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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 –AUGUST 2013 TM INDEX • Direct Taxation • Indirect Taxation • Corporate and Other Laws • International Trade • Statutory Due Dates for August 2013 Newsletter –August 2013 TM DIRECT TAXATION Index • Filing of Tax Audit Report must for high income professionals Professionals including lawyers, doctors, film actors, singers, interior decorators, architects,company secretaries and others, whose total gross receipts/turnover exceeds Rs.1 crore and/or whose professional annual fee income exceeds Rs.25 lakh in a fiscal 2012-13 will have to mandatory e-file the tax audit report from the 2013-14 assessment year. According to the latest directions issued by the income tax department, all such assessees will need to appoint a chartered accountant (CA) who will undertake the tax audit and e-file the same with digital signature. Any violation or inability to e-file the same will attract a penalty of 0.5% of the turnover/gross receipts of the assessee subject to a maximum penalty of R1,50,000. • Due date for Return filing Extended to 31st August 2012 The government on Wednesday 31st August 2013 extended the last date for filing income-tax returns by five days to 5 August 2013.The due date, which was on Wednesday, has been extended in wake of “unprecedented surge” in number of income-tax returns being filed electronically.“As a measure of taxpayers convenience, it has been decided to extend the due date of filing of returns from 31 July 2013 to 5 August 2013,” the finance ministry said on Wednesday. Newsletter – August 2013 TM INDIRECT TAXATION Index •Service Tax to make LIC Policies pricier From October, LIC policies will cost more. Life Insurance Corporation, which accounts for 83 per cent of the market share, will levy service tax of around 3 per cent on all non-unit-linked products beginning October 1. This means if the annual premium for your money-back policy from LIC is Rs 10 lakh, one will have to pay an additional Rs 30,000. While private insurers add a service tax component to the premium paid by customers, LIC has not been levying the tax on its popular endowment and money-back plans. From October, however, all LIC policies will attract a separate service tax. •Maruti SX4 and Toyota Corolla Altis May cost less as excise cut to 27% Maruti SX4 and Toyota Corolla Altis may get cheaper as the Revenue Department clarified that these car models will not attract higher excise duty. The Central Board of Excise and Custom said these models, which are known as sedans, will attract 27 per cent excise duty, as applicable to large cars and not 30 per cent, as announced in the Budget. This comes after the motor vehicle manufacturers sought clarification as to whether the excise duty of 30 per cent is applicable on these sedans. The Budget had raised excise duty to 30 per cent on sports utility vehicles (SUVs) with engine capacity of over 1500 cc, length exceeding 4000 mm, and having a ground clearance of 170 mm TM INDIRECT TAXATION Index •Import Duty on sugar raised to 15% The government hiked import duty on sugar to 15 percent from 10 percent to help the industry clear Rs 9,000 crore cane arrears to farmers-- a move that would make the sweetener costlier for the common man. In a notification issued by the Central Board of Excise and Customs (CBEC), the duty of both raw and white (refined) sugar have been raised to 15 percent. The sugar imports have been putting pressure on domestic prices and have prevented millers from clearing cane arrears to farmers. Currently, millers in Uttar Pradesh are selling sugar to wholesalers at rates lower than even the production cost, according to the industry experts. Newsletter – August 2013 TM CORPORATE AND OTHER LAWS Index •Migration of PDCs and EMIs to ECS RBI has directed all banks not to issue fresh or additional PDCs (Post Dated Cheques) and EMIs (Equated Monthly Installment) cheques to be accepted where the facility of ECS (Electronic Clearing System) is available. And where the ECS is not available only cheques complying with CTS 2010standard to be obtained. •Bank Rate Increased On 15th July 2013 bank rate stand adjusted by 200 basis point from 8.25% to 10.25% w.e.f July 15. Also the penal interest rates on shortfall in reserve requirements (depending duration of shortfall) are revised to 13.25% from 15.25% •Foreign Investment in India RBI vide A.P. (DIR Series) Circular No. 1 dated 4th July 2013 prescribed the guidelines for calculation of total foreign investment in Indian companies, transfer of ownership and control of Indian companies and downstream investment by Indian companies. Any foreign investment already made in accordance with the guidelines in existence prior to February 13, 2009 would not require any modification to conform to these guidelines. All other investments, after the said date, would come under the ambit of these new guidelines. Newsletter – August 2013 TM INTERNATIONAL TRADE Index •India Albania sign DTAA The Union Government of India and Government of Albania on 8 July 2013 signed an Agreement for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to the Taxes on Income and on Capital (DTAA). The agreement was signed to provide tax stability for the residents of both the nations. It would also facilitate mutual economic cooperation between the two countries. The signed agreement would also stimulate the flow of investment, technology and services between India and Albania. The agreement incorporates provisions for effective exchange of information between tax authorities of the two countries, which also includes exchange of banking information and supply of information without recourse to domestic interest. Newsletter – August 2013 TM STATUTORY DUE DATES FOR AUGUST 2013 •Statutory Due Dates Calendar for August 2013 Due Date Statutory Compliance 5th August 2013 Payment of Service Tax/ Excise duty 7th August 2013 Payment of TDS 15th August 2013 Payment of Provident Fund contribution/ Profession Tax 21st August 2013 Payment of ESIC/ MVAT Newsletter – August 2013 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 –August 2013