Transcript Slide 1

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NEWSLETTER – MARCH 2014
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INDEX
• Direct Taxation
• Indirect Taxation
• Corporate and Other Laws
• International Taxation
• Statutory Due Dates for March 2014
Newsletter –March 2014
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DIRECT TAXATION
Index
• MF unit redemption won’t attract tax
The Central Board of Direct Taxes has clarified that redemption or repurchase of mutual fund units would not
attract taxes (under distributed income), as such income is not in the nature of income distributed to unit-holders.
The CBDT also said bonus units at the time of issue would not be subjected to additional income tax since an
issue of bonus units was not akin to dividend distribution. It added that the Income Tax Act prescribed that the
cost of acquisition of bonus units should be treated as ‘nil’ for the purposes of computation of capital gains tax.
• Non-Filing of ITR-V in returns with refund claims-relaxation of time- limit for filing
ITR-V and processing of such returns -regarding.
In order to mitigate the grievances of the taxpayers pertaining to non-receipt of tax refunds, Central Board of
Direct Taxes, in exercise of powers under section 119(2)(a) of the Act, hereby further relaxes and extends the date
for filing ITR-V Form for Assessment years 2009-10, 2010-11 and 2011-12 till 31.03.2014 for returns e-Filed
with refund claims within the time allowed under section 139 of the Act. Further it says that, such returns shall be
processed within a period of six months from end of the month in which ITR-V is received and the intimation of
processing of such returns shall be sent to the assessee concerned as per laid down procedure.
Newsletter – March 2014
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INDIRECT TAXATION
Index
• Interim Budget
Lok Sabha on Wednesday 19.02.2014 passed the Interim Budget for the financial year 2014-15 .The following
are the major highlights of amendments in Indirect Taxes:
Amendments in Excise Duty
1.
2.
3.
The excise duty structure on mobile handsets has been restructured so as to provide that all mobile handsets
will attract 1% excise duty if CENVAT benefit is not availed of. The duty will be 6% if CENVAT benefit is
availed of. Consequently, all imported mobile handsets shall attract 6% CVD
The general excise duty on all machinery & equipment, appliances etc and parts thereof falling under
Chapters 84 and 85 of the Central Excise Tariff has been reduced from 12% to 10%.
The excise duty on small cars, motor cycles, scooters, commercial vehicles and trailers has been reduced
from 12% to 8% and on SUVs from 30% to 24%. The excise duties on large and mid segment cars have been
reduced from 27% and 24% to 24% and 20% respectively. In line with the duty reduction on commercial
vehicles, the excise duty on chassis has been reduced appropriately. Duty has also been reduced on hybrid
motor vehicles, hydrogen vehicles, etc.
Newsletter – March 2014
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•
INDIRECT TAXATION
Index
Amendments in Customs
1) Full exemption from customs duty on pulses valid till 31.03.2014 has been extended by another 6 months
i.e.up to 30.09.2014
2) CVD exemption hitherto available on specified road construction machinery has been withdrawn. These
specified machinery will henceforth attract CVD and SAD. Exemption from the basic customs duty will
however continue
3) The basic customs duty structure on non-edible grade industrial oils and its fractions, palm stearing, fatty
acids and fatty alcohols has been rationalized at 7.5%
4) LNG consumed in the authorized operations in the ONGC SEZ unit at Dahej and the remnant LNG cleared
into the domestic tariff area (DTA) has been exempted from basic customs duty and CVD
5) A concessional basic customs duty of 5% [CVD (Nil) + SAD (Nil)] has been provided to capital goods
imported by Bank Note Paper Mill India Private Limited. The exemption is valid up to 3 1.12.2014
6) Human embryo has been fully exempted from customs duty.
Amendments in Service Tax
All service related to Rice like handling, storage, warehousing, transport, milling and services provided by
cord blood bank by way of preservation of stem cells or any other service related to such preservation are
exempt from service Tax.
Newsletter – March 2014
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CORPORATE AND OTHER LAWS
Index
• Use of word ‘National’ in the names of Companies or Limited Liability
Partnerships (LLPs)
It has come to the knowledge of Ministry of Companies Affairs that Companies / Limited Liability Partnerships
are being registered with the word ‘National’ in their names. It is being intimated that no company should be
allowed to be registered with the word ‘National’ as part of its title unless it is a government company and the
Central / State government(s) has a stake in it. This should be stringently enforced by all Registrar of Companies
(ROCs) while registering companies. Similarly, the word ‘Bank’ may be allowed in the name of an entity only
when such entity produces a ‘No Objection Certificate’ from the RBI in this regard. By the same analogy the
word “stock Exchange” or “Exchange” should be allowed in name of a company only where ‘No Objection
Certificate’ from SEBI in this regard is produced by the promoters.
Newsletter – March 2014
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INTERNATIONAL TAXATION
Index
•OECD unveils mechanism to combat tax evasion
Global economic body OECD on Thursday, February 13, unveiled a new “game-changing” mechanism to
combat the menace of offshore tax evasion, a protocol to which India is a signatory with the purpose of tackling
black money. The Organization for Economic Cooperation and Development have formally presented the
standard for the endorsement of G20 finance ministers during a February 22-23 meeting in Sydney in Australia,
the world body, whose economic policies are followed by over 120 countries.
The G20 invited the OECD to develop a global standard on automatic exchange of information in 2013 and
remains the driving force behind the move toward greater tax transparency worldwide. India has already signed
the OECD's global standard for automatic exchange of information between tax authorities two years back and
once the new format is implemented, the country will follow the new protocols envisaged in it.
Newsletter – March 2014
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STATUTORY DUE DATES FOR MARCH 2014
•Statutory Due Dates Calendar for March 2014
Due Date
Statutory Compliance
5th March 2014
Payment of Service Tax/ Excise duty
7th March 2014
Payment of TDS
15th March 2014
Payment of Provident Fund contribution/
Profession Tax
15th March 2014
Payment of Advance Income Tax
21st March 2014
Payment of ESIC/ MVAT
Newsletter – March 2014
Index
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Newsletter –March 2014