©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O MARCH 2007 CALCUTTA ROWING CLUB KOLKATA FINANCE BILL, 2007 A TIME FOR RETROSPECTION

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 HARSH REALITIES RATES OF INCOME TAX – INDIVIDUALS NO CHANGE IN THE BASIC RATES OF PERSONAL INCOME TAX ADDITIONAL EDUCATION 1% ON I.T. AND SURCHARGE KNOWN AS “SECONDARY & HIGHER EDUCATION CESS ON INCOME TAX” IMPOSED BASIC EXEMPTION LIMIT FOR INDIVIDUALS INCREASED BY RS 10,000/- FOR ALL

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 HARSH REALITIES

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 HARSH REALITIES RATES OF INCOME TAX – CORPORATE NO CHANGE IN THE BASIC RATE OF CORPORATE INCOME TAX SURCHARGE REMOVED FOR COMPANIES AND FIRMS HAVING TOTAL INCOME NOT EXCEEDING RS. 1 CRORE (RS10 MILLION) DIVIDEND DISTRIBUTION TAX INCREASED, EFFECTIVE, 1 APRIL 2007, FROM 12.5% TO 15% AND TO 25% FOR MONEY MARKET MUTUAL FUNDS OR LIQUID FUNDS ADDITIONAL EDUCATION 1% ON INCOME TAX AND SURCHARGE IMPOSED

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 HARSH REALITIES

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 HARSH REALITIES

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 HARSH REALITIES

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 A WORK OF ‘CAPITAL ASSETS’ DEFINTION OF CAPITAL ASSETS WIDENED TO INCLUDE ARCHAEOLOGICAL COLLECTIONS, DRAWINGS, PAINTINGS, SCULPTORS OR ANY WORK OF ART EFFECTIVE DATE: 1 APRIL 2008 COMMENT: SUCH ASSETS WILL NOW ATTRACT CAPITAL GAINS TAX ON THEIR TRANSFER INDEXATION AVAILABLE DIFFICULTIES IN VALUATION SELF GENERATED ASSETS MAY NOT CHECK CONVERSION OF UNACCOUNTED MONEY

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 UNCHARTERED TERRITORY - INDIA REDIFNED DEFINITION OF INDIA WIDENED TO INCLUDE ITS TERRITORIAL WATERS, SEABED AND SUB-SOIL UNDERLYING SUCH WATERS, CONTINENTAL SHELF, EXCLUSIVE ECONOMIC ZONE OR ANY OTHER MARITIME ZONE AS REFERRED TO IN THE TERRITORIAL WATERS, CONTINENTAL SHELF, EXCLUSIVE ECONOMIC ZONE AND OTHER MARITIME ZONES ACT, 1976 DEFINITION OF INDIA WIDENED TO INCLUDE ITS TERRITORIAL WATERS, SEABED AND SUB-SOIL UNDERLYING SUCH WATERS, CONTINENTAL SHELF, EXCLUSIVE ECONOMIC ZONE OR ANY OTHER MARITIME ZONE AS REFERRED TO IN THE TERRITORIAL WATERS, CONTINENTAL SHELF, EXCLUSIVE ECONOMIC ZONE AND OTHER MARITIME ZONES ACT, 1976 EFFECTIVE DATE: 25 AUGUST 1976 EFFECTIVE DATE: 25 AUGUST 1976 COMMENT: COMMENT: TO AFFECT THE PENDING ASSESSMENTS OF PERSONS OPERATING IN SUCH AREAS INCLUDING EXCLUSIVE ECONOMIC ZONES WHICH EXTENDS UP TO 200 NAUTICAL MILES FROM THE SHORE TO AFFECT THE PENDING ASSESSMENTS OF PERSONS OPERATING IN SUCH AREAS INCLUDING EXCLUSIVE ECONOMIC ZONES WHICH EXTENDS UP TO 200 NAUTICAL MILES FROM THE SHORE HIGH SEA SALES UP TO 200 NAUTICAL MILES HIGH SEA SALES UP TO 200 NAUTICAL MILES

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 INCOMES OF NON-RESIDENTS - SOURCE RULE EXPLANATION IN SECTION 9 PROPOSED TO BE INSERTED TO PROVIDE FOR TAXATION OF INTEREST, ROYALTY AND FEES FOR TECHNICAL SERVICES IN INDIA IRRESPECTIVE OF WHETHER THE NON- RESIDENT HAS A RESIDENCE OR PLACE OF BUSINESS OR BUSINESS CONNECTION IN INDIA EXPLANATION IN SECTION 9 PROPOSED TO BE INSERTED TO PROVIDE FOR TAXATION OF INTEREST, ROYALTY AND FEES FOR TECHNICAL SERVICES IN INDIA IRRESPECTIVE OF WHETHER THE NON- RESIDENT HAS A RESIDENCE OR PLACE OF BUSINESS OR BUSINESS CONNECTION IN INDIA EFFECTIVE DATE: 1 JUNE 1976 EFFECTIVE DATE: 1 JUNE 1976 COMMENT: COMMENT: TO AFFECT THE PENDING ASSESSMENTS TO AFFECT THE PENDING ASSESSMENTS INDIAN PROJECTS TO BE COSTLIER INDIAN PROJECTS TO BE COSTLIER THREAT TO INDIA’S COMPETITIVE EDGE THREAT TO INDIA’S COMPETITIVE EDGE

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 SPECIAL ECONOMIC ZONES SEZ TAX BENEFIT RESTRICTED AND TO BE AVAILABLE TO A UNIT WHICH FULFILLS ALL THE FOLLOWING CONDITIONS : SEZ TAX BENEFIT RESTRICTED AND TO BE AVAILABLE TO A UNIT WHICH FULFILLS ALL THE FOLLOWING CONDITIONS : IT BEGINS TO MANUFACTURE OR PRODUCE ARTICLES OR THINGS OR PROVIDES SERVICES DURING THE FINANCIAL YEAR RELEVANT TO THE ASSESSMENT YEAR COMMENCING ON OR AFTER 1 APRIL 2006 IT BEGINS TO MANUFACTURE OR PRODUCE ARTICLES OR THINGS OR PROVIDES SERVICES DURING THE FINANCIAL YEAR RELEVANT TO THE ASSESSMENT YEAR COMMENCING ON OR AFTER 1 APRIL 2006 IT IS NOT FORMED BY THE SPLITTING UP OR RECONSTRUCTION OF A BUSINESS ALREADY IN EXISTENCE IT IS NOT FORMED BY THE SPLITTING UP OR RECONSTRUCTION OF A BUSINESS ALREADY IN EXISTENCE IT IS NOT FORMED BY THE TRANSFER TO A NEW BUSINESS OF MACHINERY OR PLANT PREVIOUSLY USED FOR ANY PURPOSE IT IS NOT FORMED BY THE TRANSFER TO A NEW BUSINESS OF MACHINERY OR PLANT PREVIOUSLY USED FOR ANY PURPOSE EFFECTIVE DATE: 10 FEBRUARY 2006 EFFECTIVE DATE: 10 FEBRUARY 2006

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 SALARIES–CONCESSION IN THE MATTER OF RENT BASIS OF COMPUTATION FOR CONCESSION IN THE MATTER OF RENT CLARIFIED BASIS OF COMPUTATION FOR CONCESSION IN THE MATTER OF RENT CLARIFIED CONCESSION TO BE VALUED AT 10%/7.5% OF THE SALARY CONCESSION TO BE VALUED AT 10%/7.5% OF THE SALARY (TO BE INCREASED TO 20% AND 15% WITH EFFECT FROM 1 APRIL 2006) ACCOMMODATION TAKEN ON LEASE/RENT BY THE EMPLOYER- ACCOMMODATION TAKEN ON LEASE/RENT BY THE EMPLOYER- THE ACTUAL AMOUNT OF LEASE/RENT PAYABLE BY THE EMPLOYER OR 10% OF SALARY, WHICHEVER IS LOWER VALUE OF FURNITURE TO BE TAKEN AT 10% OF THE COST OF THE FURNITURE OR THE ACTUAL HIRE CHARGES VALUE OF FURNITURE TO BE TAKEN AT 10% OF THE COST OF THE FURNITURE OR THE ACTUAL HIRE CHARGES AMOUNT RECOVERABLE FROM THE EMPLOYEE FOR RENT AND FURNITURE TO BE REDUCED FROM SUCH VALUATION AMOUNT RECOVERABLE FROM THE EMPLOYEE FOR RENT AND FURNITURE TO BE REDUCED FROM SUCH VALUATION EFFECTIVE DATE: 1 APRIL 2002 EFFECTIVE DATE: 1 APRIL 2002

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 SPECIAL RESERVES OF A FINANCIAL CORPORATION EFFECTIVE DATE: 1 APRIL 2008 DEDUCTION TO A FINANCIAL CORPORATION FOR SPECIAL RESERVE PROPOSED TO BE REDUCED FROM 40% TO 20% DEDUCTION TO BE MADE AVAILABLE TO SPECIFIED ENTITIES FOR ELIGIBLE BUSINESSES AS BELOW :

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 REPURGING THE ECONOMY - DISALLOWANCE OF CASH PAYMENTS 100% DISALLOWANCE REINTRODUCED WHERE CASH PAYMENT EXCEEDS RS 20,000/- 100% DISALLOWANCE REINTRODUCED WHERE CASH PAYMENT EXCEEDS RS 20,000/- CASH PAYMENT TO BE DISALLOWED OR DEEMED TO BE INCOME OF THE YEAR OF PAYMENT IRRESPECTIVE OF YEAR OF DEBIT OF SUCH EXPENSES CASH PAYMENT TO BE DISALLOWED OR DEEMED TO BE INCOME OF THE YEAR OF PAYMENT IRRESPECTIVE OF YEAR OF DEBIT OF SUCH EXPENSES EFFECTIVE DATE:1 APRIL 2008 EFFECTIVE DATE:1 APRIL 2008

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 DEDUCTION – ENTERPRISES ENGAGED IN INFRASTRUCTURE DEVELOPMENT BENEFIT OF SEZ NOT TO APPLY TO A PERSON WHO EXECUTES A WORKS CONTRACT ENTERED INTO WITH THE UNDERTAKING OF ENTERPRISE TO WHICH DEDUCTION UNDER SECTION 80IA IS AVAILABLE BENEFIT OF SEZ NOT TO APPLY TO A PERSON WHO EXECUTES A WORKS CONTRACT ENTERED INTO WITH THE UNDERTAKING OF ENTERPRISE TO WHICH DEDUCTION UNDER SECTION 80IA IS AVAILABLE EFFECTIVE DATE: 1 APRIL 2000 EFFECTIVE DATE: 1 APRIL 2000 BENEFIT OF DEDUCTION UNDER SECTION 80IA TO BE DENIED TO AN UNDERTAKING OR ENTERPRISE WHICH IS TRANSFERRED IN THE SCHEME OF AMALGAMATION OR DE MERGER AFTER 31 MARCH 2007 BENEFIT OF DEDUCTION UNDER SECTION 80IA TO BE DENIED TO AN UNDERTAKING OR ENTERPRISE WHICH IS TRANSFERRED IN THE SCHEME OF AMALGAMATION OR DE MERGER AFTER 31 MARCH 2007 EFFECTIVE DATE: 1 APRIL 2008 EFFECTIVE DATE: 1 APRIL 2008

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 TAX HOLIDAY FOR HOTELS AND CONVENTION CENTRES IN SPECIFIED AREAS TAX HOLIDAY FOR HOTELS AND CONVENTION CENTRES IN SPECIFIED AREAS PROVISIONS FOR 100% DEDUCTION TO HOTELS AND CONVENTION CENTRES IN SPECIFIED AREAS FOR FIVE CONSECUTIVE YEARS BEGINNING FROM THE INITIAL ASSESSMENT YEAR PROVISIONS FOR 100% DEDUCTION TO HOTELS AND CONVENTION CENTRES IN SPECIFIED AREAS FOR FIVE CONSECUTIVE YEARS BEGINNING FROM THE INITIAL ASSESSMENT YEAR SPECIFIED AREAS ARE NATIONAL CAPITAL TERRITORY OF DELHI AND THE DISTRICT OF FARIDABAD, GURGAON, GAUTAM BUDHNAGAR AND GHAZIABAD SPECIFIED AREAS ARE NATIONAL CAPITAL TERRITORY OF DELHI AND THE DISTRICT OF FARIDABAD, GURGAON, GAUTAM BUDHNAGAR AND GHAZIABAD DEDUCTION TO BE RESTRICTED TO 2/3/4-STAR CATEGORY DEDUCTION TO BE RESTRICTED TO 2/3/4-STAR CATEGORY EFFECTIVE DATE: 1 APRIL 2008 EFFECTIVE DATE: 1 APRIL 2008

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 TRANSFER PRICING TIME LIMIT FOR COMPLETION OF THE ASSESSMENT IN A CASE WHERE REFERENCE IS MADE TO THE TPO PROPOSED TO BE EXTENDED BY ONE YEAR TIME LIMIT FOR COMPLETION OF THE ASSESSMENT IN A CASE WHERE REFERENCE IS MADE TO THE TPO PROPOSED TO BE EXTENDED BY ONE YEAR TPO TO DETERMINE ARMS LENGTH PRICE AT LEAST TWO MONTHS BEFORE THE EXPIRY OF THE NEW TIME LIMIT TPO TO DETERMINE ARMS LENGTH PRICE AT LEAST TWO MONTHS BEFORE THE EXPIRY OF THE NEW TIME LIMIT AMENDMENTS TO APPLY FROM 1 JUNE 2007 AND WILL ALSO BE APPLICABLE WHERE REFERENCE TO THE TPO WAS MADE BEFORE 1 JULY 2007 BUT TPO DID NOT PASS THE ORDER BEFORE THE SAID DATE AMENDMENTS TO APPLY FROM 1 JUNE 2007 AND WILL ALSO BE APPLICABLE WHERE REFERENCE TO THE TPO WAS MADE BEFORE 1 JULY 2007 BUT TPO DID NOT PASS THE ORDER BEFORE THE SAID DATE

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 M A T EXEMPTION FROM MAT DENIED TO UNDERTAKINGS ESTABLISHED IN FREE TRADE ZONES AND 100% EOUS EXEMPTION FROM MAT DENIED TO UNDERTAKINGS ESTABLISHED IN FREE TRADE ZONES AND 100% EOUS EFFECTIVE DATE: 1 APRIL 2008 EFFECTIVE DATE: 1 APRIL 2008 COMMENT : COMMENT : LOSE OF COMPETITIVE EDGE DUE TO SUCH WITHDRAWLLOSE OF COMPETITIVE EDGE DUE TO SUCH WITHDRAWL FATE OF OTHER EXEMPTIONS IN THE MAT PROVISIONSFATE OF OTHER EXEMPTIONS IN THE MAT PROVISIONS HONEY, I SHRUNK THE EXEMPTIONS

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 FRINGE BENEFITS TAX EMPLOYEE’S STOCK OPTION PLAN BROUGHT WITHIN THE PURVIEW OF FBT EMPLOYEE’S STOCK OPTION PLAN BROUGHT WITHIN THE PURVIEW OF FBT THE FAIR MARKET VALUE OF ESOP TO BE TAKEN ON THE DATE OF EXERCISE OF THE OPTION BY THE EMPLOYEE AS REDUCED BY THE AMOUNT ACTUALLY PAID OR RECOVERED BY THE EMPLOYEE THE FAIR MARKET VALUE OF ESOP TO BE TAKEN ON THE DATE OF EXERCISE OF THE OPTION BY THE EMPLOYEE AS REDUCED BY THE AMOUNT ACTUALLY PAID OR RECOVERED BY THE EMPLOYEE FMV TO BE DETERMINED IN ACCORDANCE WITH THE METHOD PRESCRIBED BY THE CBDT FMV TO BE DETERMINED IN ACCORDANCE WITH THE METHOD PRESCRIBED BY THE CBDT FOR DETERMINING CAPITAL GAINS ON TRANSFER OF SECURITY OR EQUITY SHARES ACQUIRED UNDER ESOP, THE COST OF ACQUISITION WILL BE THE VALUE AS DETERMINED ABOVE FOR DETERMINING CAPITAL GAINS ON TRANSFER OF SECURITY OR EQUITY SHARES ACQUIRED UNDER ESOP, THE COST OF ACQUISITION WILL BE THE VALUE AS DETERMINED ABOVE AMOUNTS OF EXPENDITURE INCURRED ON DISPLAY OF PRODUCTS AS WELL AS ON DISTRIBUTION OF SAMPLES, OF ANY ITEM EITHER FREE OF COST OR AT CONCESSIONAL RATE TO ANY PERSON TO BE EXCLUDED FROM FBT AMOUNTS OF EXPENDITURE INCURRED ON DISPLAY OF PRODUCTS AS WELL AS ON DISTRIBUTION OF SAMPLES, OF ANY ITEM EITHER FREE OF COST OR AT CONCESSIONAL RATE TO ANY PERSON TO BE EXCLUDED FROM FBT EFFECTIVE DATE: 1 APRIL 2008 EFFECTIVE DATE: 1 APRIL 2008

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 DEDUCTION OF TAX AT SOURCE 8% SAVINGS (TAXABLE) BONDS, 2003 TO ATTRACT TDS 8% SAVINGS (TAXABLE) BONDS, 2003 TO ATTRACT TDS NO TDS ON INTEREST INCOME UP TO RS.10,000/- PAID BY A BANKING COMPANY OR A POST OFFICE IN RESPECT OF NOTIFIED SCHEMES OR A COOPERATIVE SOCIETY ENGAGED IN CARRYING ON THE BUSINESS OF BANKING NO TDS ON INTEREST INCOME UP TO RS.10,000/- PAID BY A BANKING COMPANY OR A POST OFFICE IN RESPECT OF NOTIFIED SCHEMES OR A COOPERATIVE SOCIETY ENGAGED IN CARRYING ON THE BUSINESS OF BANKING INDIVIDUALS/HUF TO DEDUCT TAX AT SOURCE ON PAYMENTS MADE TO CONTRACTORS IF THEY ARE LIABLE FOR AUDIT UNDER SECTION 44AB - NO TDS ON PAYMENTS MADE TO A CONTRACTOR FOR PERSONAL PURPOSES INDIVIDUALS/HUF TO DEDUCT TAX AT SOURCE ON PAYMENTS MADE TO CONTRACTORS IF THEY ARE LIABLE FOR AUDIT UNDER SECTION 44AB - NO TDS ON PAYMENTS MADE TO A CONTRACTOR FOR PERSONAL PURPOSES RATE OF TDS ON COMMISSION OR BROKERAGE INCREASED TO 10% RATE OF TDS ON COMMISSION OR BROKERAGE INCREASED TO 10% RATE OF TDS REDUCED TO 10% IN RELATION TO RENT FOR MACHINERY, PLANT AND EQUIPMENT RATE OF TDS REDUCED TO 10% IN RELATION TO RENT FOR MACHINERY, PLANT AND EQUIPMENT RATE OF TDS INCREASED TO 10% ON FEES FOR PROFESSIONAL / TECHNICAL SERVICES RATE OF TDS INCREASED TO 10% ON FEES FOR PROFESSIONAL / TECHNICAL SERVICES EFFECTIVE DATE: 1 JUNE 2007 EFFECTIVE DATE: 1 JUNE 2007

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 SILVER LINING - SERVICE TAX INCREASE IN EXEMPTION LIMIT FROM RS. 400,000 TO RS. 800,000 INCREASE IN EXEMPTION LIMIT FROM RS. 400,000 TO RS. 800,000

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 ENTRAPMENT SERVICE TAX - NEW SERVICES RENTING OF IMMOVABLE PROPERTY FOR BUSINESS OR COMMERCE BY ANY PERSON TO ANY OTHER PERSON RENTING OF IMMOVABLE PROPERTY FOR BUSINESS OR COMMERCE BY ANY PERSON TO ANY OTHER PERSON EXCEPTIONS: EXCEPTIONS: VACANT LAND SOLELY USED FOR AGRICULTURE, AQUACULTURE, FARMING FORESTRY, ANIMAL HUSBANDRY, MINING VACANT LAND SOLELY USED FOR AGRICULTURE, AQUACULTURE, FARMING FORESTRY, ANIMAL HUSBANDRY, MINING LAND USED FOR EDUCATION, SPORTS, CIRCUS, ENTERTAINMENT AND PARKING PURPOSES LAND USED FOR EDUCATION, SPORTS, CIRCUS, ENTERTAINMENT AND PARKING PURPOSES BUILDING USED SOLELY FOR RESIDENTIAL PURPOSES AND BUILDING USED FOR HOTELS, HOSTELS, BOARDING HOUSES, HOLIDAY ACCOMMODATION, CAMPING ETC BUILDING USED SOLELY FOR RESIDENTIAL PURPOSES AND BUILDING USED FOR HOTELS, HOSTELS, BOARDING HOUSES, HOLIDAY ACCOMMODATION, CAMPING ETC (PARTLY RESIDENTIAL PARTLY BUSINESS NOT EXCLUDED)

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 ENTRAPMENT SERVICE TAX - NEW SERVICES COMMENT: COMMENT: SERVICE IN A RENTAL AGREEMENT?SERVICE IN A RENTAL AGREEMENT? TO ADVERSELY AFFECT USERS OF COMMERCIAL PROPERTIESTO ADVERSELY AFFECT USERS OF COMMERCIAL PROPERTIES RECOVERY OF SERVICE TAX IN THE CASE OF EXISTING AGREEMENTSRECOVERY OF SERVICE TAX IN THE CASE OF EXISTING AGREEMENTS ALLOWABILITY OF SERVICE TAX PAID OUT OF OWN POCKET AGAINST INCOME FROM HOUSE PROPERTY?ALLOWABILITY OF SERVICE TAX PAID OUT OF OWN POCKET AGAINST INCOME FROM HOUSE PROPERTY?

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 ENTRAPMENT SERVICE TAX - NEW SERVICES SERVICES PROVIDED BY ANY PERSON TO ANY OTHER PERSON IN RELATION TO THE EXECUTION OF WORKS CONTRACT SERVICES PROVIDED BY ANY PERSON TO ANY OTHER PERSON IN RELATION TO THE EXECUTION OF WORKS CONTRACTEXCEPTIONS: WORKS CONTRACT FOR ROADS, RAILWAYS, AIRPORTS, TRANSPORT TERMINALS, BRIDGES,TUNNELS AND DAMS WORKS CONTRACT FOR ROADS, RAILWAYS, AIRPORTS, TRANSPORT TERMINALS, BRIDGES,TUNNELS AND DAMS PROPOSAL TO LEVY SERVICE 2% OF THE TOTAL VALUE OF WORKS CONTRACT PROPOSAL TO LEVY SERVICE 2% OF THE TOTAL VALUE OF WORKS CONTRACT TO INCLUDE CONTRACTS FALLING WITHIN THE DEFINITION OF WORKS CONTRACT UNDER SALES TAX TO INCLUDE CONTRACTS FALLING WITHIN THE DEFINITION OF WORKS CONTRACT UNDER SALES TAX TO INCLUDE CONTRACTS FOR ERECTION, INSTALLATION OF MACHINERY, EQUIPMENTS ETC, CONSTRUCTION OF NEW BUILDING (INCLUDING RESIDENTIAL BUILDING ), CIVIL STRUCTURE TO INCLUDE CONTRACTS FOR ERECTION, INSTALLATION OF MACHINERY, EQUIPMENTS ETC, CONSTRUCTION OF NEW BUILDING (INCLUDING RESIDENTIAL BUILDING ), CIVIL STRUCTURE REPAIR, RENOVATION, ALTERATION SERVICES, AND TURNKEY PROJECTS INCLUDING EPC PROJECTS REPAIR, RENOVATION, ALTERATION SERVICES, AND TURNKEY PROJECTS INCLUDING EPC PROJECTS COMMENT: COMMENT: INCREASE IN THE COST INCREASE IN THE COST WORKS CONTRACT ALREADY PART OF STATE TAXATION; THIS IMPOSITION TO RESULT IN TO MULTIPLICTY OF TAXES. WORKS CONTRACT ALREADY PART OF STATE TAXATION; THIS IMPOSITION TO RESULT IN TO MULTIPLICTY OF TAXES.

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 ENTRAPMENT SERVICE TAX - NEW SERVICES ANY SERVICES PROVIDED BY TELECOM COMPANIES LIKE DOWNLOADS, CALL HOLD /DIVERT FACILITIES ETC ANY SERVICES PROVIDED BY TELECOM COMPANIES LIKE DOWNLOADS, CALL HOLD /DIVERT FACILITIES ETC RENTING OF MOTOR VEHICLES WITH CAPACITY OF MORE THAN 12 PASSENGERS ( EXCLUSION – EDUCATION INSTITUTIONS) UNDER THE HEAD “RENT-A-CAB” SERVICE RENTING OF MOTOR VEHICLES WITH CAPACITY OF MORE THAN 12 PASSENGERS ( EXCLUSION – EDUCATION INSTITUTIONS) UNDER THE HEAD “RENT-A-CAB” SERVICE HARDWARE CONSULTING UNDER “ CONSULTING ENGINEER” HARDWARE CONSULTING UNDER “ CONSULTING ENGINEER” PURE BUSINESS CONSULTANCY UNDER “MANAGEMENT CONSULTANT” PURE BUSINESS CONSULTANCY UNDER “MANAGEMENT CONSULTANT” CASH MANAGEMENT UNDER “BANKING AND OTHER FINANCIAL SERVICES” CASH MANAGEMENT UNDER “BANKING AND OTHER FINANCIAL SERVICES” GOODS TO INCLUDE “COMPUTER SOFTWARE FOR REPAIR /MAINTENANCE SERVICE” GOODS TO INCLUDE “COMPUTER SOFTWARE FOR REPAIR /MAINTENANCE SERVICE”

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 SERVICE TAX - PROCEDURAL MATTERS SUBMISSION OF DELAYED RETURN WITH PAYMENT OF LATE FEES SUBMISSION OF DELAYED RETURN WITH PAYMENT OF LATE FEES FILING OF REVISED RETURN WITHIN 60 DAYS FROM THE DATE OF FILING OF ORIGINAL RETURN FILING OF REVISED RETURN WITHIN 60 DAYS FROM THE DATE OF FILING OF ORIGINAL RETURN SELF-ADJUSTMENT OF EXCESS SERVICE TAX PAYMENT SELF-ADJUSTMENT OF EXCESS SERVICE TAX PAYMENT

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 BARKING THOUGHTS DON'T ACCEPT YOUR DOG'S ADMIRATION AS CONCLUSIVE EVIDENCE THAT YOU ARE WONDERFUL - ANN LANDERS( ) DON'T ACCEPT YOUR DOG'S ADMIRATION AS CONCLUSIVE EVIDENCE THAT YOU ARE WONDERFUL - ANN LANDERS( ) MY DOG IS WORRIED ABOUT THE ECONOMY BECAUSE ALPO IS UP TO 99 CENTS A CAN. THAT'S ALMOST $7.00 IN DOG MONEY - JOE WEINSTEIN MY DOG IS WORRIED ABOUT THE ECONOMY BECAUSE ALPO IS UP TO 99 CENTS A CAN. THAT'S ALMOST $7.00 IN DOG MONEY - JOE WEINSTEIN

©COPYRIGHT D OSHI, C HATTERJEE, B AGRI & C O 2007 Disclaimer For internal and private circulation only This presentation summarizes only the important proposals made by the Honorable Finance Minister in the Lok Sabha. Whilst every care has been taken in the preparation of this presentation, it might contain errors for which we should not be held responsible. This information as given in this presentation provides a bird’s eye view on the said proposals and thus should not be relied upon for the purposes of economic decisions. Thank You !