Practus’ finance and accounting services assisted the consumer durables company in reducing the amount of service value on which excess service tax was paid from $4.7 million to $2.7 million.
|Client Name||ROI||Industry||Ownership||Management||No. of Employees||Size||Project Duration|
|A Manufacturing Company||1.6x||Manufacturing||Public Ltd.||Professional||~2800||$682 million||1 month|
About The Company
Cooling Crystals is India’s leading air conditioning and commercial refrigeration company with a network of 32 offices, 5 modern manufacturing facilities, and 2900 channel partners. Cooling Crystals has 5000 stores for room ACs, packaged air conditioners, chillers, and cold rooms. It also manufactures refrigeration products and systems, along with 765 service associates reaching out to customers in over 800 towns.
Practus’ Role in Performance Improvement
- Validating data provided by the Cooling Crystals team.
- Examining the ST—3 Return that was filed.
- Outstanding debtors were validated throughout all years.
- Checking transactions for double taxation, that is, on both the invoice and any advance received against that invoice.
- Certifying transactions that were ineligible for service tax.
Impact Delivered in Performance Improvement
- All service tax returns for the past five years have been reconciled with the books of accounts.
- The causes of excessive service tax payments have been identified.
- The majority of the cases involved double payment of service tax.
- The total amount of service value on which excess service tax was paid was reduced from $5 million to $3 million.