BHAVIKA TANNA-132920
CA Professional Achiever: Engineering &
Capital Goods Sector
ASSISTANT MANAGER – LARSEN & TOUBRO LIMITED
• Turnover (Sales) of the Company:
Rs. 64,960 Cr
• Net worth of the Company:
Rs. 29,387 Cr
• Market Capitalization of the Organization:
–
–
Rs. 80,031 Cr – March’12
Rs. 98,010 Cr – September’12
KEY ROLE IN THE ORGANIZATION
 Provision of Tax opinion on Foreign Remittances u/s 195.
 Implementing the provisions of Section 206AA- Requirement to furnish PAN
(including Foreign suppliers)
 Liaising with external Tax consultants for obtaining lower/Nil With Holding Tax
Orders
 Preparation of monthly/quarterly Performance management and other reports for
Management Reporting & Decision making
 Responsible for building up of an Efficient Tax structure & developing a cost
effective Tax model for executing projects in Middle East & other International
Operations as a part of L&T’s Strategic Plan –”Lakshya 2016”,
 Facilitate and prepare for Quarterly Closing, Budget and Mid term review activities
and meet the deadlines set.
MAJOR ACHIEVEMENTS
Successful Implementation in PAN compliance u/s 206AA
 Created awareness about PAN to Foreign Vendors across globe
 PAN obtained for more than 60 foreign Vendors across globe
Vendors in Countries
Singapore
UAE
United Kingdom
USA
Qatar
Netherlands
Others
Nos.
21
9
7
4
3
3
> 20
Challenges
No past experience in dealing
with foreign vendors for PAN
Fears of Foreign vendors- w.r.t
Indian PAN. Followed by
Returns thereafter
Absence of PAN
would have
attracted 20%
(25%) as
additional costs
• Partnering with Business to create awareness of new section 206AA
• Convincing Foreign vendors to obtain PAN in India by attending con-calls etc.
• Business support by providing Guidance to Foreign Vendors to fill in form 49A
No uniformity of Documents for
PAN for all countries across the
world
Convincing foreign vendors
PAN
not forming
part of
that documents
costs charged
by Indian
contract
Embassies will not to be
absorbed by us.
Documents in Foreign
languages from Foreign
countries.
Docs from all over the globe in
non English languageTranslation problems
Contracts with Foreign Vendors are usually net of Taxes i.e Taxes is an additional cost to the company
MAJOR ACHIEVEMENTS
Have succeeded in obtaining Nil/Lower Withholding Tax orders (WHT) which was not
possible without PAN & Tax Residency certificates (TRC) (For ~ 20 of our Foreign
vendors)
• The achievements can be maximum of 2 slides
in bullet points
Problems faced are as follows
No standard documents listed by Assessing officer (AO) to release the Tax order
 Documents demanded by AO were never forming part of contract documents
Major business was with Singapore & UAE vendors for whom we had to obtain Lower/Nil WHT
certificates
 Foreign Vendors reluctant to provide the documents required for obtaining PAN & additional
documents demanded by AO required for obtaining WHT order as they n
 Limitations to obtain Tax residency certificates from Revenue Authorities of various countries ( Time
constraint, Assessment year relevance, validity of the TRC)
Converting
experience into
Extended Business support to

Please
specify exact roleobtain
whether
achievement
checklistNotefor future
reference
PAN forthe
Foreign
vendors
by adding
the docs
required
by
documenting
the process
team
or team
leader
or in any&other
capacity.
AO as part of future contracts
flow for reference to peer
groups for any new vendor
Savings of more than Rs. 15
is as
of obtaining
cr a
onmember
account of
PAN for the vendors whom
we obtained Tax orders