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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 – DECEMBER 2012 TM INDEX • Direct Taxation • Indirect Taxation • Corporate & Other Laws • International taxation • Statutory Due Dates for December 2012 Newsletter –December 2012 TM DIRECT TAXATION Index •Four New E-courts to be launched The Income Tax Appellate Tribunal will launch e-courts in four cities from December 10, 2012 to facilitate hearing of cases via video-conferencing. The tribunal, a quasi-judicial body, has set up webcast facilities at Delhi, Mumbai, Nagpur and Ahmedabad, a first in the history of tax judiciary in India. In a note, ITAT said the e-courts will follow the procedures that are laid out for the bench for hearing appeals in an open court. There is no difference in procedures except that the bench and bar are at different places connected electronically. •Rajiv Gandhi Equity Saving Scheme rd The Central Government vide notification no. 51/2012 dated 23 November 2012 has specified all the features of the earlier declared Rajiv Gandhi Equity Saving Scheme. This Scheme shall apply for claiming deduction in the computation of total income of the assessment year relevant to a previous year on account of investment in eligible securities under sub-section (1) of section 80CCG of the Income-tax Act, 1961. The objective of the Scheme is to encourage the savings of the small investors in domestic capital market. The scheme 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 – December 2012 TM DIRECT TAXATION Index •Extension of time to file ITR –V for AY 2010-11 and 2011-12 Vide CBDT Notification No. SO 16(E) dated 4.1.2012, the Director General of Income Tax (System) has extends the time limit for filing ITR-V forms relating to Income Tax Returns filed electronically (without digital signature Certificate) for A.Y. 2010-11 (filed during F.Y. 2011-12) and for A.Y. 2011-12 (filed on or after 1st April, 2011). These ITR-V forms can now be filed upto 31st December, 2012 or within a period of 120 days from the date of uploading of the electronic return data, whichever is later. This direction is issued to mitigate the hardship and grievance of the tax payers who have been prevented by reasonable causes to file the ITR-V in time. •GAAR to be effective from AY 2014-15 General Anti-Avoidance Rules The GAAR (General Anti-Avoidance Rule) provisions have not been put on hold. The Finance Act, 2012 had provided that these provisions shall be effective from the 1st day of April, 2014 and apply to Assessment year 2014-15 onwards Newsletter – December 2012 TM INDIRECT TAXATION Index •Government Plans 2% rise in Excise Duty & Service Tax The Finance Ministry is considering a proposal to raise excise duty and service tax by two per cent to 14 per cent each in the Union Budget for 2013-14. The move is likely to help the ministry collect about Rs 30,000 crore. Certain exemptions may also be rolled back. •Old Service Tax Accounting Codes restored for 120 services Negative List based comprehensive approach to taxation of services came into effect from the first day of July, 2012. Accounting code for the purpose of payment of service tax under the Negative List approach ["All Taxable Services"] was prescribed at that time in a circular. Subsequent to the issuance of the Circular, suggestions were received from the field formations that the service specific old accounting codes should be restored, for the purpose of statistical analysis; also it was suggested that list of descriptions of services should be provided to the taxpayers for obtaining registration. These suggestions were examined and a decision has been taken to restore the service specific accounting codes. Accordingly, a list of 120 descriptions of services for the purpose of registration and accounting codes corresponding to each description of service for payment of tax is been restored vide Circular No.165/16/2012 dated 20th November 2012. Newsletter – December 2012 TM INDIRECT TAXATION Index •MVAT Audit due date extended The Government of Maharashtra vide notification no. VAT-1512/CR-139/taxation 1 dated 21st Novermeber 2012 deferred the submission of VAT Audit Report under MVAT ACT to 15 th January 2013 from the scheduled due date of 30th November 2012. Newsletter – December 2012 TM CORPORATE AND OTHER LAWS Index • Cost Auditors to intimate their appointment to ROC till 16th December 2012 Ministry of Corporate Affairs vide General Circular No.15/2011, dated April 11, 2011 had prescribed a revised procedure to be followed for appointment of cost auditors. As per the revised procedure, the cost auditor, within 30 days of receipt of the letter of appointment from the company, inform his appointment to the Central Government in the prescribed Form 23D along with a copy of such appointment. It is, however, observed that a large number of cost auditors have defaulted in filing the required Form 23D within the stipulated time. In many cases, the default period is even more than a year. Keeping in view the initial operation of the revised procedure, all the defaulting cost auditors are requested to file their required Form 23D that have already become due till date, by December 16, 2012 positively. In case of any further default, names of such defaulting members shall be sent to the Institute on December 17, 2012 intimating the Institute to initiate Disciplinary Proceedings against them under the relevant provisions of Cost and Works Accountants Act, 1959. Newsletter – December 2012 TM INTERNATIONAL TAXATION Index • Authority for Advance Ruling - not bound by past orders The Authority for Advance Ruling (AAR) has held that it is not bound by its earlier orders and can take a contrary view if there are sufficient reasons to believe that the earlier rulings were incorrect. AAR is bound only by the Supreme Court decisions AAR is a quasi-judicial body presiding over tax disputes involving foreign companies. While hearing an application by Mauritius-based company, which had sold shares that resulted into capital gains, AAR held that transfer pricing rules would apply even if the capital gains are not liable to tax in India under the India-Mauritius tax treaty. Newsletter – December 2012 TM STATUTORY DUE DATES FOR DECEMBER 2012 •Statutory Due Dates Calendar for December 2012 Due Date Statutory Compliance 5th December 2012 Payment of Service Tax/ Excise duty 7th December 2012 Payment of TDS 15th December 2012 Payment of Advance Income Tax 15th December 2012 Payment of Provident Fund contribution/ Profession Tax 21st December 2012 Payment of VAT Newsletter – December 2012 Index 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 – December 2012