The document summarizes key proposals in the Indian Budget 2013 relating to direct and indirect taxes. For direct taxes, it outlines changes such as increased surcharge rates for foreign companies, a new tax on commodities derivatives trading, increased royalty and technical fee rates, and incentives for manufacturing investments over $20 million. It also covers proposals relating to power sector incentives, dividend distributions, and taxation of alternative investment funds. For indirect taxes, it notes customs, excise, and service tax changes.
Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill...DVSResearchFoundatio
Key Takeaways:
- Rationale for the Bill
- Non-applicability of Few Provisions
- Tax Incentives for Alternative Investment Fund
- Rationalisation of Provisions for Foreign Institutional Investors
- Miscellaneous Amendments
Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Bill...DVSResearchFoundatio
Key Takeaways:
- Rationale for the Bill
- Non-applicability of Few Provisions
- Tax Incentives for Alternative Investment Fund
- Rationalisation of Provisions for Foreign Institutional Investors
- Miscellaneous Amendments
Tax Deducted At Source - What is TDS & Why is it DeductedIts All About Money
Tax Deduced at source (TDS) is a means of collecting income tax in India, governed under the Indian Income Tax Act of 1961. Learn more about what is TDS and why is it deducted.
OBJECTIVE
The deadly virus COVID-19 has already started to impact the economy. In view of fighting against the effects of the pandemic on the nation, the Ministry of Finance of India has come up with certain relief measures to tackle the economic situation and measures with regard to statutory and compliance requirements. In this Webinar, we will be learning about the various tax and economic measures taken by the Government of India to aid the nation during the lock down period.
Objectives & Agenda :
To analyse and interpret the provisions of the Income-tax Act relating to chargeability of Income from Sources other than Salary, House Property, Business or Profession and Capital Gains. In this Webinar, we will discuss the various incomes that are chargeable under the head 'Income From Other Sources' which covers Dividends, Gifts, Certain Interest, Advance money forfeited etc. Finally, the Webinar will touch upon relevant Judicial Precedents.
In the day to day operations of the business, it is essential to have grip on Tax Deducted at Source (TDS) which acts as a means to collect tax at the inception of the income itself and Tax Collected at Source (TCS) where a seller collects a certain amount of tax from the buyer at the time of sale. In this webinar we will be learning the applicability, non-applicability, prevailing rate of tax and other related provisions of the Income-tax Act with respect to TDS and TCS
To understand the meaning, need,objective and issues of secondary adjustment and to know the intent of government to introduce secondary adjustment in transfer pricing. Method of secondary adjustment adopted by India. To analyse Union Budget 2019 amendments regarding secondary adjustment. Finally, to know the method of secondary adjustment adopted in other countries.
ALLOWABILITY OF OUTSTANDING INTEREST CONVERTED INTO DEBENTURES AS AN EXPENSE ...DVSResearchFoundatio
Key Takeaways:
- Facts and issues of the case
- Rationale behind the section
- Ruling of lower jurisdiction authorities
- Rival submissions before the Honourable Supreme Court
- Observations and final rulings of Honourable Supreme Court
- Way Forward
this presentation consists of the information abou TDS ans TCS and their implications under GST. It also includes the differnce between both the terms.
Dividends, Winning from Lotteries, Interest on Securities, Keyman Insurance Policy, subletting of house property, family pension, interest on bank deposit, interest on loan given, rent from vacant plot of land, agriculture income, interest on income tax refund, post office saving certificates, gift, gift received from relatives,
Tax Deducted At Source - What is TDS & Why is it DeductedIts All About Money
Tax Deduced at source (TDS) is a means of collecting income tax in India, governed under the Indian Income Tax Act of 1961. Learn more about what is TDS and why is it deducted.
OBJECTIVE
The deadly virus COVID-19 has already started to impact the economy. In view of fighting against the effects of the pandemic on the nation, the Ministry of Finance of India has come up with certain relief measures to tackle the economic situation and measures with regard to statutory and compliance requirements. In this Webinar, we will be learning about the various tax and economic measures taken by the Government of India to aid the nation during the lock down period.
Objectives & Agenda :
To analyse and interpret the provisions of the Income-tax Act relating to chargeability of Income from Sources other than Salary, House Property, Business or Profession and Capital Gains. In this Webinar, we will discuss the various incomes that are chargeable under the head 'Income From Other Sources' which covers Dividends, Gifts, Certain Interest, Advance money forfeited etc. Finally, the Webinar will touch upon relevant Judicial Precedents.
In the day to day operations of the business, it is essential to have grip on Tax Deducted at Source (TDS) which acts as a means to collect tax at the inception of the income itself and Tax Collected at Source (TCS) where a seller collects a certain amount of tax from the buyer at the time of sale. In this webinar we will be learning the applicability, non-applicability, prevailing rate of tax and other related provisions of the Income-tax Act with respect to TDS and TCS
To understand the meaning, need,objective and issues of secondary adjustment and to know the intent of government to introduce secondary adjustment in transfer pricing. Method of secondary adjustment adopted by India. To analyse Union Budget 2019 amendments regarding secondary adjustment. Finally, to know the method of secondary adjustment adopted in other countries.
ALLOWABILITY OF OUTSTANDING INTEREST CONVERTED INTO DEBENTURES AS AN EXPENSE ...DVSResearchFoundatio
Key Takeaways:
- Facts and issues of the case
- Rationale behind the section
- Ruling of lower jurisdiction authorities
- Rival submissions before the Honourable Supreme Court
- Observations and final rulings of Honourable Supreme Court
- Way Forward
this presentation consists of the information abou TDS ans TCS and their implications under GST. It also includes the differnce between both the terms.
Dividends, Winning from Lotteries, Interest on Securities, Keyman Insurance Policy, subletting of house property, family pension, interest on bank deposit, interest on loan given, rent from vacant plot of land, agriculture income, interest on income tax refund, post office saving certificates, gift, gift received from relatives,
Impact of taxation on cross border investment Isha Joshi
Consequent to the implemented economic liberalisation in India during the 1990s, substantial international investment activity began within the Indian capital markets and through corporate vehicles with an increasingly vibrant fervour. In fact, today, Foreign Institutional Investors (FIIs) play a crucial role in the liquidity, growth and vitality seen in Indian capital markets. Simultaneously, along with increasing FII activity, as a result of the favourable economic and political climate, India also witnessed an increasing quantum of Foreign Domestic Investment (FDI).
The regulation of these investment channels and instruments was at the front and centre of economic policy debate, a part of which revolves around taxation. There is undoubtedly a proximate and intelligible nexus between taxation and the employment of these investment tools. A taxation regime that is favourable can work in effectively attracting more international investment which in turn would enhance market liquidity, activity, and growth.1 While FIIs and FDIs may appear to be similar investment channels, for the most part, they serve entirely different objectives, and operate in substantially different manners and are subject to different regulatory regimes in terms of exchange, economic and taxation policy.
In the coming sections of this paper, the authors have attempted to analyse several aspects of FII and FDI taxation in India. The first section delineates the differences in FIIs and FDIs, their market strategy, modus operandi, and objectives, while ascertaining what exactly these investment channels imply and the various investment vehicles that may be employed by foreign actors.
The subsequent section of the paper outlines the tax regime applicable to such FDIs and FIIs, depending on the organisational scheme and objective of the business vehicle so employed for the investment.
Given that FIIs and FDIs essentially involve a foreign element, the question of double taxation is one which necessarily requires to be addressed. To that end, in the third section of this paper, the authors have looked at Double Taxation Avoidance Agreements (DTAAs) (Tax Treaties) in the context of FIIs and FDIs.
Union Budget 2014 is an earnest commencement to the economic agenda laid down by the government signifying the intent of kick starting capital spending both in public & private sector.
It is heartening to see the budget in pursuit of fiscal prudence with a focused objective to simplify tax administration in order to advance the ease of doing business.
BDO India LLP brings an overview of key changes from a tax and regulatory perspective and its impact on the economic trajectory.
Recent Tax Developments in India - DTC 2013 & APA updatesEY
This presentation is based upon two recent tax developments in India i.e. The Direct Taxes Code (DTC) 2013 and Advance Pricing Agreement (APA) updates.
Direct Taxes Code 2013 : DTC was introduced in the Indian Parliament in August 2010. Since then, there have been recommendations from various stakeholders, as well as, from the Parliamentary Standing Committee on Finance. As a follow-up on this initiative and as stated by the Finance Minister in his interim budget speech on 17 February 2014 a “revised" version of DTC 2013, has been released.
Advance Pricing Agreement : Another tax development that was closely followed and tracked by all stakeholders was APA, which was the launch in 2012 to provide a voluntary process, whereby, the Tax Authority and the taxpayer can resolve TP issues in a principled and cooperative manner on a prospective basis. Since the launch of the APA program, there has been an enthusiastic response from taxpayers and recent reports indicate that the Indian Tax Administration has concluded a few unilateral APAs.
For more information on EY India's tax services visit: http://www.ey.com/IN/en/Services/Tax/About-Our-Global-Tax-Services
Below is a glimpse of our expectations:
• Consequential amendment needed after the abolition of Dividend Distribution Tax
• Section 54B exemption should be allowed, even if the new agriculture land is purchased before the sale of agriculture land
• Tax deducted in foreign country to be treated as income of assessee
• Clarification required for pass-through of losses incurred by Business trust and Securitisation Trust
• Consequential amendment needed in the Proviso to Section 206C(5) due to omission of Section 203AA
Union Budget 2022: Amendment and Analysis of Foreign Dividend Taxesaakash malhotra
Throughout history, the Dividend Distribution Tax has had a cascading effect. Multi-tier corporations have paid more in dividend taxes. That changed in the Union Budget 2022 as the Hon’ble Finance Minister announced a much-needed reform. Read more about it here along with a full analysis of the amendment.
Dividend Income
For the purposes of inclusion in the total income of an assessee,—
(a) any dividend declared by a company or distributed or paid by it within the meaning of section 2(22)(a)/(b)/(c)/(d)/(e) shall be deemed to be the income of the previous year in which it is so declared, distributed or paid, as the case may be;
(b) any interim dividend shall be deemed to be the income of the previous year in which the amount of such dividend is unconditionally made available by the company to the member who is entitled to it.
Union Budget 2016 Highlights & Impact – EY IndiaErnst & Young
Read India’s Union Budget 2016 highlights & impact with a detailed analysis by EY India’s Budget Connect 2016 which also includes some key performance indicators. For more details, visit http://www.ey.com/IN/en/Services/Tax/EY-budget-connect-2016
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
1. INDIAN BUDGET 2013
A SUMMARY OF THE BUDGET PROPOSALS MADE BY THE MINISTER
OF FINANCE, GOVERNMENT OF INDIA, 2013
2. Table of Contents
Few Thoughts .................................................................................... 3
Part I ................................................................................................. 4
Direct Tax ......................................................................................... 4
Part II ............................................................................................. 13
Indirect Tax ..................................................................................... 13
Customs ....................................................................................... 13
Excise .......................................................................................... 19
Service Tax .................................................................................. 21
1
3. Few Thought
Unarguably, world economy has suffered a setback after 2007. Some
emerging economies did reflect growth after 2007, but the rate of growth is
slow and it appears to be fading like the Cheshire Cat smile. Slow growth is
resultant of crumbling of financial institutions like an apple pie. Even though failure of
financial institution has occurred in advanced economies, the tremors of crumble are
experienced in developing economies as well. To revive economies it is imperative to
strengthen the structure that provide finance to corporations. Strengthening solely
domestic financing structure would not suffice. It is necessary that along with
domestic financing structure, cross border investment and financing modalities
should be revived and replenished with trust.
This year, Minister of Finance leaves us with mixed feelings. Enhancement of
rate of surcharge, increase in rate of tax of royalties and fee for technical services,
continuation of Dividend Distribution Tax and levy of new tax on buy back of shares
would result in returns to foreign investors on Foreign Direct Investments in India
slighter. Tax relief on Infrastructure Bonds, Securitization Trust, a pass through status
to Alternative Investment Fund, relief to investor of Mutual Funds and Infrastructure
Bonds (NBFC or Mutual Funds both) reflects commitment and desire to have a strong
bond market that would enhance availability of finance to corporations.
Controversial GAAR provisions are put on hold and shall not see the light of the day
until April Fool’s Day in 2016. A clarification on tax residency certificate has left many
disgruntled. Be that as it may, the restrain on returns on foreign direct investment
should be reconsidered.
2
4. This note provides a brief of the proposed changes to the Income Tax Act
1961 that shall impact on corporate (domestic and foreign) that have
business in India. Part I summarizes Direct Tax and Part II contains
Indirect Tax.
PART – I
Direct Tax
Rate of Tax
The following rates are proposed in respect of business income of the
Domestic and the Foreign Companies:
Slabs Income Tax
(USD) Domestic Foreign
0 – 200,000 30.90 (30+3) 41.2 (40+3)
200,000 – 2,000,000 32.45(30+5+3) 42.02( 40+2+3)
2,000,000 – and
above 33.9( 30+10+3) 43.26(40+5+3)
The Dividend Distribution Tax (DDT) is levied at the rate of
16.9959(15+10+3)
The Royalties and Fee for Technical Services shall be taxed at the rate of
28.3 (25+10+3)
3
5. Tax on transaction in relation to Commodities Derivatives
It is proposed that a new tax on the sale of commodities derivatives is
levied at the prescribed rates.
This tax shall be levied from the tax year 2013-14
This tax is a deductible expense in accordance with the provisions of
Section 36 of the Income Tax Act;
This deduction shall apply from the tax year 2013-14.
Tax on Income by way of Royalty or Fees for Technical Services
Presently, the domestic tax prescribes that the royalties and fee for
technical services shall be taxed at a rate of 10%. Whereas the Double
taxation Avoidance Agreement (DTAA) with several countries prescribe
that the royalties and fee for technical services shall be taxed at a rate
which may vary between 10%-25%. As the domestic tax prescribes for a
lower rate of taxation, a non resident tax payer that could take benefit of
the treaty is taxed at the rate of 10%.
It is proposed that the benefit as provided by the present domestic tax
shall be withdrawn and the royalties and fee from technical service shall
be taxed at the rate of 25%. Please note that the relief provided in terms
of the double taxation avoidance agreement shall be available to the tax
payer.
Incentive for acquisition and installation of new plant or
machinery by manufacturing company
An investment linked deduction equal to 15% of the aggregate amount of
actual cost of new assets acquired and installed shall be provided to the
tax payer if such investment is more than USD 20,000,000.
To claim the deduction, tax payer shall be restricted from transferring the
new assets for a period of 5 years provided that such transfer is not
occasion by merger or a demerger of two companies.
4
6. This amendment shall take effect from the tax year 2014-15.
Extension of incentives to power sector
The deduction provided in terms of the existing provisions of the domestic
tax to power generation, distribution and transmission companies were to
lapse with the year ending 31, March 2013. These deductions could be
availed by the companies engaged in power generation, distribution and
transmission for another year i.e until 31, March 2014.
Exemption from tax to Investor Protection Fund of depositories
The Income by way of contributions from a recognized stock exchange
received by a Investor Protection Fund set up by a recognized stock
exchange is exempt from taxation.
The income by way of contribution from a depository of the Investor
Protection Fund shall not be included in total income.
The exemptions shall be applicable for tax year 2014-15.
Tax on Dividends received from foreign companies
Dividends received from foreign company (in which Indian Company holds
more than 26% share) by an Indian Company shall be taxed at the rate of
15% if such dividend is included in total income.
This lower rate of taxation shall apply for the tax year 2014-15.
Dividend Distribution Tax (DDT)
It is proposed that in the event a foreign subsidiary of an Indian Holding
Company declares dividend to the Indian Holding company and the Indian
Holding Company declares a dividend in the same financial year, than the
dividend declared by the Foreign Subsidiary to an Indian Holding
Company shall not be subjected to DDT.
This provision shall become effective from June 1, 2013.
5
7. Tax on Infrastructure bonds
The beneficial rate of tax at the rate of 5% on interest payments by an
Indian Company to a Non Resident if such Indian Company raises loans or
issues long terms Infrastructure Bonds to borrow money in foreign
currency is now proposed to be extended to such cases where the non-
resident operates a designated bank account and coverts foreign currency
into Indian Rupees to subscribe to such Infrastructure Bonds or lend.
This amendment shall take effect from June 1, 2013
Taxation of Securitization Trusts
A special regime of taxation is proposed for income of trust engaged in
Securitization. It is proposed that:
(i) Income of Securitization Trust set up and regulated by SEBI or
RBI shall be exempt from tax;
(ii) Income of Securitization Trust distributed to its investors shall
be subject to Distribution tax, if income of such investor is
chargeable to tax and no tax shall be payable if income of such
Investor is not chargeable to tax;
(iii) The Income of Securitization Trust so distributed shall not be
subject to tax in the hands of the Investors;
These amendments shall take effect from June 1, 2013.
Tax on Alternative Investment Funds
An amendment is proposed to the provisions related to tax on income of
Venture Capital Company (VCC) and Venture Capital Fund (VCF) from
investment in Venture Capital Undertaking (VCU) in light of the recent
repeal of SEBI (Venture Capital fund) Regulations 1996 and replacement
with SEBI (Alternative Investment Fund) Regulations 2012. In terms of
Section 10 (23FB) read with 115U, a pass through status is provide to VCF
and VCC as their income is taxable in the hands of their investors.
It is proposed to amend Section 10 (23FB) and continue the pass through
status in such a manner that:
6
8. (i) The VCF and VCC registered prior to repeal of SEBI (Venture
Capital fund) Regulations 1996 shall avail a pass through status;
(ii) The VCC and VCF established in terms of SEBI (Alternative
Investment Fund) Regulations 2012 shall avail pass through status
provided certain specified conditions are fulfilled.
Capital Gains on Immovable properties
It is proposed to inset a new Section 194 – IA to oblige every buyer to
deduct tax at source at the rate of 1% from the consideration payable to
the seller of an immovable property. Provided value of such property is
not less than 50 lakhs.
Tax on buy-back of unlisted shares
It is proposed to introduce an additional income tax on buy back of shares
at the rate of 20%. The tax is charged on distributed income. The
distributed income shall be the difference of the amount received by the
Company at the time of issue of such shares and the consideration paid
for buy back of shares.
The income arising to the shareholder in respect of such buy back by the
company would be exempt where the company is liable to pay the
additional income tax on the buy-back of shares.
The amendments shall take effect from June 1, 2013.
Computation of Immovable Property
The present domestic tax law provides that the value of immovable
property (in case such immovable property is a capital asset) to be
considered for determination of tax shall be the value that the relevant
state government determines for the purposes of imposing stamp duty at
the time of registration of the transfer of the said immovable property. It
proposed that a similar provision may be adopted in case the immovable
property is a stock in trade for the tax payer and income from transfer is
treated as income under the head ‘profit and gains of business and
profession’.
7
9. It is also proposed that the consideration of the immovable property to be
considered for the purposes of tax shall be the value determined between
the parties on the date execute an Agreement to Sell or the value
determined by the relevant state government on the date of Agreement to
Sell. The consideration of the immovable property on the date of
registration of transfer shall not be taken into consideration.
The amendment shall take effect from April 1, 2014.
Amendment & Extension of GAAR
It is proposed that the General Anti Avoidance Rule (GAAR) provisions
may be amended to give effect to the recommendation of the Expert
Committee appointed by the Government of India (GOI) to review these
provisions. It is proposed to consider the following:
(i) The provisions related to GAAR shall come into effect from the
tax year 2016 – 17;
(ii) An arrangement to obtain tax benefit would be an impermissible
avoidance agreement;
(iii) To determine whether an arrangement is an impermissible
arrangement factors such as period, or time for which such
arrangement has existed, payment of tax by assessee and the
fact that an exit route was provided by the arrangement, would
be relevant;
(iv) An arrangement shall deem to lack commercial substance if it
does not have an effect on a business risk or net cash flow of
any party to the arrangement.
(v) Direction of approval panel shall be binding upon the tax payer
and the Income Tax Authorities;
(vi) Definition of ‘associated parties’ and ‘connected parties’ as
stated in the provisions of GAAR shall be merged.
These amendments shall take effect from April 1, 2016.
Tax on income distributed by the Mutual Funds
It is proposed that the rate of taxation in respect of income distributed by
the Mutual Funds to its unit holders is different for individual, HUF and
8
10. any other person. It is proposed that this income shall be taxed at uniform
rate of 25% in all cases.
Interest paid to a non resident investor by an Infrastructure Debt Fund -
NBFC or Infrastructure Debt Fund – Mutual Fund is taxed at different
rates. It is proposed that in both cases, the interest income to a non-
resident shall be taxed at 5%.
The amendments shall take effect from June 1, 2013.
Amendment in the definition of Capital Asset
The agricultural land is not considered to be a capital asset of a tax payer.
It is proposed to revise the definition of agricultural land.
This amendment shall take effect from April 1, 2014.
Scope of Keyman insurance policy
The existing domestic tax exempts income received under a life insurance
policy provided that such life insurance policy is not a keyman insurance
policy. It is proposed that a keyman insurance policy shall remain a
keyman insurance policy even if the policy during its term is assigned to
employee for whom such policy was taken. In other words, a keyman
insurance policy shall be considered as a keyman insurance policy even in
case it is assigned to the employee and any income received from such
insurance policy shall be subject to tax.
The amendment shall come into effect from April 1, 2014.
Political Contributions
It is proposed to amend the provisions in such a manner that any cash
contribution to a political party or an electoral trust shall not be allowed as
deduction under the provisions of the domestic tax laws;
This amendment shall come into effect from April 1, 2014.
9
11. Clarification of the phrase “tax due” for the purposes of recovery
in certain cases
It is proposed that the term ‘tax due’ shall include penalty, interest and
other sum payable.
Therefore, directors of such private company those fail to pay tax on
demand shall be liable to pay tax unless the directors could establish that
the private company has not failed to pay tax due to his negligence,
breach of duty or malfeasance.
Incentives for blue collar wages
A tax incentive is extended to a manufacturing unit in case it employs blue
collared workers. It is proposed that this tax incentive shall not be
available in the event factory is hived off or transferred from another
existing entity or acquired as a result of amalgamation or merger.
The amendment shall take effect from April 1, 2014
Tax Residency Certificate
The domestic tax makes a provision for production of a tax residency
certificate which provides for the prerequisite information to avail benefits
of a double tax avoidance agreement. It is proposed to clarify that the
submission of a tax residency certificate is a necessary but not a sufficient
conditions for claiming benefits under the Double taxation avoidance
agreement.
10
12. Part II
INDIRECT TAX
This part discusses proposed changes to the prevailing Indirect Taxation
regime which consists of duties of customs, duties of excise and service
tax. Changes to Indirect Tax are applicable immediately unless stated
otherwise.
CUSTOMS
Amendment to the Customs Act
The following amendments are proposed to the Customs Act, 1962
(Customs Act)
(i) Section 11 of the Customs Act empowers the GOI to prohibit either
absolutely or conditionally the import and export of any goods for
the prescribed purpose. An amendment is proposed to add words
“designs and geographical indications” after words ‘the protection
of patents, trademarks and copyrights”.
(ii) Section 28BA of the Customs Act provides for provisional
attachment of property with prior approval of the Commissioner of
Customs to protect the interest of revenue. It is proposed that the
Custom Officers shall have power to provisionally attach the
property of the tax payer in case a notice has been served as the
duty of custom was levied, short or has not been levied because of
collusion or, any willful mis-statement; or suppression of facts;
(iii) Section 28E of the Customs Act provides that an Indian wholly
owned subsidiary of a foreign holding company may apply for
advance ruling in the case it proposed to undertake any business
activity in India. It is proposed that to expand the scope of this
section, the term ‘activity’ shall include any new business of import
or export proposed to be undertaken by the existing importer or
exporter;
(iv) Section 29 of the Customs Act restrains a person in charge of an
aircraft or vessel to call or land at a customs port or customs
11
13. airport. It is proposed that the Central Board of Central Excise and
Customs be empower to permit a vessel and aircraft to land at a
place other than customs port or customs airports.
(v) Section 47 of the Customs Act empower a customs officer to clear
goods for home consumption on payment of duty. In case duty is
not paid, then it could be paid within five days from the date on
which bill of entry are returned. Thereafter the duty shall be paid
with interest. It is proposed that the number of five days now be
reduced to two days.
(vi) It is proposed to amend Section 49 of the Customs Act to restrict
the period of storage of imported goods clearance of which is
pending. Such goods cannot be stored for more than thirty days at
a time in either public or private warehouse. The Commissioner of
Customs is empowered to extend the days but not more than 30
days at a time.
(vii) Section 69 of the Customs Act provides that any goods could be
exported, if warehoused, without payment of import duty provided
certain conditions are met.
(viii) In terms of the Customs Act, offences are classified as bailable
(where criminal court is empowered to grant bail mandatorily). It is
proposed that following offences under the Customs Act may be
construed as non-bailable (where criminal court has to exercise
discretion to grant bail):
(a) evasion or attempted evasion of duty exceeding INR
50,00,000; (ii) prohibited goods notified under Section 11;
(b) import and export of goods which are not declared and their
market price exceed USD 200,000; (iv) fraudulently availing
any exemption from duty that exceeds USD 100,000;
Further it is clarified that all other offences than the offences stated
above are bailable.
12
14. Amendment to the Baggage Rules
The following amendments are proposed to the Baggage Rules:
(i) To raise the duty free allowance in respect to jewellery for an
Indian passenger who was residing abroad for over a period of one
year or a person who is transferring his residence to India from INR
10,000 to 50,000 in case of man and in case of woman from INR
20,000 to INR 1,00,000.
(ii) The duty free allowance for a crew member is increased from INR
600 to INR 1,500.
Rate of Custom Duties
The following revisions to the duties of customs are proposed:
Sr. Goods Prevailing Proposed
No.
1 Dehulled oat grain 30% 15%
2 Hazel nuts 30% 10%.
3 De-Oiled rice bran 10% Nil
oil cake
4 New passenger
cars and other
motor vehicles
(high end cars)
with cif value
more than us$
40,000 and/or
engine capacity
exceeding 3000cc
for petrol run
vehicles and
13
15. exceeding 2500 cc
for diesel run
vehicles 75% 100%.
5 Motor cycle with 60% 75%
engine capacity of
800cc or more
6 Limonite Nil 10%
unprocessed
7 Limonite, Nil 5%
upgraded
8 Bauxite Nil 10%
9 Stainless steel 10% 5%
wire cloth stripe
for use in the
manufacture of
catalytic
convertors and
their parts
10 Stainless steel 7.5% 5%
wire wash coat for
use in the
manufacture of
catalytic
convertors and
their parts
11 Pre-Forms of 10% 2%
precious and semi-
precious stones.
12 Steam coal (basic) 0 2%
13 Steam coal (cvd) 1% 2%
14
16. 14 Bituminous coal 5% 2%
(basic)
15 Bituminous coal 6% 2%
(cvd)
16 20 specified 7.5% 5%
machinery for use
in leather and
footwear industry.
17 Yachts and motor 10% 25%
boats
18 Electric and hybrid
vehicles
basic Nil Nil
cvd 6 6
sad Nil Nil
19 Raw silk (not 5% 15%
thrown)
20 Textile machinery 7.5% 5%
& parts
21 Set top boxes for 5% 10%
tv
15
17. Other Proposals
(i) It is proposed to extend the time of consumption of imported
goods by the ship repair units from a period of 3 months to 1 year.
Similarly extensions of time are provided to aircrafts as well.
(ii) The exemption granted in respect of education cess and secondary
& higher education cess on aircraft and aircraft parts, soybean oil,
olive oil etc. is withdrawn
16
18. EXCISE
Amendment to the Excise Act
The following amendments are proposed to the Central Excise Act, 1944
(Excise Act)
(i) At present Section 9 of the Excise Act provides that an evasion of
duty beyond thirty lakhs attracts imprisonment of seven years with
fine. It is proposed to relax this provision by enhancing the limits of
duty evasion from USD 50,000 to USD 100,000.
(ii) It is proposed that the Section 9A of the Excise Act be amended to
carve out certain offences such as evasion of excise duty, dealing
with goods which under the act are liable for confiscation and
categorized them as cognizable and non-bailable (grant of bail in
such matter is a discretion of appropriate court where such matters
are tried).
(iii) It is proposed to amend Section 11 of the Excise Act in such
manner that the recovery of duty could be initiated from the
agent of the tax payer;
(iv) It is proposed to amend Section 11 A of the Excise Act to
equate service of statement containing details of duty not paid,
short levied or erroneously refunded is a deemed service of
notice as prescribed under the Excise Act.
Rate of Custom Duties
The following revisions to the duties of customs are proposed:
Sr. Goods Prevailing Proposed
No.
1. Tapioca sago 15% Nil
(sabudana) and
tapioca starch
17
19. 2. Henna powder or
paste
15% Nil
3. Sports utility
vehicles
27% 30%
4. Truck chassis 14% 13%
5. Silver Nil 4%
manufactured
from zinc/lead
smelting
6. Stainless steel
"Patta Patti" per
machine per
month Rs 30,000 Rs 40,000
7. Ships and other Exempt
vessels
8. On hand made
carpets and
carpets Exempt
9. Textile floor
coverings of coir
Or jute, whether Exempt
or not handmade
10. Mobile phones of 1% 6%
retail sale price
exceeding Rs 2000
18
20. Other Proposals
The following is proposed in addition to the above:
(i) It is proposed to clarify that the trimmed or untrimmed sheets or
circles of copper intended for use in manufacture of handicrafts or
utensils shall include copper and copper alloys;
(ii) It is proposed that the ‘Zero Excise Duty Route’ in relation to
brnaded readymade garments and made ups is restored.
(iii) It is proposed that branded ayurvedic medicaments and
medicaments of Unani, Siddha, Homeopathic or bio-chemic system
are being brought under MRP based assessment with abatement of
35% on MRP.
SERVICE TAX
Amendment to the Service Tax
The following amendments are proposed to the Finance Act, 1994
(Service Tax Act)
(i) The scope of Section 65 B (11) of the Service Tax Act is enhanced
by including State Council of Vocational Training.
(ii) It is proposed that the term designated trades shall include courses
offered by Industrial Training Institute or Industrial Training Centre
affiliated to State Council of Vocational Training. The services
rendered by these Industrial Training Institute and Industrial
Training Centre shall be part of negative list.
(iii) Section 65B (40) of the Service Tax Act shall be amended to
include processes carried out in terms of Medicinal and Toilet
Preparations (Excise Duties) Act, 1955.
19
21. (iv) It is proposed that the testing activities directly related to
production of any agricultural produces like soil testing, animal feed
testing, testing of samples from plants or animals, for pests and
disease causing microbes will be covered by the negative list.
(v) It is proposed to introduce a new section that shall impose penalty
on director, manager, secretary or other office of the company,
who is in any manner knowingly concerned with specified
contraventions.
(vi) It is proposed to increase the amount of tax payment of which
should be evaded to be liable for punishment for a period of three
years. Further failure to pay service tax collected to the credit of
central government within 6 months shall attract a jail terms of
seven years.
(vii) It is proposed to classify offences under the act as non-cognizable
and bailable offences
(viii) It is proposed to grant a retrospective exemption to Indian
Railways on the service tax leviable on various taxable services
provided by them prior to July 1, 2012.
(xi) It is proposed that where the carper area of residential unit is upto
2000 sq. ft or the amount charged is less than USD 200,000 in case
of construction of complex, intended for sale to a buyer taxable
portion for service tax shall be 25%. in all other cases taxable
portion for service tax will be 30%.
This change will come into effect from the 1st day of March, 2013.
(x) The exemptions limits provided by to the charitable organization to
be eligible for payment of service tax was USD 50,000. From this
year this exemption is withdrawn. The charitable organizations shall
also be covered by threshold exemption.
20
22. (xi) The service tax shall be levied on taxable service provided in
restaurants with air-conditioning or central air heating in any part
of the establishment at any time during the year.
(x) It is proposed to withdraw the following exemptions:
(a) Services provided by an educational institution by way of
renting of immovable property;
(b) Temporary transfer or permitting the use of enjoyment of a
copyright relating to cinematographic films was fully exempt
so far, now this exemption will be restricted to exhibition of
cinematograph films in a cinema hall or cinema theatre.
(c) Services by way of vehicle parking to general public;
(d) Services provided to government, local authority, or a
governmental authority, by way of repair or maintenance of
aircraft.
21
23. Aditya Tiwari, Of Counsel, N South
B.Com., Delhi University, LLB, Delhi University; Admitted to Bar in 1999. He is a corporate commercial lawyer with
special interest in M&A, partnered and unpartnered cross border investments, corporate commercial contracting and real
estate.
Commencing his career as a specialist litigation lawyer, he has transited over the years into performing a strategic
corporate role whereby he renders generic client centric guidance, guides the client’s investment initiatives domestically
and across borders, establishes the contractual regime for its businesses, manages its compliance regime, maintains a
constant vigil over its wider commercial environment especially when strategic and pre-emptive measure are indicated
and generally represents a one stop outsourced legal support to a business.
In the infrastructure space, he maintains a quality real estate practice.
He can be contacted at aditya.tiwari@nsouthlaw.com.
Advocates
th
C-62 B, 6 Floor, Super Mart-I, DLF City-IV,
Gurgaon, Haryana-122 009 (India)
Telefax: +91-124-4042521, 4042522
E-mail: mail@nsouthlaw.com
Website: www.nsouthlaw.com
22