Tax Due Diligence
Tax due diligence — direct tax, GST, TDS and transfer pricing exposures, pending notices and litigation reviewed before a transaction.
- Estimate Cost
- ₹50,000 – ₹3,00,000
- Typical duration
- 14 days
Service overview
Detailed review of direct taxes, indirect taxes (GST/VAT), transfer pricing documentation, historical tax assessments, pending tax disputes, and contingent tax liabilities.
Who needs it? / When is it needed?
Acquirers, investors, and target management before executing corporate restructuring, M&A transactions, or equity investments.
What to expect from the WCP Professionals
Historical tax return audit, review of GST compliance and input tax credit (ITC) reconciliation, assessment of transfer pricing exposure, and tax notice risk mapping.
Key deliverables
Tax Due Diligence Report, Direct & Indirect Tax Risk Matrix, Tax Contingent Liability Schedule, and Deal Structuring Tax Recommendations.
Standard turnaround time
2 to 4 weeks (depending on corporate structure, international operations, and volume of tax filings).
Government fees, timelines & key outcomes
No government fee; the review is advisory.
Key outcomes: quantified tax exposures and pending disputes, so they can be priced, indemnified or fixed before closing.
Forms & filings involved
Income tax returns (ITR), GST returns (GSTR-1, GSTR-3B, GSTR-9/9C), and transfer pricing compliance filings.
Documents required
Audited financial statements, tax audit reports, income tax returns, GST filings & challans, transfer pricing documentation, and tax assessment orders.
What we need from you
Access to internal tax team/external tax advisors, read-only access to tax portals, and documentation of all ongoing tax disputes.
Important conditions
Availability of historical tax assessment records and full disclosure of pending tax appeals or notices.
Additional information
Essential for structuring the deal (Asset Purchase vs. Share Purchase) and drafting tax indemnity clauses in transaction documents.
The estimated cost covers indicative professional fees only. Government fees, stamp duty and taxes are payable at actuals.
How it works
- 1. Raise a service enquiry describing your requirement.
- 2. A Relationship Manager reviews it and opens it for bidding.
- 3. Pay into escrow and assign the professional you select.
- 4. Track progress to completion, then accept and release payment.
Frequently asked questions
What does tax due diligence cover?
Income tax, GST, TDS, transfer pricing and other indirect taxes — compliance history, open assessments, notices and litigation.
Why does it matter in share acquisitions?
The company's historical tax liabilities stay with it after the purchase, so the buyer inherits them.
How are tax risks handled in the deal?
Through price adjustments, escrow, specific tax indemnities or conditions to settle issues before closing.
How many years are reviewed?
Usually the years still open to reassessment, commonly the last three to six years depending on the issue.