How to Save costs for Global In-house & Captive Centres in India

Inida Cic


There are over 1,200 Global In-house (GICs) & captive centres in India, employing over 800,000 individuals in the industry according to various industry reports. Most of these companies aim to provide cost savings by and developing central processing capabilities across IT, accounts, operations, engineering services, R&D among other areas for worldwide subsidiaries of their parent company.

With an increasing bouquet of services provided by these GICs, there exists a constant requirement of international employee travel to connect with their counterparts around the world. Key reasons for such employee travel include business meetings, trainings, project migrations, project delivery among other reasons for travel. This results in large travel overheads for the GICs in India.

It should be good news then to know that up to 25% of these costs can be recovered in the form of foreign VAT refunds from European jurisdictions through the 13th Directive reclaim mechanism.

If an Indian GIC has not considered the exercise of auditing their employee expenses for foreign VAT refund opportunities, it should now be number one on the finance director’s to do list. This can be a significant cost reduction for a GIC, which is one of their key goals every year.

According to our research based on a recent OECD study, companies across the globe lose out on GBP 20 billion in unclaimed VAT. This is due to the burdensome process to achieve a refund and the administrative nightmare of having to know 32 different local VAT laws.

VAT IT offers a fully outsourced solution to all Indian GICs. With our premium service model and industry-leading technology, VAT Cloud, we are able to maximise VAT yields up to 75%.

If you are a GIC, then we recommend speaking to our local experts on the matter and seeing where we can help your company contribute real cash to your bottom line.

For more information please contact one of our three Indian offices or email sahil@vatit.co.in.

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