The document provides a synopsis of direct and indirect tax proposals from the Indian budget presented on March 16, 2012. Key direct tax proposals include no change in corporate tax rates, removal of cascading dividend distribution tax, and increased thresholds for tax audits and presumptive taxation. International tax proposals focus on advance pricing agreements, transfer pricing regulations, and clarifications overriding previous court judgments. Personal tax proposals include an increased basic exemption limit and widening of the 20% tax slab.
Rationale behind the Act
Effective date of new Act
Applicability of the Act
Its size and nature
49 Sections
6 Rules
25 Regulations
Other related matters
Key Takeaways
Analysis of definitions in Income tax act and treaties
Taxability under the act and treaties
IRoyalty vs. Business income
Illustrative Cases
Judicial Precedents
Rationale behind the Act
Effective date of new Act
Applicability of the Act
Its size and nature
49 Sections
6 Rules
25 Regulations
Other related matters
Key Takeaways
Analysis of definitions in Income tax act and treaties
Taxability under the act and treaties
IRoyalty vs. Business income
Illustrative Cases
Judicial Precedents
Key Takeaways:
- Facts of the case
- Issues and Orders
- Contention of the parties
- Observations of Honourable Supreme Court
- Conclusion and way forward
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
Income Computation and Disclosure StandardICDS IX – Borrowing CostsAdmin SBS
Introduction and Applicability of ICDS
Scope of ICDS – IX Borrowings Costs
Definitions
Recognition of Borrowing Costs
Eligibility for Capitalization of Borrowing Costs
Commencement of Capitalization of Borrowing Costs
Cessation of Capitalization of Borrowing Costs
Disclosures in Tax Audit Report
Basis of Differences
Conclusion
Introduction of ICDS
Applicability of ICDS
Scope
Terms covered
Classification of Items
Recognition and Measurement
Initial Recognition
Subsequent Recognition
Exchange Differences
Differences between AS-11 and ICDS – VI
What are the key elements of the companies (amendment) bill, 2020DVSResearchFoundatio
Key Takeaways:
Salient features of the Bill
Decreminalisation of offences
Initiatives on ease of living to law abiding corporates
Relaxations under various provisions of the Act
SEBI(LODR) Regulations, 2015- Obligations on listing of specified securities-...DVSResearchFoundatio
Key Takeaways:
- Meetings of shareholders and their voting
- Change in name of the listed entity
- Dissemination of information on website and in newspapers
Key Takeaways:
- Payroll Taxes
- Transfer Pricing
- Global Intangible Low Taxed Income
- Controlled Foreign Corporation
- Base Erosion and Anti-Abuse Tax
- Covid Impact and Measures
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
Budget 2012 Crisp analysis of Income tax provisions by Blue ConsultingChandan Goyal
A whitepaper on Income Tax Provisions in Union Budget 2012- with greater depth, so you could assess the impact of proposed taxation provisions with greater ease.
The format has been designed keeping in mind your reading convenience.
Relevant Sections and the dates of applicability have been mentioned for each taxation provision
Watch out this space for detailed analysis of Service Tax provisions.
Regards,
Chandan Goyal
Budget 2015 : A crisp analysis of Income Tax provisions by Blue Consulting Pv...Chandan Goyal
I am pleased to share a whitepaper on Budget 2015- Income Tax provisions, crisply analyzed, ready for your personal use.
The format has been designed keeping in mind your reading convenience.
Relevant Sections and the dates of applicability have been mentioned for each taxation provision.
Key Takeaways:
- Facts of the case
- Issues and Orders
- Contention of the parties
- Observations of Honourable Supreme Court
- Conclusion and way forward
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
Income Computation and Disclosure StandardICDS IX – Borrowing CostsAdmin SBS
Introduction and Applicability of ICDS
Scope of ICDS – IX Borrowings Costs
Definitions
Recognition of Borrowing Costs
Eligibility for Capitalization of Borrowing Costs
Commencement of Capitalization of Borrowing Costs
Cessation of Capitalization of Borrowing Costs
Disclosures in Tax Audit Report
Basis of Differences
Conclusion
Introduction of ICDS
Applicability of ICDS
Scope
Terms covered
Classification of Items
Recognition and Measurement
Initial Recognition
Subsequent Recognition
Exchange Differences
Differences between AS-11 and ICDS – VI
What are the key elements of the companies (amendment) bill, 2020DVSResearchFoundatio
Key Takeaways:
Salient features of the Bill
Decreminalisation of offences
Initiatives on ease of living to law abiding corporates
Relaxations under various provisions of the Act
SEBI(LODR) Regulations, 2015- Obligations on listing of specified securities-...DVSResearchFoundatio
Key Takeaways:
- Meetings of shareholders and their voting
- Change in name of the listed entity
- Dissemination of information on website and in newspapers
Key Takeaways:
- Payroll Taxes
- Transfer Pricing
- Global Intangible Low Taxed Income
- Controlled Foreign Corporation
- Base Erosion and Anti-Abuse Tax
- Covid Impact and Measures
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
Budget 2012 Crisp analysis of Income tax provisions by Blue ConsultingChandan Goyal
A whitepaper on Income Tax Provisions in Union Budget 2012- with greater depth, so you could assess the impact of proposed taxation provisions with greater ease.
The format has been designed keeping in mind your reading convenience.
Relevant Sections and the dates of applicability have been mentioned for each taxation provision
Watch out this space for detailed analysis of Service Tax provisions.
Regards,
Chandan Goyal
Budget 2015 : A crisp analysis of Income Tax provisions by Blue Consulting Pv...Chandan Goyal
I am pleased to share a whitepaper on Budget 2015- Income Tax provisions, crisply analyzed, ready for your personal use.
The format has been designed keeping in mind your reading convenience.
Relevant Sections and the dates of applicability have been mentioned for each taxation provision.
Finance Bill' 2017 : A Crisp Analysis of Income Tax ProvisionsChandan Goyal
Corporate tax for domestic companies having turnover up to INR 50 crore has been reduced from 30% to 25%. Period for claiming deduction for start-up increased.Provision of “Secondary Adjustment” introduced in Transfer Pricing. Interest deduction restricted to 30% of EBIDTA. Limit of cash expenses reduced to half. Limit of receipt in cash restricted with penal provisions. Rationalization of provisions of Section 10AA.
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
The Chartered Accountants community of Auditors is being exposed to new challenges and expectations while they are finalizing audits for the Financial Year ending March 31, 2015. The new provisions will ensure that all the serious and committed professional Chartered Accountants gain substantially as the value of the Audit Report and its credibility will be much higher in the light of new responsibilities and Corporate Governance Mechanism.
On 16 March 2012, the Honorable Finance Minister of India presented in the Parliament the country's Finance Bill for 2012-13, containing proposals on direct and indirect taxes, and key policy initiatives.
In this regard, with pleasure we are presenting our annual India Budget publication. The publication summarizes the key changes announced by the Finance Minister in his speech.
Most direct tax proposals in the Finance Bill 2012 are proposed to be effective from the financial year commencing on 1 April 2012 unless specified otherwise and indirect tax proposals are effective immediately, unless specified otherwise
We hope you find it an interesting and informative read.
Team SPN
5 Major Impacts of GST on E-Commerce IndustryChandan Goyal
In this 10 minutes video, you will get to know about 5 Major Impacts of GST on E-Commerce Industry so that you can plan proactively. One such major impact if mandatory registration requirement of sellers who are selling their goods or services through the e-commerce platform, irrespective of their turnover.
Watch out to know the remaining 4 impacts of GST on e-commerce industry.
5 major changes related to International Taxation in Union Budget'2017Chandan Goyal
In this 13 minutes video, I'll explain 5 major changes related to International Taxation in Union Budget'2017, which you must know.
One of the most important changes is the introduction of "Secondary Adjustment" in transfer pricing which is based on international best practices. The Secondary Adjustment would be deemed as advance to an associated enterprise if primary adjustment amount is not received within prescribed time limit and deemed interest would be applicable, taxable as Income.
Impact of amendments in Provident Fund regulationsChandan Goyal
It’s been approx 3 months since Ministry of Labour notified the changes in PF regulations which resulted in an increase of more than 125% in the Statutory ceiling limit from Rs. 6,500 to Rs. 15,000.
Around same time, an internal circular was issued which instructed the regional PF offices to inspect the establishments which have splitted the wages to reduce their PF liability.
In this whitepaper, we have tried to analyse the key amendments, current practice, current position of law and a possible solution.
GST (Goods and Service Tax) is going to transform the fundamentals of doing business in India in terms of speed, ease and competitiveness.
The present Government is leaving no stone unturned to make it a reality from 1st April’2016. In all probability, GST Bill is expected to be passed in the Budget session of 2015.
In this backdrop, we thought of compiling the basic tenets of GST and it’s present status.
Hope you will find it useful.
Share among your professional colleagues and friends to spread the awareness.
Budget 2013- Crisp analysis of Service Tax Provisions by Blue Consulting (5th...Chandan Goyal
BC is pleased to share a whitepaper on Budget 2013- Service Tax provisions, crisply analyzed, ready for your personal use.
The format has been designed keeping in mind your reading convenience.
Relevant Sections and the dates of applicability have been mentioned for each taxation provision.
Budget 2013 - Crisp analysis of Income Tax Provisions by Blue Consulting (5th...Chandan Goyal
BC is pleased to share a whitepaper on Budget 2013- Income Tax and Service Tax provisions, crisply analyzed, ready for your personal use.
The format has been designed keeping in mind your reading convenience.
Relevant Sections and the dates of applicability have been mentioned for each taxation provision.
This is a web based platform which offers following benefits to a CA firm :
- Networking with CA firms across India
- Sharing of professional work & resources
- Business from potential clients
- Posting jobs to hire Articles and CA’s
Budget Analysis by Blue Consulting (July 132009)Chandan Goyal
It plainly talks about Title of changes made, relevant Section or Rules, analysis of changes and effective date from which these changes shall be applicable in a tabular format.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
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Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
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Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
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RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
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Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
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Budget synopsis by Blue Consulting (March 19th 2012)
1. Synopsis- Direct and Indirect Tax proposals
March 19’2012 [Budget presented on 16th March’2012]
Doing common things, Uncommonly well. Blue Consulting Pvt. Ltd.
Consulting I F&A Outsourcing I Internal Audit
2. Index
Blue Consulting Pvt. Ltd.
2 Index www.blueconsulting.co.in Consulting F&A Outsourcing Internal Audit
A. DIRECT TAX
1. Corporate Tax 4
2. International Taxation 7
3. Personal Taxation 9
B. INDIRECT TAX
1. Service Tax 12
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DIRECT TAX
4. 1. Corporate tax
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No change in the Corporate Tax Rate.
Cascading effect of Dividend Distribution Tax (DDT) in a multi-layered structure sought to be removed –
No DDT on dividend distributed by holding company out of dividend received from its subsidiary if
subsidiary has paid DDT.
Dividends received by Indian companies from their foreign subsidiaries during Financial Year 2012-13
(only) will continued to be taxed at a concessional rate of 15 percent on a gross basis.
Cash donations in excess of Rs. 10,000 not eligible for deduction under section 80G.
Share premium received from resident shareholders can be taxed in the hands of closely held companies
in case share premium is excessive as compared to fair value.
General Anti-Avoidance Rules (GAAR) introduced whereby an impermissible avoidance arrangement may
be disregarded/ tax benefits denied.
Time period for completion of assessments increased by 3 months i.e. from 21 months to 24 months
from the end of relevant Assessment Year. Time barring date will be 31st March and not 31st December.
Advance tax shall be payable in case TDS is not deducted by the payer/client . Accordingly, interest for
short payment of advance tax to the extent of TDS not deducted shall be payable and it can not be
contended.
5. …contd.
Blue Consulting Pvt. Ltd.
5 Index www.blueconsulting.co.in Consulting F&A Outsourcing Internal Audit
Fee of Rs 200 per day prescribed for delay in furnishing TDS returns. In addition, a penalty ranging from
Rs 10,000 to Rs 100,000 can also be levied.
TDS @1% to be deducted by every transferee (including an Individual) of an immovable property (other
than agricultural land) if value of the property exceeds Rs. 20 lacs or 50 lacs (as the case may be)
otherwise property can not be registered. New Section 194LAA introduced.
Weighted deduction of 200% for scientific research and development extended for a further period of
five years i.e. up to 31st March’2017 under Section 35(2AB).
Deduction in respect of capital expenditure on specified business under Section 35AD extended to three
new businesses. Further, limit of 100% deduction increased to 150% of capital expenditure for some
specified businesses.
Business expenditure on account of non-deduction of tax on payment made to resident payee shall be
allowed if resident payee has included that amount in his total income, paid the taxes and filed its income
tax return. [Section 40(a)(ia)].
Threshold limit for tax audit increased from Rs. 60 lacs to Rs. 100 lacs [ and from Rs. 15 lacs to Rs. 25 lacs
in case of professionals] under Section 44AB.
Similarly, threshold limit for presumptive taxation under Section 44AD increased from Rs. 60 lacs to Rs.
100 lacs and it has been clarified that benefits of Section 44AD shall not be available to person carrying
on profession, agency business or earning income in the nature of commission or brokerage.
6. …contd.
Blue Consulting Pvt. Ltd.
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Section 143(1) amended to provide that processing of return will not be necessary in a case where notice
under Section 143(2) has already been issued for scrutiny of the return.
Any remuneration paid to a director ( which is not in the nature of salary) will attract TDS under Section
194J @ 10% i.e. Director Sitting Fees
Section 200A amended to provide that the intimation generated after processing of TDS statement shall
be subject to rectification under Section 154, appealable under Section 246A and deemed as notice of
demand under Section 156.
Section 234D amended to clarify that the provisions under this section would be applicable to any
proceeding which is completed on or after 1st June, 2003 irrespective of the assessment year to which it
pertains.
Compulsory filing of income tax return by every resident in relation to assets located outside India
(including financial interest in any entity outside India) irrespective of the fact whether the resident
taxpayer has taxable income or not. [Section 139]
Time limit for issue of notice for re-opening an assessment in relation to any asset located outside India
increased from 6 years to 16 years. [Section 149]
Alternative Minimum Tax (AMT), similar to MAT, made applicable to non-corporate assessee who are
claiming deductions under Chapter VI-A and Section10AA if the adjusted total income of such assessee
exceeds Rs. 20 lacs.
7. 2. International Taxation
Blue Consulting Pvt. Ltd.
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Advance Pricing Agreement (APA) provisions introduced which allows an agreement to be entered
between a taxpayer and taxing authority on an appropriate transfer pricing methodology for a set of
transactions over a maximum period of 5 consecutive pervious years. [Section 92CC & 92CD]
Transfer Pricing Regulations (including the procedural and penalty provisions) made applicable to certain
domestic transactions between related parties if the aggregate amount of such domestic transactions
exceeds Rs.5 crore in a year. [Section 40A, 10AA & Chapter VI-A]
In a clear attempt to override the Vodafone Judgment of Hon’ble Supreme Court, clarifactory
amendments have been introduced in Section 9(1)(i) – Business Connection, Section 2(14)- Definition of
Capital Asset, Section 2(47)- Definition of Transfer and Section 195 with retrospective from April1, 1962.
Definition of ‘International Transactions’ in Section 92B enlarged through a retrospective amendment
w.e.f. 1st April’2002.
Scope of ‘Royalty’ under Section 9(1)(vi) widened through a retrospective amendment w.e.f. 1st
June’1976.
Tax Residency Certificate (TRC) required for claiming relief under DTAA [Section 90]. It means a payer
would be required to obtain the TRC from the payee for making payments outside India availing DTAA
benefits.
8. …contd.
Blue Consulting Pvt. Ltd.
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Scope of Section 271AA enlarged to attract the penalty of 2% of the International Transactions if the
taxpayer fails to report any international transaction which is required to be reported and maintains or
furnishes any incorrect information or documents. This penalty would be in addition to penalties in
Section 271BA and 271G.
Section 44AB amended to obtain the tax audit report by 30th November if an assessee if required to
obtain a report under Section 92E from an accountant in respect of International Transactions. This
amendment has been made to remove the existing anomaly.
Transfer Pricing Officer (TPO) has been empowered to determine Arm Length Price (ALP) of international
transactions not referred to him by Assessing Officer if such transactions are not reported in Form 3CEB
by the assessee. [Section 92CA]
Upper ceiling of tolerance range for determination of ALP to be 3% and Central Government shall notify
the tolerance range.
9. 3. Personal Taxation
Blue Consulting Pvt. Ltd.
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Basic exemption limit increased from Rs. 180,000 to Rs. 200,000 to benefit individual tax payers .
Tax slab of 20% widened from the existing Rs. 5-8 lacs to Rs. 5 to 10 lacs benefiting tax payers with lower
tax liability by Rs. 20,000.
Tax relief of Rs. 22,660 for an individual drawing a taxable income of more than Rs. 10 lacs.
Additional deduction of up to Rs. 20,000 for investments in notified long-term infrastructure bonds u/s
80CCF for individuals and Hindu Undivided Families discontinued.
Interest on deposits in saving accounts (not being time deposits) shall be allowed as deduction up to Rs.
10,000 through introduction of a new Section 80TTA.
Amount received from life insurance policies shall be exempt under Section 10(10D) only where the
premium payable for any of the years during the term of the policy does not exceed 10% [earlier it was
20%] of the actual capital sum assured.
Similarly, deduction for the life insurance premium as regards to insurance policies under Section 80C
shall be allowed for only so much of the premium payable which does not exceed 10% [earlier it was
20%] of the actual capital sum assured.
Senior Citizens (having an age of 60 years of more) have been exempted to pay advance tax if they don’t
have any business income.
10. ….contd.
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Deduction up to Rs. 5,000 allowed for preventive health check up of self, spouse and dependent children
and parents with in the overall limit of Rs. 15,000 under Section 80D. The silver lining is that payment for
preventive health check up can also be made in cash.
Relief to an individual or HUF from long term capital gain on sale of a residential property (house of plot
of land) if the sale consideration is re-invested in the equity of a new start-up SME company in the
manufacturing sector which is utilized by the company for the purchase of new plant and machinery
subject to certain conditions. [ new Section 54GB].
11. Blue Consulting Pvt. Ltd.
11 Index www.blueconsulting.co.in Consulting F&A Outsourcing Internal Audit
INDIRECT TAX
12. 1. Service Tax
Blue Consulting Pvt. Ltd.
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Effective rate of Service Tax increased from 10.3% to 12.36% (including education cess).
A Negative List approach to taxation of services is being introduced where in the services specified in the
‘Negative List’ [Section 66B]shall remain outside the tax net. All other services except those specifically
exempted would thus be chargeable to service tax. New Sections 65B, 66B,66C, 66D, 66E and 66F have
been proposed in Chapter V of the Finance Act,1994.
A Guidance Paper is expected to be placed in public domain which will have detailed information about
the changes due to introduction of ‘Negative List’ regime.
The dual rate structure of maximum service tax of Rs. 150 and Rs. 750 on domestic and international
journey by air is being replaced by an advalorem rate of 12% with abatement of 60% subject to the
condition that no credit on inputs and capital goods is taken.
Rates of service tax incase of Works Contract Service under the Composition Scheme has been changed
from 4.12% to 4.944% (including education cess).
The period for issue of Show Cause Notice is being raised from 12 months to 18 months.
Penalty would be waived for those taxpayers who pay the service tax due on the renting of immovable
property service ( as on 06.03.2012) in full along with Interest with in 6 months from the date of
enactment of the Finance Bill, 2012.
13. …contd.(Service Tax)
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Periodicity of service tax return has been changed to as below:
Quarterly return : For Individual, Firm and LLP
Quarterly return : Other than Individual, Firm and LLP having tax liability LESS than Rs. 25 lacs in immediately preceding financial
year.
Monthly return: Other than Individual, Firm and LLP having tax liability MORE than Rs. 25 lacs in immediately preceding financial
year
A new Section 67A has been proposed to prescribe that the value of taxable service (particularly in the
case of import and export of taxable services) and the rate of tax shall be determined in terms of Point of
Taxation Rules, 2011.
A new section 72A is being inserted to introduce provisions relating to special audit in the service tax law
on the lines of Section 14 and Section 14AA of the Central Excise Act, 1944.
Settlement Commission provisions has been proposed to be made applicable to service tax.
Section 68(2) of the Finance Act, 1994 is being amended to put the onus of payment of service tax on
reverse charge basis partly on service provider and partly on service receiver. The scheme is proposed to
be made applicable on three specific services:
Hiring of means of transport
Works contracts services
Supply of manpower for any purpose.
14. …contd.(Service Tax)
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Changes in Cenvat Credit Rules, 2004:
Reversal of Cenvat Credit for exempt service in Rule 6(3) increased from 5% to 6%.
Rule 7 for input service distributors is being amended to provide that credit of service tax attributable to service used
wholly in a unit shall be distributed only to that unit. The credit of service tax attributable to service used in more than
one unit shall be distributed pro rata on the basis of the turnover of the concerned unit to the sum of the turnover of
all the units to which the service relates.
Rule 9(1)(e) is being amended to allow availment of credit on the tax payment challan in case of payment of service
tax by the service receiver on reverse charge basis.
Rule 14 amended to provide that interest is chargeable only if Cenvat Credit is “wrongly availed and utilized’. Thus,
no interest is chargeable if Cenvat Credit is wrongly availed but not utilized.
Capital goods definition amended to include motor vehicles and parts etc.
Changes in Service Tax Rules, 1994:
Excess amount of service tax paid can be adjusted without any limitation.
Invoice can be raised with in 30 days as against the earlier limit of 14 days.
If the aggregate value of taxable service is less than R. 50 lacs in the immediate previous financial year, the service
provider shall have the option to pay tax on receipt basis on the taxable services up to Rs. 50 lacs in the current
financial year.
15. …contd.(Service Tax)
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Period of appeals before the Commissioner Appeals reduced from 3 months to 2 months.
No date has been communicated for implementation of Goods and Service Tax (GST). However, GST
Network (based on PAN) is expected to be operational by August’2012.
A common simplified registration form and a common return form has been proposed for Service tax
and Central Excise.
16. About us
Blue Consulting Pvt. Ltd.
16 Index www.blueconsulting.co.in Consulting F&A Outsourcing Internal Audit
Blue Consulting or ‘BC’ provides value added and high quality
services in the domain of Finance & Accounts:
Consulting services
Finance & Accounts Outsourcing Services
Internal Audits
BC, has its roots in a well established, four decade old
chartered accountants firm.
Utilizing forty years of industry experience and functional
expertise, BC looks innovatively beyond standard solutions to
develop new insights, drive tangible results, and empower clients
to achieve greater results.
Key associates at BC have rich experience in the area of Finance,
Taxation, Accounts, Management and Information Technology.
Providing quality service with complete responsibility is natural to
our corporate culture
17. Contact us Blue Consulting provides value added and high
quality Finance & Accounts related services through
its vast pool of experienced professionals. Our goal
Blue Consulting Pvt. Ltd.
17 Index www.blueconsulting.co.in is to be a trusted partner in your business Internal Audit
Consulting F&A Outsourcing by
bringing value and serving as an integral part of
your set up.
We are coming with an in-depth analysis of budget
provisions related to Direct and Indirect taxes and we’ll share it Blue Consulting, or BC, has its roots in a well
with you on or before 22nd March’2012. established, four decade old chartered accountants
firm. Utilizing forty years of industry experience and
functional expertise, BC looks innovatively beyond
Chandan Goyal standard solutions to develop new insights, drive
Chief Executive Officer tangible results, and empower clients to achieve
greater results.
chandan.goyal@blueconsulting.co.in
For further detail, please log on to:
+91 98104 10421
www.blueconsulting.co.in
+91 120 4230649
Delhi Pune
“A dream is not that
which you see in sleep
A dream is that
which does not let you sleep”
Disclaimer
This publication is intended as a service to clients and to provide clients with the details of the important budget proposals on direct and indirect taxes. It has been prepared for
general guidance on matters of interest only, and does not constitute professional advice. No person should act upon the information contained in this publication without
obtaining specific professional advice. Due care has been taken while compiling the information ,however no representation or warranty (express or implied) is given as to the
accuracy or completeness of the information contained in this publication.