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Kansal Bansal & Goel (Chartered Accountants), 1668-A, Thana Road, Najafgarh (2026)

10/07/2014

Overview of Finance Budget Highlights 2014-15
BUDGET HIGHLIGHTS
Excise
• Duty on ci******es increased from 11% to 72%
• Duty on pan masala increased from 12% to 16%
• Duty on gutkha, chewing to***co increased from 60% to 70%
• Duty on unmanufactured to***co increased from 50% to 55%
• Duty on footwear costing upto Rs.1000 and above Rs.500 reduced to 6% from 12%
• Levy of an additional duty of excise at 5 % on aerated waters containing added sugar
• Concessional excise duty of 2 percent without Cenvat benefit and 6 percent with
CENVAT benefit on sports gloves
• Duty on food processing/packaging machinery, solar energy/power machinery,
machinery & equipments of compressed biogas plants, energy renewable & development
devices to be reduced
Customs
• Basic customs duty on non-fatty acids, glycerine to be reduced
• Duty of LCDs, LEDs on TV s below 19 inches to be reduced to Nil
• Free baggage allowance increased from Rs.35,000 to Rs.45,000
• Duty on stainless steel products increased to 7.5% from 5%
• Duty of 10% on certain telecommunication items imposed
• Color picture tubes to be exempted from customs duty
Income Tax
• 10 year tax holiday for power companies starting production and distribution on or before
March 31, 2017
• 60 more Ayakar Seva Kendras to be opened during the current financial year to promote
excellence in service delivery
• No changes in tax rate, surcharge or cess rates
• Increase in personal tax exemption limit from Rs.2,00,000 to Rs.2,50,000 for people less
than 60 years; to Rs.3,00,000 for senior citizens
• No changes in slab rate for senior citizen of or above the age of 80 years
• Deduction limit u/s 80C increased from Rs 1,00,000 to Rs 1,50,000
• Maximum Limit u/s 24(b) for Interest on Home Loan increased to Rs.2,00,000 from
Rs.1,50,000 for self occupied houses
• Investment allowance at 15% for 3 yrs to manufacturing firms which invest more than Rs
25 crore in plant and machinery Rs 1000 crore over and above amount in interim budget
to improve rail connectivity in Northeast India
• Annual deposit in PPF can made upto Rs.1,50,000 instead of just Rs.1,00,000
• Income arising to foreign portfolio investors from transaction in securities to be treated as
capital gains
• The eligible date of borrowing in foreign currency extended from 30.06.2015 to
30.06.2017 for a concessional tax rate of 5 percent on interest payments. Tax incentive
extended to all types of bonds instead of only infrastructure bonds
• Use of multiple year data for comparability analysis under transfer pricing regulations
• Rate of tax on long term capital gains increased from 10% to 20% on transfer of units of
Mutual Funds, other than equity oriented funds
• In case of non deduction of tax on payments, 30% of such payments will be disallowed
instead of 100%
Service Tax
• Internet & Mobile Advertisement & Broadcasting to be taxable
• Loading, unloading, storage, warehousing & transportation of cotton, whether grinned or
baled to be exempted
• Services by Radio Taxis to be taxable
• Services by Air Conditioned Contract Carriages & technical testing of newly developed
drugs on human participants to be taxable
• Micro Insurance (under negative list) would cover life insurances where the sum assured
does not exceed Rs.50,000 per life insured
• CENVAT credit for rent-a-cab & tour operator services to be allowed

11/01/2014

STRING OPERATION BY AAJ TAK on activities happening in Delhi VAT Department.

Commissioner of VAT has issued the circular asking its officers to maintain highest standards of integrity and has also urged Delhi Sales Tax Bar Association to bring specific cases of malpractices and illegal gratification to the knowledge, so that stringent action can be taken against such officer / official.

Hope for a bright future.

http://dvatonline.gov.in/Docs/Circulars/21924.pdf

31/07/2013

Income tax return filing due date has been extended from 31st July to 5th Aug 2013.

28/02/2013

PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
****
HIGHLIGHTS OF THE BUDGET

New Delhi: Phalguna 09, 1934
February 28, 2013

The Union Budget for 2013-14 aims at higher growth rate leading to inclusive and sustainable development as ‘mool mantra’

• A surcharge of 10 percent on persons (other than companies) whose taxable income exceeds Rs.1 crore have been levied.
• Income limit under Rajiv Gandhi Equity Savings Scheme (RGESS) will be raised from Rs. 10 lakh to Rs. 12 lakh.
• First home loan from a bank or housing finance corporation upto Rs. 25 lakh entitled to additional deduction of interest upto Rs. 1 lakh.
• Relief of Rs. 2000 for the tax payers in the first bracket of 2 to 5 lakhs.
• Finance Minister makes three promises: to women, youth and the poor.
• Nirbhaya Fund to empower women and to keep them safe and secure.
• Proposal to set up India’s first Women’s Bank as a public sector bank.
• Rs. 1,000 crore for skill development of ten lakh youth to enhance their employability and productivity.
• Direct Benefit Transfer (DBT) Scheme to be rolled out throughout the country during the term of UPA Government.
• Fiscal Deficit for 2013-14 is pegged at 4.8 percent of GDP. The Revenue Deficit will be 3.3 percent for the same period.
• Plan Expenditure placed at Rs. 5,55,322 crore. It is 33.3 percent of the total expenditure while Non Plan Expenditure is estimated at Rs. 11,09,975 crore. The plan expenditure in 2013-14 will be 29.4 percent more than the RE of the current year i.e. 2012-13.
• Substantial rise in allocation to the social sector. Allocation for Rural Development Ministry raised by 46 percent to Rs. 80,194 crore.
• The target for farm credit for 2013-14 has been set at Rs. 7,00,000 crore against Rs. 5,75,000 crore during the current year.
• Rs. 10,000 crore earmarked for National Food Security towards the incremental cost.
• Education gets Rs. 65,867 crore, an increase of 17 percent over RE for 2012-13.
• ICDS gets Rs. 17,700 crore. This is 11.7 percent more than the current year.
• Drinking water and sanitation will receive Rs. 15,260 crore. Rs. 1,400 crore is being provided for setting up water purification plants to cover arsenic and fluoride affected rural areas.
• Health and Family Welfare Ministry has been allotted Rs. 37,330 crore. National Health Mission will get Rs. 21,239 crore which represents 24.3 percent over the RE.
• The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) will receive Rs. 14,873 crore as against RE of Rs. 7,383 crore in the current year.
• Defence has been allocated Rs. 2,03,672 crore.
• Rs. 3,511 crore have been earmarked to Minority Affairs Ministry, 60 percent higher than RE for 2012-13.
• The Government will encourage Infrastructure Debt Fund (IDF) and allow some institutions to raise tax free bonds upto Rs. 50,000 crore which is 100 percent more than the current year.
• India Infrastructure Finance Corporation (IIFC), in partnership with ADB will help infrastructure companies to access bond market to tap long term funds.
• Proposal to launch Inflation Indexed Bonds or Inflation Indexed National Security Certificates to protect savings from inflation.
• On oil and gas exploration policy, the Budget proposes to move from the present profit sharing mechanism to revenue sharing. Natural gas pricing policy will be reviewed.
• On coal, the Budget proposes adoption of a policy of pooled pricing.
• Benefits or preferences enjoyed by MSME to continue upto three years after they grow out of this category.
• Refinancing capacity of SIDBI raised to Rs. 10,000 crore.
• Technology Upgradation Fund Scheme (TUFS) for textile to continue in 12th Plan with an investment target of Rs. 1,51,000 crore.
• Rs. 14,000 crore will be provided to public sector banks for capital infusion in 2013-14.
• A grant of Rs. 100 crore each has been made to 4 institutions of excellence including Aligarh Muslim University, Banaras Hindu University, Tata Institute of Social Sciences, Guwahati and Indian National Trust for Art and Cultural Heritage (INTACH).
• New taxes to yield Rs. 18,000 crore.
• To***co products, SUVs and Mobile Phones to cost more.
• ‘Voluntary Compliance Encouragement Scheme’ launched for recovering service tax dues.
• Rs. 9,000 crore earmarked as the first installment of balance of CST compensations to different States/UTs.

****

21/02/2013

If you are earning an annual salary of Rs 15 lakh and above, chances are that you may need to get a mandatory authentication certificate from chartered accountants (CAs) while filing your income-tax returns (ITRs) from next year. Debobrat Ghose reports.

06/02/2013

Ministry of Corporate Affairs acknowledges that services on MCA 21 are not of the fullest satisfaction of the stakeholders for last few days. The Ministry is seized of the matter and taking all necessary steps for smooth functioning of MCA21. Further that Ministry will consider appropriate & due waiver of the additional fee or any other issue being faced by stakeholders due to non-filing of information because of problems in MCA21 system in last few days.

14/01/2013

In a relief to overseas investors, the government has postponed the implementation of the controversial anti tax avoidance provisions, GAAR (General Anti Avoidance Rules), by two years to April 1, 2016.

"Having considered all the circumstances and relevant factors, the government has ...decided that provisions of Chapter 10A of the Income Tax Act (dealing with GAAR) will come into force from April 1, 2016 as against April 1, 2014," Finance Minister P Chidambaram said today.

The GAAR provisions, introduced by the then Finance Minister Pranab Mukherjee in the Budget 2012-13, were aimed at checking tax avoidance by overseas investors. The proposal, however, created controversy, with investors expressing apprehensions that it would result in unnecessary harassment by tax authorities.

The decision to postpone the implementation, Mr Chidambaram said, follows the recommendations of the Shome Committee which was set up by Prime Minister Manmohan Singh in July last year to look into investor concerns.

The government, Mr Chidambaram added, has accepted the major recommendations of the panel with some modifications.

"The modifications that we have done are fair, non-discriminatory, just and strike a balance between interest of revenue and interest of investors. So, all apprehensions should now be set addressed," he said.

The GAAR provisions would override the double taxation avoidance agreement (DTAA) benefits if the arrangements were intended solely to evade taxes, the Finance Minister also said.

10/01/2013

In the case of Katrina Kaif (film Actress) vs. Commissioner of Service Tax Mumbai- I, the Hon’ble CESTAT (Mumbai Bench) vide order no. A/670/2012/CSTB/C-I, Appeal No. ST/387/2011, dated 09.10.2012 {2012(12) TMI 579- CESTAT- MUMBAI} has held that merely by paying service tax liability under wrong head does not mean that service tax liability has not been discharged and has to be deposited again in correct category.

Further, the Hon’ble CESTAT has also clarified that the assessee means a person who is liable to pay service tax and includes his agent.

In the instant case Katrina Kaif appointed M/s Matrix India Entertainment Consultants (P) Limited as her agent to receive amount of consideration for promotion of the product and to discharge the service tax liability on behalf of her.

M/s Matrix has discharged the service tax liability under the category of “Advertisement Agency Service” under which the agent was registered with the service tax department, whereas the department alleged that the category in which the assessee, Katrina Kaif, was liable to pay was “Business Auxiliary Services”. The Adjudicating authority further alleged that the assessee has to discharge again the service tax liability under BAS.

In this regard the Hon’ble CESTAT has clarified that depositing service tax under wrong category does not mean that M/s Matrix has not duly paid the service tax on behalf of the appellant, Ms. Katrina Kaif.

Hence, even if service tax has been deposited in wrong category, the adjudicating authority in no case can demand service tax again under the correct category. The Hon’ble Tribunal has decided the case in the favour of the assessee.

Hope the information will assist you in your Professional endeavors.

19/12/2012

During the year 2010-11, 2,53,277 companies have not filed their Balance Sheets and Annual Returns.

Giving this information in written reply to a question in the Lok Sabha today Shri Sachin Pilot, Minister of Corporate Affairs, said that as per the provisions of Section 220/162 of the Companies Act, 1956 prosecutions are launched by the respective Registrar of Companies against the erring companies.

The Ministry of Corporate Affairs has issued guidelines for “Fast Track Exit mode” for defunct companies on 07.06.2011 to enable the striking off of the names of such companies under section 560 of the Companies Act, 1956.

19/12/2012

The Lok Sabha approved the much-awaited amendments to the Companies Bill, 2011, making it mandatory for profit-making companies to spend on activities related to Corporate Social Responsibility (CSR). In case, a company is not doing so, it will have to explain the reasons for shortfall.

The Bill, aimed at improving corporate governance, also contains provisions to strengthen regulations for corporates as well as auditing firms.

Moving the Bill for consideration, Minister of State (Independent Charge) for Corporate Affairs Sachin Pilot said private companies, while maximising their growth, also have responsibility towards society besides equitable and sustainable growth of the country. The changes in the Bill include provisions making it mandatory for companies to spend 2% of their average net profit on CSR activities. However, only companies reporting Rs 5 crore or more profits in the last three years have to make the CSR spend. Companies failing to meet the obligation will have to explain and disclose reasons in their annual books of account. Otherwise, companies would face action, including penalty.

Amendments
* Makes it mandatory for companies to spend 2% of average net profit on CSR
* Mandates payment of two years' salary to employees in companies which wind up operations
* Limits the number of companies an auditor can serve to 20
* More clarity on criminal liability of auditors
* Annual ratification of appointment of auditors for five years
* New clause related to offence of falsely inducing banks for obtaining credit
* Statutory powers to SFIO to tackle corporate fraud Safeguarding workmen in the legislation, the new law mandates payment of two years' salary to employees in companies which wind up operations. This liability would be overriding, Pilot said.

The amended legislation, with 470 clauses, also limits the number of companies an auditor can serve to 20. It has also brought in more clarity on criminal liability of auditors. Besides, the approved amendments also include annual ratification of appointment of auditors for five years and introduction of a new clause related to offence of falsely inducing banks for obtaining credit.

Besides, the changed law allows more statutory powers to the government’s investigative arm Serious Fraud Investigation Office (SFIO) to tackle corporate fraud.

The amendments, to the Bill that has been in force since 1956, were first introduced in August 2008. However, it was withdrawn as the Lok Sabha was dissolved. It was again introduced in Parliament in 2009 and sent to the Standing Committee, which presented its report in August 2010. Notably, unlike most Bills, the Bill was referred to the Standing Committee twice. The revised Bill 2011 was again referred to the committee as certain new provisions were included. The current amendments to the Bill are in line with the suggestions put forward by a Parliamentary Standing Committee on Finance.

15/12/2012

EW DELHI: The I-T department has paid a tax refund of Rs 51,900 crore during the first seven months of the current fiscal.

As per the provisional data, the refund has been to the tune of Rs 51,908 crore up to October 2012, Minister of State for Finance S S Palanimanickam said in a written response to the Lok Sabha.

During 2011-12, he said, the total refund was Rs 95,278 crore.

"Processing of returns of income, including those with refunds claims, is a continuous process. Statutory time limit to process returns of income is with reference to the financial year of their receipt," he said.

As per the Income Tax Act 1961, he said returns received during the financial year can be processed up to one year from the end of the financial year in which return is received.

In reply to another question, Palanimanickam said there were 1,540 search warrants executed by the I-T Department and seized total assets worth Rs 290.29 crore during the first half of the current fiscal.

As per the provisions of the Income Tax Act 1961, he said, immovable properties cannot be seized during the search and seizure actions.

Replying to another question, Palanimanickam said 17,204 suspicious transactions (STRs) received by Financial Intelligence Unit-India from reporting entities of investigation of suspected money laundering.

STRs are only a suspicion and whether any transaction is a product of money laundering and if so, the amount involved in money laundering can be established after investigations are complete, he said.

04/12/2012

The International Olympic Committee (IOC) today suspended the Indian Olympic Association for holding hold elections under a controversial government sports code.

Kansal Bansal & Goel (Chartered Accountants)

10/07/2014

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