Transcript Slide 1

TM
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 –APRIL 2012
(Budget Special)
TM
INDEX
• Direct Taxation
• Indirect Taxation
• Corporate and Other Laws
• International Trade and Finance
• Statutory Due Dates for March 2012
Newsletter –April 2012
TM
DIRECT TAXATION
Index
The Finance Minister presented the budget on 16 th March 2012. Following are the highlights of the same:
•
The Finance Minister proposed raising the Income tax exemption limit for individuals to Rs 2 lakh per
annum from Rs 1.80 lakh. Further he also increased the limit to Rs 10 lakh under the 20 per cent tax slab.
The current limit is Rs 8 lakh.
•
Individual will have to pay 10 per cent tax on income between Rs 2 lakh and Rs 5 lakh; 20 per cent between
Rs 5 lakh and Rs 10 lakh; and 30 per cent for above Rs 10 lakh.
•
The exemption limit for the senior citizens between 60 and 80 years of age will be Rs 2.50 lakh; 10 per cent
will be levied on income between Rs 2.5-5 lakh, 20 per cent between Rs 5-10 lakh and 30 per cent above
Rs 10 lakh.
•
For very Senior Citizens (80 years and above), the income tax exemption limit will be Rs 5 lakh; 20 per
cent will be levied on income between Rs 5-10 lakh and 30 per cent for above Rs 10 lakh.
Newsletter – April 2012
TM
DIRECT TAXATION
Index
•
No deduction is available under Sec 80C towards insurance premium on the insurance policies issued
after 1st April 2012 where premium exceeds 10% of the actual capital sum assured.
•
The deduction for spending up to Rs 5,000 on preventive medical checkups to be allowed within
80Dlimit. These could include blood tests for diabetes, cardio-vascular tests and so on. Further 80D
will help more elderly individuals claim higher deductions on health insurance premium. Section 80D
allows tax relief of up to Rs 15,000 on health insurance premium paid for self, spouse and children.
One can further claim tax deduction of Rs 15,000 if he/she is paying premiums for parents' health
policy. If the individual (or parents) are senior citizens, this limit goes up to Rs 20,000. Earlier, only
individuals above 65 years were considered as senior citizens for this benefit. The Budget has lowered
the age to 60 years.
•
Budget proposes to leave savings bank interest up to Rs 10,000 per year out of the tax net.
•
The Finance Minister has announced the Rajiv Gandhi Equity Savings Scheme that will allow
deduction of 50% to new retail investors with an annual income of less than Rs 10 lakh. To claim the
same, they will have to invest up to Rs 50,000 directly in equities, with the maximum deduction
amounting to Rs 25,000.
Newsletter – April 2012
TM
DIRECT TAXATION
Index
•
Cash donations in excess of Rs 10,000 will not be eligible for deduction under Section 80G & 80GGA.
•
Long term capital gains on sale of residential property not taxable where the net consideration
is reinvested in the equity of manufacturing small and medium enterprises ad where other conditions
are met.
•
The threshold limit for getting accounts audited has been proposed to be raised to Rs 1 Crore from Rs
60 Lakh for businessmen and to Rs 25 lakh from Rs 15 lakh for professionals.
•
The threshold limit of total turnover or gross receipts required to be covered under the presumptive
tax has also been proposed to be raised from Rs. 60 lakh to Rs 1 crore.
•
Tax Returns are made compulsory for individuals owning assets abroad. Individuals will also have
to present records of such assets for up to 16 years if demanded by tax officials.
Newsletter – April 2012
TM
DIRECT TAXATION
Index
•
The Finance Minister has imposed TDS on real estate deals and gold transactions in cash.1% tax on cash
transactions of bullion and jewellery worth over Rs 2 lakh will be deducted at source. Any transfer of
immovable property, except agriculture land, worth over 50 lakh in urban areas and over 20 lakh in other
areas will be subject to 1% TDS. These withholding taxes on gold and property will be effective from July
and October respectively.
•
VDIS (Voluntary Disclosure of income Scheme) is been introduced and been given the time till 30 th June
2012 to report the black money. The government has proposed a tax ranging from 30% to 90% on any
unexplained sum of money, credit, investments or expenditures discovered by tax officials during the course
of a search. The holder will be liable to pay this tax irrespective of the income bracket.
•
It is proposed to amend Sec 194Jto provide that tax is required to be deducted on remuneration to be paid to
Director at the rate of 10% of such remuneration. (applicable from 1 st July 2012 )
Newsletter – April 2012
TM
DIRECT TAXATION
Index
•
It is proposed that a person other than a Company who has claimed deduction under any section (other than
Sec 80P)included in Chapter VI A under the heading C-Deduction in respect of certain incomes or under
Section 10AA and whose income is more than Rs 20lakh shall be liable to pay Alternate Minimum Tax
(AMT). The tax is proposed to be 18.5%.
•
Special Deposit Scheme For Non-Government PF, Superannuation & Gratuity Funds
Notification no. 5(4)-B(PD)2011dated 13th March 2012 notified that the deposits made under the Special
Deposit Scheme for Non-Government Provident, superannuation and gratuity funds shall with effect from
1st December 2011 and until further orders bear interest at 8.6%per annum.
Newsletter – April 2012
TM
INDIRECT TAXATION
Index
Service Tax
•The rate of Service tax has been increased from 10% to 12% (with effect from 1 st April 2012).
•Service Tax rate for Composition scheme for works contract service has been increased to 4.8%from 4% (with
effect from 1st April 2012).
•Rate of Service Tax on life insurance policies is increased on 1 st year premium from 1.5% to 3%. For 2nd year it
is 1.5%. (with effect from 1st April 2012).
•Time limit for issuance of invoice increased from 14 days to 30 days and 45 days in case of banking and
financial institutes.
•Common registration format for service tax and central excise is proposed. And simplified one page common
return for service tax and excise is introduced.
•The rate of CENVAT reversal for exempt services has been increased to 6% from 5% presently (with effect from
1st April 2012).
•Now the taxation will be based on what is popularly known as “Negative List of services”. It means any activity
meets the characteristics of ‘service' it is taxable unless specified in negative list comprising 17 heads.
•Also 9 services has been specified as declared services.
•The word “service” is defined.
Newsletter – April 2012
TM
INDIRECT TAXATION
•
•
•
•
•
•
Index
Draft of guidance paper on ‘place of provision of service’ is released. They will substitute existing Export
of Service Rules and Taxation of Service Rules.
The scheme is being introduced for three services (namely hiring of a motor vehicle designed to carry
passengers, supply of manpower for any purpose, works contract service) where the service provider is
either an individual or a firm or LLP and a recipient is a body corporate, both service provider as well as
recipient are liable to pay service tax.
At present service provider can adjust only 2lakh out of excess service paid/ deposited. Now this
adjustment is allowed without any monetary limit.
Monthly and quarterly returns are introduced based on service tax liability and type of entity.
Now the interest will be levied only when the wrongly availed credit is utilized.
Limitation period of show cause notice which is one year at present is been extended to 18 months.
Newsletter – April 2012
TM
INDIRECT TAXATION
Index
Customs
•
DGFT vide Notification no. 106(RE-2010) 2009-14 DATED 12TH March 2012 has withdrawn the earlier
Notification no. 102 imposing ban on export of cotton and now the export of cotton is free subject to the
condition prior registration of contract with DGFT.
•
The method of computation of Education cess and secondary and Higher Education Cess on imported
goods is being simplified. The portion of cesses leviable on the CVD portion of customs duty is being
exempted so as to avoid computation of such cess twice.
•
The condition is being inserted requiring the importer of specified goods to declare state of destination
where they are to be sold for the first time after import and VAT registration number. This will apply to
goods imported on or after 1st May 2012.
•
CENVAT credit rules are being amended to permit transfer of unutilized credit of SAD lying in balance at
the end of each quarter to other registered premises of the same manufacturer. (w.e.f 1 st April 2012)
Newsletter – April 2012
TM
INDIRECT TAXATION
•
•
•
•
Index
With the aim of keeping a tab on the high current account deficit, finance minister has proposed to raise the
import duty on gold and platinum. The FM doubled basic customs duty on standard gold and platinum bars
from the existing two per cent to four per cent, and on non-standard gold from five per cent to 10 per cent.
The duty increase was also extended to gold ore/concentrate and ore bars for refining from one per cent to
two per cent.
The basic customs duty /CVD is increased from 60% to 75% on completely built units of large cars
/MUVs/SUVs permitted for import without type approval.10%to 30% on bicycles and 20% on parts of
bicycles. All these increase in duties will take immediate effect (i.e. from midnight of 16 th March 2012)
Full customs duty exemption is been provided to new textile machinery and concessional 5% duty is
available to specified textile machinery.
Mega power plant equipments imports will attract 21% customs duty.
Newsletter – April 2012
TM
INDIRECT TAXATION
Index
Excise
•
•
•
•
•
•
The standard rate of Central Excise Duty for non-petroleum products has been enhanced from 10% to 12%
ad valorem.
The merit rate of excise duty for non-petroleum goods that attract 5% duty has been increased to 6%.
Similarly rate of duty of 1%imposed on 130 items has been increased from 1% to 2%.
1% levy of Excise Duty on precious metal jewellary will now be applicable on branded as well as
unbranded goods (except silver jewellary)
Excise duty on small cars is hiked from 10 to 12% and on big cars it is hiked from 22 to 24%.
Excise Duty on environment friendly goods has been reduced from 10% to 6%,
Newsletter – April 2012
TM
CORPORATE AND OTHER LAWS
Index
• Registration of Companies or LLPs which have one of their objects is to carry on the
profession of CA, CWA, CS, Architecture etc.
Vide General circular no. 2/2012, MCA said that at the time of incorporation of companies where one of the
objects is to carry on the business of banking, insurance or to practice the profession of CA, CS, CWA then the
concerned Registrar of Companies shall incorporate the same only on production of in-principle approval/NOC
from the concerned regulator/professional institute. And where business or profession is of Architecture the
Registrar shall incorporate the same on production of in-principle approval/NOC from concerned regulator.
•PAN based DIN
Ministry of Corporate Affairs vide General Circular No. 2/2012 dated 9th March 2012 has further extended the
time limit for obtaining PAN based DIN by the directors to 30th April 2012.
Newsletter – April 2012
TM
CORPORATE AND OTHER LAWS
Index
•Bank Rate increased
RBI announced that with effect from the close of business of 13 th February 2012, the bank rate will stand
increased by 350 basis points i.e. 6% to 9.5%p.a.
•Prior intimation to RBI for raising the aggregate FII and NRI Limits for investment
under the Portfolio Investment Scheme
RBI vide Circular no. 94 dated March 19, 2012 states that the Indian Company raising the aggregate FII
investment limit of 24%to the sectoral cap/statutory limit as applicable to the company or raising the NRI Limits
for investment of 10% to 24%should necessarily intimate the same to RBI immediately along with the
Certificate from the company Secretary stating that all relevant provisions of FEMA and Foreign Direct Policy
as amended from time to time have been complied with.
Newsletter – April 2012
TM
INTERNATIONAL TRDAE AND FINANCE
Index
•Easier ECB pledging norms to help Infra companies
In a move, which could provide additional liquidity to Indian companies and ease borrowing from outside India,
the government is set to allow promoters of Indian companies to pledge shares against external commercial
borrowings (ECBs). The move will also ensure additional security to the ECB lenders and enable infrastructure
companies, who are the highest recipients of overseas loans, raise ECBs easily. The move is part of the new
Foreign Exchange Management Act (FEMA) guidelines, which is being amended after 10 years. However, RBI
has directed that no person would be allowed to pledge shares if he doesn’t have a no-objection certification
(NOC) from a bank, which is an authorised dealer.
Newsletter – April 2012
TM
STATUTORY DUE DATES FOR APRIL 2012
Index
•Statutory Due Dates Calendar for April 2012
Due Date
Statutory Compliance
5th April 2012
Payment of Service Tax/ Excise duty
7th April 2012
Payment of TDS
15th April 2012
Payment of Provident Fund contribution/
Profession Tax
15th April 2011
Filing of Quarterly TDS Return ( January to
March Qtr)
25th April 2012
Filing of Service tax Return
21st April 2012
Payment of ESIC/ MVAT
Newsletter – April 2012
Get in Touch
www.nyaasa.com
+91.98228 70043
+91.98231 18326
+91.20.3234 1738
+91.20.6500 8738
[email protected]
TM
THANK YOU !
Newsletter –April 2012