Indirect taxes are spread through in every area of an entity's business. Their impact on material and production costs, cash flow, profitability and, ultimately, on shareholder value is an important element to stay ahead in competition

The current Indirect tax regime in India is still in a state of evolution, despite the various reforms in recent years. The system is quite complex, with multi-layered levies both at the Central and State level. The Central Government levies tax on goods at the point of import (Customs duty), manufacture (Excise duty), inter-state sales (Central sales tax or CST), and on provision of services (Service tax). The states, on the other hand, have been vested with powers to levy tax on sale of goods within the state (Value Added Tax or VAT), and on the entry of goods into the state (Entry tax), under the respective state laws.

Further, as India is committed to move towards uniform Goods and Services Tax (GST) regime, this needs to be factored in any significant tax approach developed at present.