RANJ Compliance Galaxy 2012-13


Published on

A compendium of periodical compliances under various legislations, taxation rates applicable in FY 2012-13 and a glance of the previous year's corporate updates.

1 Like
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

RANJ Compliance Galaxy 2012-13

  1. 1. THE COMPLIANCE GALAXY 2012-13INSIDE THE ISSUE:› Compliance calendar……………….02› Rate chart……………………………07› Corporate updates at a glance……..13
  2. 2. The Compliance Galaxy2012-13 COMPLIANCE CALENDAR A Compliance Calendar assists a business entity to plan the payment and submission of various reports, certificates, returns, information, documents before the due date rings the door bell. Hence, following is the list of monthly, quarterly, half-yearly and yearly compliances applicable to various business entities which would assist an organization in timely compliances under various legislations: MONTHLY COMPLIANCES DUE LEGISLATION NATURE OF COMPLIANCE DATE Payment for the previous month (For Corporate Dealers) Service Tax (If payment is made through cheque) 5th Payment for the previous month (In case of Non SSI Dealer) Central Excise Act 1944 (If payment is made through cheque) Payment for the previous month (For Corporate Dealers) Service Tax (If payment is made otherwise than through cheque) 6th Payment for the previous month (For Corporate Dealers) Central Excise Act (If payment is made otherwise than through cheque) Income Tax Act, 1961 Payment of TDS/TCS for the previous month VAT/CST Payment for the month of March VAT/CST Filing of return for the month of March 7th ECB Filing of return for reporting of actual transactions of ECB Monthly Return on Capital Market Exposure to be submitted by RBI Guidelines NBFCs-D Monthly Return on Important Financial Parameters of NBFCs not RBI Guidelines accepting/holding public deposits and having asset size of Rs.100 crore and above to be submitted by NBFC-ND-SI Filing of return for the previous month Excise (In case of Non SSI Dealer) APTPTCE Act Payment & Filing for the previous month (By Employer) 10th APLW Act Payment of contribution for the previous month A Statement of short term dynamic liquidity to be submitted by RBI Guidelines NBFC-ND-SI VAT Payment for the previous month (If payment is made through cheque) 15th CST Payment for the previous month (If payment is made through cheque) VAT- Andhra Pradesh Value Added Tax Act 2005 CST- Central Sales Tax, 1956 SSI- Small Scale Industry ECB- External Commercial Borrowing NBFCs - Non-Banking Financial Companies NBFCs-D- Deposit taking NBFCs NBFCs-ND- Non-Deposit taking NBFCs. NBFCs-ND-SI- NBFCs not accepting/holding public deposits and having asset sizes of Rs.100 crore and above APTPTCE Act – Andhra Pradesh Tax on Professions, Trade, Callings and Employment Act 1987 APLW Act - AP Labour Welfare Act, 1970 Page 2 of 20
  3. 3. The Compliance Galaxy2012-13 The AP Entertainment Payment & Filing of return for the previous month Tax 1939 (Amusement & Recreation) Payment & Filing of return for the previous month Entry Tax Act 2001 (Non registered dealers) AP Tax on Luxuries Act Payment & Filing of return for the previous month 1987 15th Payment of contribution for the previous month EPF Filing of Declaration for employees joined during the previous month Employees State Insurance Act 1948 Filing of Declaration for employees joined during the previous month (ESIC) Payment for the previous month VAT (If payment is made otherwise than through cheque) Filing of return for the previous month 20th CST Filing of Return for the previous month The AP Entertainment Payment & Filing of return for the previous month (Others) Tax 1939 Payment & Filing of return for the previous month Entry Tax Act 2001 (Registered Dealers) ESIC Payment of contribution for the previous month 21st VAT Payment of Works Contract Tax (TDS) for the previous month Filing of Consolidated Statement of dues Filing of return for employees qualifying for the first time under the 25th EPF act Filing of return for employees resigned from the organization Filing of nomination form for new joinees 30th EE (CNV) Act Filing of notification of vacancies QUARTERLY COMPLIANCES DUE DATE LEGISLATION NATURE OF COMPLIANCE Payment for the previous month (For Corporate Dealers) Service Tax (If payment is made through cheque) 05th of July, Oct, Jan Payment for the previous month (For Corporate Dealers) Central Excise Act (If payment is made through cheque) Payment for the previous month (For Corporate Dealers) Service Tax (If payment is made otherwise than through cheque) 06th of July, Oct, Jan Payment for the previous month (For Corporate Dealers) (If payment is made otherwise than through cheque) Central Excise Act 10th of July, Oct, Jan & Filing of return for the previous quarter April EE (CNV) Act - Employment Exchange (Compulsory Notifications of Vacancies) Act 1959 TDS- Tax deducted at source TCS - Tax collected at Source EPF- Employees Provident Fund and Misc. Provisions Act 1952 Page 3 of 20
  4. 4. The Compliance Galaxy2012-13 10th of July, Oct, Jan & APSE Act Filing of return for the previous quarter April 15th of July, Oct, Jan Filing of TDS/TCS return for the previous quarter I-T Act 15th of May Filing of TDS/TCS return for the quarter ended March 15th of July, Oct, Jan & EE (CNV) Act Filing of return for the previous quarter April 15th of June, Sept, Dec I-T Act Payment of Installment of Advance Tax & March Payment of Turnover Tax & Filing of return for the VAT 30th of July, Oct, Jan & previous quarter April Filing of C-Form details and utilized way bill details for VAT/CST the previous quarter Filing of Annual Financial Information Statement for the 30th of Nov Central Excise Act previous Financial year 31st of March Service Tax Payment for the previous month (For Corporate Dealers) NBFC APD Submission of Quarterly Return by NBFCs-D Submission of Quarterly Statement of Capital Funds, Risk NBFCs PN (RB) D Assets etc by NBFCs-D 15th of April, July, Oct, Submission of Quarterly Return on Statutory Liquid RBI Act Jan Assets by NBFCs-D Submission of Quarterly Return on repayment of deposits RBI Act by rejected companies holding public deposit Submission of Quarterly Return of Capital Funds, Risk RBI Act Asset Ratio by NBFCs-ND-SI Payment for the previous quarter 31st of March Central Excise Act (For SSI Registered Dealers) Quarterly return to be submitted by non-deposit taking 30th of April, July, Oct, RBI Guidelines NBFCs with asset size of Rs 50 crore and above but less Jan than Rs 100 crore Within 15 days of end of Submission of Compliance Report on Corporate Listing agreement quarter Governance Within 21 days of end of Submission of Share holding Pattern to the Stock Listing agreement quarter Exchange SEBI (Depositories & Participants) Regulations, 1996 & 30th of July, Oct, Jan, Submission of Reconciliation of Share Capital Audit SEBI Circular No. April Report D&CC/FITTC/Cir- 16/2002 dated 31.12.02 Before the end of quarter Listing agreement Holding of Audit Committee Meeting Before the end of quarter Companies Act Holding Board Meeting Within 48 hours of Board Publication of quarterly results in newspapers Listing agreement meeting (English & Vernacular Language) NBFC APD - Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1999 NBFCs PN (RB) D - Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 APSE Act - AP Shops & Establishments Act 1988 I-T Act- Income Tax Act 1961 Page 4 of 20
  5. 5. The Compliance Galaxy2012-13 Within 45 Days of the Limited Review Report from the Statutory Auditors Listing Agreement end of Quarter (in case of submission of Unaudited last quarter results) HALF YEARLY COMPLIANCES DUE DATE LEGISLATION NATURE OF COMPLIANCE 12th of May & Nov ESIC Filing of return for the previous Half year ended 15th of July Factories Act, 1948 Filing of Half yearly return 25th of Oct & April Service Tax Filing of return for the previous Half year ended Submission of Statement of structural to be submitted by 20th April/ 20th Oct RBI Guidelines NBFC-ND-SI Submission of Statement of Interest Rate Sensitivity to be 20th April/ 20th Oct RBI Guidelines submitted by NBFC-ND-SI Submission of Asset-Liability Management (ALM) Return 30th April/ 30th Oct RBI Guidelines to be submitted by NBFCs-D having public deposit of Rs 20 crore 30th of July & Jan CL Act Filing of Half yearly return Within 1 month of end of half year and within 24 Certificate from Practising Company Secretary (PCS) Listing Agreement hours after signing of under Clause 47C PCS ANNUAL COMPLIANCES DUE DATE LEGISLATION NATURE OF COMPLIANCE Filing of Annual Installed Capacity Statement for financial Excise year ended 30th of April Renewal of Professional Tax registration APTPTCE Act Filing of Annual return statement EPF Filing of Annual Return of contribution cards 30th of June APTPTCE Act Payment of tax for Directors & Company Filing of Annul Return on Foreign Assets & Liabilities 15th of July FEMA under FEMA 31st of July Filing of income tax returns (In case of non audit entity) Income Tax Filing of Income tax returns (in case of Audit entities) 30th of Sept Annual Returns By deposit taking NBFCs NBFC (As required by “Non-Banking Financial Companies FEMA – Foreign Exchange Management Act 1999 CL Act - Contract Labour (Regulation & Abolition) Act 1970 Page 5 of 20
  6. 6. The Compliance Galaxy2012-13 Acceptance of Public Deposits (Reserve Bank) Directions, 1998”.) to be submitted by NBFCs-D 31st of Oct CL Act Application for renewal of license 30th of Nov APSE Act Renewal of registration Payment of Bonus Act, 30th of Dec Filing of Annual return 1965 VAT Submission of Audited Trading, P & L Account 31st of Dec APLWAct Filing of Yearly return 15th of Jan Factories Act, 1948 Filing of Annual return Minimum Wages Act, Filing of Annual return 1948 01st of Feb Payment of Wages Act, Filing of Annual return 1936 15th of Feb CL Act Filing of Annual return Listing Agreement Annual Listing Fees 30th of April Listing Agreement Annual Custodial fees to NSDL/CDSL 30th of June Companies Act, 1956 Return of Deposits Within 45 days of the Intimation regarding submission of Annual audited Results Listing Agreement end of Quarter (if unaudited last quarter results not submitted) Submission of Annual Audited (along with audit report) if 30th of May Listing Agreement last quarter unaudited results not submitted Within 2 working SEBI (Prohibition of days of receipt of Annual disclosures under regulation 13(6) regarding Insider Trading) information u/r 13(3) Details of change in shareholding Regulations, 1992 & (4) Within 6 months from the close of Companies Act, 1956 Holding Annual General Meeting (AGM) financial year Within 30 days of Filing of Balance sheet, Profit and Loss Account and other Companies Act, 1956 date of AGM documents Within 60 days of date of Annual Companies Act, 1956 Filing of Annual return general meeting Page 6 of 20
  7. 7. The Compliance Galaxy2012-13 RATE CHART RATES UNDER AP VALUE ADDED TAX S. Particulars Rate No SCHEDULE RATES 1. Schedule I 0% 2. Schedule III 1% 3. Schedule IV 5% 4. Schedule V 14.50% 5. Schedule VI Special Rates COMPOSITION SCHEME 6. Works contract executed for State Government or Local authority 4% 7. Works contract executed for other than state Government or Local 4% authority 8. Apartment Builders and Developers 4% on 25% of total consideration STANDARD DEDUCTIONS FOR WORKS CONTRACT 9. Electrical Contracts 15% to 25% 10. All structural contracts 35% 11. Installation of plant and machinery 15% 12. Fixing of marble slabs, polished granite stones 25% and tiles (other than mosaic tiles) 13. Civil works like construction of buildings, 35% bridges roads etc 14. Design, fabrication and installation of centralized Air-conditioning 5% plant, Air Handling units, Refrigeration plants and any other Heating, Ventilating and Air Conditioning Systems. 15. 15% Fixing of sanitary fittings for plumbing, drainage and the like 16. Painting and polishing 25% 17. Laying of pipes 25% 18. Tyre re-treading 40% 19. Dyeing and printing of textiles 40% 20. Printing & Supplying of printed material 40% 21. All other contracts 30% TDS ON WORKS CONTRACT TAX 22. All categories of contracts not falling in sub-clauses (ii) 4% of 70% of total consideration 23. Contracts for laying or repairing or roads and contracts for canal 2% of 70% of the amount digging, lining and repairing. Page 7 of 20
  8. 8. The Compliance Galaxy2012-13 AP TURNOVER TAX RATE Particulars Rate On total sale value 1% CENTRAL SALES TAX RATES Particulars Rate 2% (or) the state level VAT rate, On Gross value of Inter-state sales transaction whichever is lower AP PROFESSIONAL TAX RATES Category Range Rate (Rs.) Directors -- 2500/- P.A. Estate Agents or Brokers -- 550/- P.M. Companies -- 2500/- P.A. Partners -- 500/- P.A. Occupiers of Factories -- 1000/- P.A Sub-brokers recognized by the Stock -- 1000/- P.A. Exchange Board of India Property Developers including Land -- 2500/- P.A. Developers and Building / Flat Developers Owners of Residential hotels and -- 2500/- P.A. lodging houses having > 20 rooms Individuals or institutions conducting -- 2500/- P.A. Chit funds Chartered Accountants >2 and < 5 years in profession 500/- P.A. > 5 years in profession 2500/- P.A. Salary & wage earners Range 5001 to 6000 60/- P.M. Range 6001 to 10000 80/- P.M. Range 10001 to 15000 100/- P.M. Range 15001 to 20000 150/- P.M. Above 20000 200/- P.M. Contractors Class I 2500/- P.A. Class II 1500/- P.A. Class III 500/- P.A. Other Contractors Work executed < 10lacs 500/- P.A. Work executed > 10lacs 1500/- P.A. Employers Under AP Shops & Employees >1 and < 5 110/- P.A. Establishment Act Employees >5 and < 10 400/- P.A. Employees >10 and < 20 1000/- P.A. Page 8 of 20
  9. 9. The Compliance Galaxy2012-13 Employees > 20 2500/- P.A. Co-operative Societies State level Society 2500/- P.A. Co-Operative Sugar Factories, Spinning 2500/- P.A. Mills, Banks District level Society 330/- P.A. Mandal level Society 220/- P.A Village level Society 150/- P.A Persons other than the above 750/- P.A SERVICE TAX RATES Particulars Rate on the gross value of services rendered Registered dealers under service tax 12% Nature of taxable service Abatement Rate Mandap keeper Service 60% Tour Operator Service in relation to package tour 75% Tour Operator Service (booking of accommodation) 90% Tour Operator Service (other than above two mentioned) 60% Renting of Cab 60% Renting of hotels, inn, guest houses clubs others 40% Supply of food or any other article of human consumption at Convention service, 30% hotels, clubs, pandal, shamiana or any other place specially arranged for organizing function Services involved in supply of food or any other article of human consumption or 70% any drink restaurant at (which has licence to service alcoholic beverages) Services involved in supply of food or any other article of human consumption or 40% any drink as outdoor catering service Chit Service 70% Business Auxiliary Service 30% Erection Commission & installation service 67% GTA 75% Financial leasing service 90% Pandal & Shamiana 30% Construction of complex When land value is included 75% When land value is not included 67% Transport of goods by rail 70% Transport of passengers by rail 30% Aircraft operator 40% Page 9 of 20
  10. 10. The Compliance Galaxy2012-13 Nature of taxable service Optional scheme Insurer 3% of the premium charged in the first year and 1.5% in subsequent years Foreign Exchange 0.12% of the gross amount of currency exchanged for an amount upto rupees 100,000, subject to the minimum amount of Rupees 30; and Rupees 120 and 0.06 per cent. of the gross amount of currency exchanged for an amount of Rupees exceeding 100,000 and upto rupees 10,00,000; and Rupees 660 and 0.12 per cent. of the gross amount of currency exchanged for an amount of rupees exceeding 10,00,000, subject to maximum amount of rupees 6000: Composition rate 4.80% CENTRAL EXCISE DUTY Particulars Rate Basic Duty Proposed in Budget 2012 12 % LUXURY TAX Particulars Rate Luxuries provided by Hotels Charges below Rs. 300/- Per day per person Nil Charges above Rs. 300/- Per day per person 5% Luxuries provided by Corporate Hospitals Charges below Rs. 500/- Per day per person Nil Charges above Rs. 500/- Per day per person 10% Tobacco Products Chewing Tobacco preparations commonly known as Khara, Masala, 50 paise in every rupee Kimam, Dokta, Zarda, Sukha and Surti. Cigarettes 05 paise in every rupee INCOME TAX RATES FY 2011-12 Rate FY 2012-13 Rate Upto1,80,000 (Individuals, HUF, Nil Upto 2,00,000 (Individuals, HUF, Nil AOP, BOI, AJP) AOP, BOI, AJP) Up to 1,90,000 (for women) Nil Up to 2,00,000 (for women) Nil Up to 2,50,000 (for resident Nil Up to 2,50,000 (for resident Nil individual of 60 years or above) individual of 60 years or above) Page 10 of 20
  11. 11. The Compliance Galaxy2012-13 Up to 5 Lacs (senior citizens > Nil Up to 5 Lacs (senior citizens > Nil 80years) 80years) 1,80,001 – 5,00,000 10% 2,00,001 – 5,00,000 10% 5,00,001 – 8,00,000 20% 5,00,001 – 10,00,000 20% 8,00,001 upwards 30% 10,00,001 upwards 30% ENTERTAINMENT TAX Particulars Rate A/C and Air Cooled Theatres 20% Other Theatres 18% SURCHARGE RATE Particulars Rate On domestic companies (Total Income > 1 Crocre) 5% On other than domestic companies (Total Income > 1 Crocre) 2% EDUCATION CESS Particulars Rate Education cess on income tax 2% Secondary & Higher education cess on income tax 1% PROVIDENT FUND CONTRIBUTION Particulars Rate Employers contribution to Provident Fund 3.67% Employers contribution to Pension Fund 8.33% Employers contribution to EDLI 0.5% Employers contribution towards the Administrative charges for Provident Fund 1.10% Employers contribution towards the Administrative charges for EDLI 0.01% Employee contribution 12% ESI CONTRIBUTION Particulars Rate Employers contribution 4.75% Employee contribution 1.25% Page 11 of 20
  12. 12. The Compliance Galaxy2012-13 TDS RATES Nature of Payment Section Code Individual Others /HUF Salary 192 Avg Rate Avg Rate Interest on Securities 193 10% 10% Deemed Dividend 194 10% 10% Interest other than Interest on securities (By 194A 10% 10% bank & others) Winning from Lotteries & Puzzles 194B 30% 30% Winning from Horse Race 194BB 30% 30% Payment to Contractors 194C(1) 1% 2% Payment to Adverting/Sub contractors 194C(2) 1% 2% Insurance Commission 194D 10% 10% Payment out of deposits under NSS 194EE 20% - Repurchase of Units by MF/UTI 194F 20% 20% Commission on sale of Lottery tickets 194G 10% 10% Commission & Brokerage 194H 10% 10% Rent – Land & Building 194I 10% 10% Rent – Plant & Machinery 194I 2% 2% Professional Fee & Technical Services, Royalty 194J 10% 10% & non compete fee Remuneration to Directors (Proposed in 194J 10% 10% Budget 2012) Compensation on acquisition of immovable 194LA 10% 10% property TCS RATES Nature of Goods Rate % Alcoholic liquor for human consumption 1% Tendu Leaves 5% Timber obtained from forest lease 2.5% Timber obtained from any mode other than forest lease 2.5% Any other forest produce not being timber or tendu leaves 2.5% Scrap 1% Parking lot 2% Toll plaza 2% Mining & Quarrying 2% Cash transaction in bullion and Jewellery (Proposed in Budget 2012) 1% Sale of Coal, Lignite and Iron ore 1% Page 12 of 20
  13. 13. The Compliance Galaxy2012-13 CORPORATE UPDATES AT A GLANCE (FY 2011-12) MCA › Schedule VI to the Companies Act, 1956 revised – Revised schedule VI applicable to all the companies uniformly for the financial statements to be prepared for the financial year ended 31st March, 2012 onwards › DIN procedure simplified - DIN application is to be made online pre-certified by a professional through e- form DIN1 and no physical submission of documents shall be required › Payment of Commission to Non-Whole time Directors of the company under section 309(4)(b) of the Companies Act, 1956 shall not require approval of the Central Government › Payment of fees through Electronic Mode made mandatory - payments of value upto Rs. 50,000, shall be made only in electronic mode. For the payments of value above Rs. 50,000, stakeholders would have the option to either make the payment in electronic mode, or paper challan › Delegation of Power Central Government to Regional Directors and Registrar of Companies for incorporation of Section 25 companies to reduce the time › Limits Enhanced from Rs.50,000/- to Rs. 2,50,000/- for obtaining approval of the Central Government for payment of remuneration to office or place of profit › Limits Enhanced from Rs. 24 lacs P.A to Rs. 60lacs P.A for Disclosure of Particulars of Employees Under Section 217(2A) of Companies Act, 1956 › Green Initiatives in Corporate Sector - Company would have complied with Section 53 of the Companies Act, if the service of document has been made through electronic mode instead of Under Posting certificate (UPC) › Appointment of Cost Auditor by Companies reviewed - Appointment of cost auditor needs to be first considered by the Audit Committee and upon the recommendation of the audit committee Board can make the appointment of Cost Auditor › Informing PAN through DIN - Directors who have not furnished their PAN earlier at the time of obtaining DIN are required to furnish their PAN by filing e-form DIN-4 › Word “partnership” in ICAI, ICWAI, ICSI Acts include LLPs - The words “partnership” wherever occurring in the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959 and the Page 13 of 20
  14. 14. The Compliance Galaxy2012-13 Company Secretaries Act, 1980 shall mutatis mutandis be construed as including those Limited Liability Partnerships › Green Initiatives in the Corporate Governance:  Issue of Certificates by RoC by Digital Signature  Ministry allows holding shareholders meetings through video conferencing  Participation by Directors in Board / Committee Meetings through video conferencing  Approval of appointment of agency for providing electronic platform for e-voting under Companies Act, 1956 › Filing of event based forms not to be accepted until Annual forms/returns are filed - No e-filing shall be accepted by the RoC from Directors of defaulting companies for any other company also until updated Balance Sheet and Profit & Loss Accounts and Annual Return are filed with the Registrar of Companies › Settlement of prosecutions cases through Lok Adalats – MCA organized Lok Adalats for swift disposal of pending prosecution cases against companies/directors › Fast Track Exit mode for defunct companies - Companies inoperative since incorporation or commenced business but became inoperative/defunct later on may apply for getting their names strike off from the RoC › Payment of MCA 21 Fees via NEFT - NEFT payment option will eliminate inconveniences caused due to payment processing delays › Synchronization of DPIN with DIN – MCA has decided to issue only one identification number to an individual for both the purpose DIN & DPIN › Waiver of approval of Central Government for payment of remuneration to professional managerial person by companies having no profits or inadequate profits › Simplified Procedure for amalgamation of Government Companies U/s 396 of the Companies Act, 1956 - Every Central Government Company which is applying to the Central Government for amalgamation with any other Government Company or Companies shall obtain approval of the Cabinet i.e. Union Council of Ministers › The Companies (Passing of the resolution by Postal Ballot) Rules, 2011 provides for voting by electronic mode - voting by shareholders may be carried on in electronic mode Page 14 of 20
  15. 15. The Compliance Galaxy2012-13 RBI/FEMA › Central Registry, a public database, established to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property › FII investment limit in listed non-convertible debentures / bonds, with a residual maturity of five years and above, and issued by Indian companies in the infrastructure sector enhanced from USD 5 billion to USD 25 billion › With a view to liberalising the import procedure limit for requirement of furnishing bank guarantee increased from USD 100,000 to USD 200,000 or its equivalent › To provide operational flexibility and ease the procedure for FDI related transactions, RBI has decided to permit AD to open and maintain, without its prior approval non-interest bearing Escrow accounts in Indian Rupees in India on behalf of residents and / or non-residents, to facilitate FDI transactions › Pledge of shares of an Indian company held by non-resident investor/s in favour of AD Category - I banks allowed › Bank loans to all MFIs, including NBFCs working as MFIs on or after April 1, 2011, will be eligible for classification as priority sector loans › With a view to providing more operational flexibility to Indian corporates having investments abroad, it has been decided to further liberalise / rationalise as following: a. Only 50 per cent of the amount of the performance guarantees to be reckoned for the purpose of computing financial commitment to its JV/WOS overseas; b. Indian promoters who have set up WOS abroad or have at least 51% stake in an overseas JV, may write off capital (equity / preference shares) or other receivables and management fees in respect of the JV/WOS; c. Listed Indian promoter companies with net worth of less than Rs.100 crore and investment in an overseas JV/WOS not exceeding USD 10 million allowed for disinvestment under the Automatic Route; d. Issue of guarantee by an Indian party to step down subsidiary of JV/WOS now under general permission › The issuance of equity, preference shares under the government route of the foreign direct investment scheme permitted for some categories Page 15 of 20
  16. 16. The Compliance Galaxy2012-13 › Designated AD Category-I banks to approve the request from the ECB borrowers with respect to change in the recognized lender › Enhancement of ECB limit under the automatic route to USD 750 million or equivalent per financial year › Transfer of shares between resident and non-resident investors allowed under the foreign direct investment route without its prior permission with certain exceptions › Based on the recommendations of the Malegam Committee Report a new Category of NBFCs-‘Non Banking Financial Company-Micro Finance Institutions’(NBFC-MFIs) introduced › Powers for Compounding of Contraventions under FEMA, 1999 delegated to regional offices › Restrictions under Section 20 of the Banking Regulation Act, 1949 would apply to grant of loans and advances to spouse and minor/dependent children of the Directors of banks as well › Revised procedure for Reporting of Software Exports introduced for those software exporters whose annual turnover is excess of Rs. 1,000 Crores or who submits at least 600 Softex Forms annually › Limit for foreign exchange remittance towards imports without any documentation formalities, enhanced from USD 500 or its equivalent to USD 5000 or its equivalent INCOME TAX › Government proposes to issue biometric PAN card to the asssessee › Firm or individual/HUF covered under section 44AB are mandatorily required to file ITR-5 or ITR-4 electronically using digital signature › Prior permission from the income tax authorities needed for creating a charge COMMERCIAL TAX › Due date for payment & filing o f Professional Tax Return has been revised to 10th of every month › VAT @ 20% has been imposed on certail tobbaco products › VAT rate for schedule IV products been increased to 5% from the existing 4% Page 16 of 20
  17. 17. The Compliance Galaxy2012-13 › Agents selling agricultural produce on behalf of agricultural principals are been exempted from VAT Registration › Interest for delay in payment of vat amount has been increased to 1.25% from the existing rate of 1% › The marginal Textile dealers with an annual taxable turnover of above Rupees 5 Lakhs and below Rupees 40 Lakhs will be subjected to levy of tax at the rate of only 1% › Textile and sugar are exempted from tax under CST Act vide GO. MS. 2328 and is still in force › Dealers who are engaged in integrated activity of Printing & Supplying of printed materials may have an option to pay tax by way of composition @ 4% on 60% of total value of such supplies received and receivable › Input tax credit for the dealers paying VAT under Section 4 (7)(a) of AP VAT Act has reduced to 75% SERVICE TAX › Club or association service provided by a registered cooperative society has been exempted from service tax › With effect from 01.04.2012 service tax will need to be charged at 12.36% › Limits under the alternate payment option given to foreign exchange service proverders has been enhanced › Abatement of 60% has been granted to aircraft operator for rendering service to passengers on domestic and international journey › The composition rate of service tax on works contract has been amended to 4.80% from the existing 4% › 34 new services has been introduced and enlisted under service tax exemption category › Notification has been passed in regard to certain category of service where both service receiver and service provider are made liable for the payment of service tax. › Medical services in terms of sub-clause (zzzzo) of section 65(105) has been exempted from service tax › Exemption has been granted to the taxable service as referred to in sub-clause (zzzzw) of clause (105) of section 65 of the said Act, when the declared tariff for providing of such accommodation is less than rupees 1000 per day from the whole of the service tax leviable thereon under section 66 of the said Act. Page 17 of 20
  18. 18. The Compliance Galaxy2012-13 EXCISE › E-Filing of excise returns has been made mandatory from 01.10.2011 › Products such as uniforms or made-up articles like quilt, blankets, towels, linen etc. bearing the name or logo of a school, security agency, company, hotel or airline etc would not merit treatment as “branded” products CUSTOMS › Custom officials may permit Re-export of goods and DEPB Credit tcrip for goods imported under DEPB credit to the exporters › OSPCA (On Site Post Clearance Audit) will be initiated in respect of ACP - Accredited Client Programme › CBEC imposed definitive anti-dumping duty on the imports of Coumarin originating in, or exported from, the People’s Republic of China which are imported into India SEBI › With a view to enhance information available in the public domain on performance of asset pools on which securitized debt instruments are issued, it has been decided to put in place a Listing Agreement for securitized debt instruments › ASBA (Applications Supported by Blocked Amount) facility mandatory for all non-retail investors (HNIs and institutional investors) investing in public and rights issues › Methodology of calculating the Annual Issuers charges changed. The annual issuers’ charges would be based on the average no. of folios (ISIN positions) during the previous financial year instead of the total number of folios (ISIN positions) as on 31st March of the previous financial year › SEBI to allow investors eligible for differential pricing to make the payment of discounted price at the time of bidding itself, subject to compliance of appropriate disclosure and other norms › Mutual Funds/AMCs have been advised to invariably provide an option to the investors to to hold units in demat form Page 18 of 20
  19. 19. The Compliance Galaxy2012-13 › Guidelines for change of name of listed companies liberalized. New rules facilitates change of name even if amount invested in the new activity/project (Fixed Assets + Advances + Works in Progress) is at least 50% of the assets of the company › New Centralized web based complaints redress system ‘SCORES’ (SEBI Complaints Redress System) launched for speedy processing of investor complaints › Stock Exchanges may consider granting membership to LLPs subject to LLP complying with the conditions laid down in Rule 8(4A) of the SCRR › SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 notified in place of erstwhile takeover code for enhanced governance of the securities as well as capital market › Amendments to the Equity, IDR and SME Equity Listing Agreements: a. Listed entities shall also submit the last quarter results along with the audited annual results b. Submission of unaudited results shall be accompanied by the limited review report of the auditors c. Soft copies of full annual reports to be sent all those shareholders who have registered their email addresses for the purpose › Merchant bankers to disclose the track record of the performance of the public issues managed by them › BSE and NSE (Stock exchanges) mandated to provide a separate window, i.e. apart from the existing trading system for the normal market segment, to facilitate promoters of listed companies (which are required to comply with minimum public shareholding requirements) to dilute/offload their holding in listed companies in a transparent manner with wider participation › To kick start the stock exchange for small and medium enterprises (SMEs), the capital market decided to standardize the lot size lot size for initial public offer (IPO) proposing to list on SME exchange. …………. Page 19 of 20
  20. 20. The Compliance Galaxy2012-13 DISCLAIMER The above information is only indicative and solely for informational purpose and private circulation. RANJ & Associates, Company Secretaries intend to, but do not guarantee or promise that it is correct, complete / up-to-date. We expressly disclaim any liability to any person in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the contents of this document. The information in this document is as of April 01, 2012. Page 20 of 20