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Presentation on theme: "We are dependable and trustworthy knowledge processing partner. Although we are a separate entity, we are an integrated part of your organization, like."— Presentation transcript:

1 We are dependable and trustworthy knowledge processing partner. Although we are a separate entity, we are an integrated part of your organization, like a slice of a wholesome pie. NEWSLETTER –MARCH 2013 TM

2 INDEX Direct Taxation Indirect Taxation Corporate and Other Laws International Trade and Finance International Trade and Finance Statutory Due Dates for March 2013 Statutory Due Dates for March 2013 Newsletter –March 2013 TM

3 DIRECT TAXATION IndexIndex Budget Highlights Personal Taxation Tax Slabs and basic tax exemption limits remained unchanged. A tax credit of Rs. 2,000 to every person with an income of up to Rs. 5 lakh per annum. Surcharge of 10 % on persons (other than companies) whose taxable income exceeds Rs. 1 crore for only one year. Additional one time deduction of Rs 1 Lakh in respect of interest on housing loan not exceeding Rs. 25 lakh in respect of first house property acquired (not constructed) and valuing upto Rs. 40 Lakh. Contributions made to schemes of Central and State Governments similar to Central Government Health Scheme will be eligible for deduction under section 80D of the Income tax Act. 100 % deduction under income tax act on donations made to National Children Fund. The Deduction under section 80 CCG to be available to a new retail investor being an individual having gross total income upto Rs. 12 lakh for investment in listed equity shares or units of equity oriented fund for three consecutive assessment years. Newsletter – March 2013 TM

4 DIRECT TAXATION IndexIndex Business Taxation Commodities Transaction tax to be levied on non-agricultural commodities future contracts at the same rate as on equity futures and it is to be allowed as a deduction while computing business income. Manufacturing companies eligible for investment allowance of 15 % for investment made more than Rs. 100 crore in plant and machinery during the financial year 2013-14. Eligible date for projects in the power sector to avail benefit under Section 80-IA extended from 31.3.2013 to 31.3.2014. Securities Transaction Tax brought down to 0.01 % from 0.017 %. Corporate Taxation Increase in surcharge from 5 % to 10 % on domestic companies whose taxable income exceeds Rs. 10 crore for only one year. Increase in surcharge from 2 % to 5 % on foreign companies paying higher rate of corporate tax, whose taxable income exceeds Rs. 10 crore for only one year. Increase in surcharge from 5 % to 10 % on dividend distribution tax or tax on distributed income for only one year. Concessional tax of 15 % to be continued for one more year on dividend received by an Indian company from its foreign subsidiary. TM Newsletter – March 2013

5 DIRECT TAXATION IndexIndex Corporate Taxation contd… Introduction of additional income tax @ 20% of profits distributed by unlisted companies to shareholders through buy back of shares. Cash donations to political parties and electoral trusts not to be allowed as deduction. Securitization Trust to be exempted from Income Tax, however tax to be levied at specified rates only at the time of distribution of income for companies, individual or HUF etc. No further tax on income received by investors from the Trust. Investor Protection Fund of depositories exempt from Income-tax in some cases. Non- resident taxation Tax at 5% on income distributed shall be payable in respect of income distributed by an infrastructure debt fund (whether set up as NBFC or mutual fund) to a Non-resident investor. Royalty and technical expertise tax increased from 10 % to 25 %, where DTAA doesn’t apply. TM Newsletter – March 2013

6 DIRECT TAXATION IndexIndex TDS and others TDS of 1 per cent on land deals worth over Rs. 50 lakh, however agricultural land are exempted. TDS is to be calculated at a concessional rate of 5% on interest payable to a non-resident in case of certain rupee denominated long term infrastructure bonds issued by an Indian company in India. Definition of Capital Assets to exclude Agriculture Land. Modified GAAR to be implemented from April 2016. TM Newsletter – March 2013

7 INDIRECT TAXATION IndexIndex Service Tax Return for the period 1st July 2012 to 30 th September 2012 Vide notification1/2013-Service Tax dated 22 nd February 2013, it is notified that data for the remaining portion of the half year ( i.e 1-7-2012 to 30-9-2012 ) can now be furnished by the assessees in the revised Form ST3. The last date for filing the return is 25 th March 2013. Newsletter – March 2013 TM

8 INDIRECT TAXATION IndexIndex Budget Highlights Customs  Reduction in duty on specified machinery for manufacture of leather and leather goods including footwear from 7.5 % to 5 %  Reduction in duty on pre-forms precious and semi-precious stones from 10% to 2 %  Export duty on de-oiled rice bran oil cake withdrawn  New duty imposed on export of unprocessed ilmenite @ 10 %  New duty imposed on export on ungraded ilmenite @ 5 %  Increase in duty on Set Top Boxes from 5% to 10%  Increase in duty on raw silk from 5% to 15 %  Duties on Steam Coal and Bituminous Coal equalized. Custom duty @ 2% and CVD @ 2 % levied on both kinds coal  Increase in duty on imported luxury motor vehicles from 75 % to 100 %  Increase in duty on imported motorcycles with engine capacity of 800cc or more from 60 % to 75 %  Increase in duty on imported yachts and similar vessels from 10 % to 25 %  Duty free gold limit increased to Rs. 50,000 in case of male passenger and Rs.1, 00,000 in case of a female passenger subject to conditions. TM Newsletter – March 2013

9 INDIRECT TAXATION IndexIndex Excise  Relief for readymade garment industry. In case of cotton there will Zero % excise duty at fiber stage. In case of spun yarn made of manmade fiber, duty of 12 % at the fiber stage.  Handmade carpets and textile floor coverings of coir and jute totally exempted from excise duty  Ships and vessels exempted from excise duty. No CVD on imported ships and vessels.  Increase in specific excise duty on cigarettes, cigars, cheroots and cigarillos by 18 %  Excise duty on non-taxi SUVs hiked to 30 per cent from 27 per cent  Excise duty on SUVs increased from 27 % to 30 %  Excise duty on marble increased from Rs. 30 per square meter to Rs. 60 per square meter  New duty imposed @ 4 % on silver manufactured from smelting zinc or lead  Increase in duty from 1 % to 6 % on mobile phones priced at more than Rs. 2000  MRP based assessment in respect of branded medicaments of Ayurveda, Unani, Siddha, Homeopathy and bio-chemic systems of medicine to reduce valuation disputes. There will be an abatement of 35 percent TM Newsletter – March 2013

10 INDIRECT TAXATION IndexIndex Service tax  Vocational courses offered by institutes affiliated to the State Council of Vocational Training and testing activities in relation to agricultural produce included in the negative list for service tax  Exemption of Service Tax on copyright on cinematography limited to films exhibited in cinema halls.  Service Tax to be levied on all air conditioned restaurant  For homes and flats with 1) carpet area of 2,000 sq.ft. or more or 2) value of Rs. 1 crore or more which are high-end constructions, where the component of services is greater, rate of abatement reduced from 75 % to 70 %  A onetime scheme called ‘Voluntary Compliance Encouragement Scheme’ has been proposed to motivate the registered assesses under service tax to file returns and pay tax dues since 1St October 2007 to avoid interest, penalty and other consequences TM Newsletter – March 2013

11 INDIRECT TAXATION IndexIndex Industry-wise Budget Impact TM IndustryBudget Impact Automoboile3%hike in excise duty for SUVs a big jolt for the industry. Also import duty on luxury cars increased to 100% from 75%, which will impact in increase in on road prices of top-end models. FMCGHigher tax on royalties will increase tax outgo of MNCs operating in FMCG. Excise Duty on cigarettes and cigars is up by 18% as well as the duty on mobiles costing over INR 2000 is increased to 6% from 1%, making smart phones dearer. Banking and FinanceCapital Infusion will help PSU banks and support loan growth. Housing finance companies focusing small size loans will benefit. Newsletter – March 2013

12 INDIRECT TAXATION IndexIndex Industry-wise Budget Impact TM IndustryBudget Impact Real Estate/ ConstructionHigher Fund allocation will trigger greater home ownerships in rural as well as urban areas. Cost of housing in metros will go up as an implication of service tax component has gone up. HospitalityService tax on AC restaurants will lead to lower revenue growth, as companies will pass on the burden to consumers reducing their visit frequency. TextileRemoval of Excise duty on garments, companies will be able to shave off 3.65 of their cost which will improve their operative profit margin. Newsletter – March 2013

13 CORPORATE AND OTHER LAWSIndexIndex RBI opens doors to broking and real estate firms to set up banks The Reserve Bank of India on 22 nd February 2013 set the stage for entry of new banks in the private sector by unveiling the much-awaited final guidelines. The central bank appears to have accommodated the Government’s viewpoint and reversed the stand it had taken in the draft guidelines of not allowing broking and real-estate companies in the banking space. The RBI said entities in the private sector, public sector and non-banking finance companies (NBFCs) will be eligible to set up a bank. Eligible NBFCs could be permitted to promote a new bank or convert themselves into banks. Eligible promoters will have to make an application to the RBI by July 1, 2013. Newsletter – March 2013 TM

14 INTERNATIONAL TRDAE AND FINANCEIndexIndex Budget Impact The Union Budget contains a slew of measures to reduce bottlenecks faced by FIIs and mutual funds. The Budget tries to make it easier for foreign investors such as central banks, university endowments, pension funds to invest in India by proposing uniform KYC norms. It has also allowed portfolio investors to use their investment in corporate bonds and government securities as collateral to meet their margin requirements, thus freeing up their resources. Also distinction has been introduced in FII and FDI. Newsletter – March 2013 TM

15 STATUTORY DUE DATES FOR FEBRUARY 2013 Index Index Statutory Due Dates Calendar for March 2013 Newsletter – March 2013 Due DateStatutory Compliance 5 th March 2013Payment of Service Tax/ Excise duty 7 th March 2013Payment of TDS 15 th March 2013Payment of Provident Fund contribution/ Profession Tax 15 th March 2013Payment of Advance Income Tax 21 st March 2013Payment of ESIC/ MVAT TM

16 Get in Touch +91.98228 70043 +91.98231 18326 +91.20.3234 1738 +91.20.6500 8738

17 Newsletter –March 2013 THANK YOU ! TM

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