Deloitte eyes No. 1 Position in Indirect Tax Consulting

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Deloitte eyes No. 1 Position in Indirect Tax Consulting

AIT News Network

MUMBAI. Indirect Tax Practice has become a goldmine for Consulting Industry with more and more MNCs setting up manufacturing or servicing base and SEZ in India and the Consulting Companies have become aggressive in shift of their strategy to garner bigger slice of the cake of the field.

Deloitte which was considered No. 4 in Indirect Tax Practice some time back is growing at a pace faster than its competitors by picking right people at the right time and is now eyeing No. 1 Position by its aggressive hiring strategy and induction of several experts in its fold.

Atul Gupta an ex-IRS Officer and Top Indirect Tax Expert has been inducted as Partner-cum-Executive-Director(Indirect Tax) in Delhi while Prashant Deshpande PWC’s face in Mumbai for last several years has been inducted as Leader-cum-Executive Director in Mumbai. Many more Indirect Tax Experts are set to join Deloitte in next few months and it may double the number of experts in a short time.

Till now Deloitte had only one Partner(Indirect Tax) Thirumalai who is based in Hyderabad. With the Practice growing and the field opening ; the induction of more Partners was part of the strategy to grow at a faster pace.

Even other Consulting Companies who have only one or two Partners in Indirect Tax Practice have decided to induct many more Partners as the sole Partner is traveling 4 days in a week and cannot handle the growing demands of the clients. Placement Agents have already been sounded by the Companies to look for Partners in places like Chennai, Bangalore, Kolkata, Pune, Hyderabad and Ahmedabad on compensation ranging from Rs 1 Crore to Rs 2 Crore Per Annum.

Further, Top Management of some companies have a new thought that there is no point in paying Rs 4 Crore Per Annum to a Partner who is sharing the profit of whole India’s Practice when 4 Partners can be hired in 4 Crore and they can be stationed in 4 Metros and in turn the Practice can also grow proportionately.

Over dependence on limited Partners also costs the Companies heavily as it exposes itself to the risk of the Partner moving out to its competitor with his team and the clients.

But Indirect Tax field is very exclusive field and it is not easy to find a Domain Expert of the field who can handle the clients on his own. Some Companies have relaxed all the rules of recruitment and are open to hiring Candidates without any Professional Degree as Partner as positions can not be left vacant and the Company needs faces for presenting to its clients . A Big 4 Consulting Company hired a Candidate without any Professional Degree as Partner-cum-Executive Director(Indirect Tax) on package of Rs 1.5 Crore Per Annum for providing Professional Advisory Services to its MNC clients. No matter if the candidate is not eligible to appear before any service tax, central excise or customs authority as a Consultant; he can still appear as a Consultant before his MNC clients who are not going to ask for his degree. For appearing before the authorities others can be hired. The job profile given to the candidate includes interviewing and hiring 6 dozen Professionals for the Company and giving Opinion on legal and technical issues to its clients.

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