ≠ a clean tax trail.
Many deals sour after the term sheet - when buyers inherit unseen tax risks or face retrospective notices.


 

You're not just buying the business - you're inheriting its tax past.
With the right tax due diligence, you can avoid paying for someone else’s mistakes.

#StartupTips #DueDiligence #InvestorReadiness #StartupFounders #Fundraising #Valuation #Governance #FinancialClarity #DueDiligenceSeries #valuationexpert #dealadvisory #ValueEdge #investments #mergersandacquisitions #privateequity #aifinvestments #mutualfundhouse  #legalduediligence #compliancecheck #riskmanagement #dealmakers

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Frequently Asked Questions

We provide professional valuation services across the following asset classes:
  • Land & Building (Residential, Commercial, Industrial, Agricultural)
  • Plant & Machinery (Manufacturing units, industrial assets)
  • Securities or Financial Assets (Equity shares, debentures, startups, AIFs)
  • Specialized Valuations for M&A, financial reporting, IBC, income tax, and more

Yes, our reports are fully compliant with applicable laws including:
  • Companies Act, 2013
  • SEBI Regulations (SAST, ICDR, AIF)
  • IBC, 2016
  • Income Tax Act, 1961
  • Valuation Standards by ICAI, IBBI, and IVSC

Absolutely. We have IBBI-Registered Valuers under all three categories—Land & Building, Plant & Machinery, and Securities/Financial Assets. Our team also includes experienced chartered accountants and engineers.

We serve a wide range of clients including:
  • Companies & Startups
  • CA & Law Firms
  • Banks & NBFCs
  • Government Departments
  • Individuals & HUFs

Our process is simple and efficient:
  1. Initial consultation to understand the requirement
  2. Document collection and site visit (if needed)
  3. Data analysis and valuation calculation
  4. Final report delivery, certified by a Registered Valuer

Key documents generally include:
  • Ownership/title documents
  • Asset photos or plant list
  • Latest financials
  • Company PAN, GST, or registration
  • Cap tables or investment details (for startups)

Turnaround time:
  • Land/Building or Plant & Machinery: 3–7 working days
  • Financial Assets / Startups: 1–7 working days
  • Fast-track services available on request.

Valuation may be required for:
  • Startup fundraising & ESOPs
  • Business transfers or buyouts
  • Regulatory compliance (SEBI, IBC, Income Tax)
  • Bank loans or mortgages
  • Fair value financial reporting
  • Mergers & Acquisitions

Yes, we specialize in:
  • 409A compliant valuations
  • DCF, NAV, and Berkus method-based startup valuations
  • ESOP pricing & compliance support

Our fees are competitive and project-specific, based on:
  • Nature and size of asset
  • Complexity of engagement
  • Regulatory requirements
  • Contact us for a personalized quote.

Our detailed reports feature:
  • Valuation method and justification
  • Market research & data
  • Key assumptions and disclaimers
  • Final value conclusion
  • Certificate by the Registered Valuer

Yes. We offer remote/desk-based valuation for startups, financial assets, and select use-cases. For physical assets, we usually require on-site verification.

Yes. We offer:
  • Monthly/quarterly retainer packages
  • Bulk valuation pricing for CA firms, legal advisors, banks, and corporates

Yes. Client confidentiality is paramount. All data shared is stored securely and not disclosed to any third party without your consent.

You can get started by:
  • Filling out our Contact Form
  • Calling us directly
  • Scheduling a free consultation