We are pleased to provide you with topical and relevant information, by drawing your attention to our latest News Flash - March 2013. It covers the latest updates on Companies Bill, Service Tax & TDS.

1. abm & associates
CHARTERED ACCOUNTANTS
NEWS FLASH
March 2013
NEWS FLASH MARCH 2013
abm & associates
MICROSOFT | [Company Address]

2. abm & associates
CHARTERED ACCOUNTANTS
Contents
NEW COMPANIES BILL, 2012 PROPOSES “ARM’S LENGTH” CONCEPT FOR RELATED PARTY
TRANSACTIONS __________________________________________________________________________________________________ 2
BACKGROUND ..................................................................................................................................................................................................... 2
OVERVIEW ............................................................................................................................................................................................................ 2
RELATED PARTIES/TRANSACTIONS COVERED ................................................................................................................................................. 2
CBDT ISSUED NEW RULES & FORM FOR TDS _________________________________________________________________ 4
BACKGROUND ..................................................................................................................................................................................................... 4
KEY AMENDMENTS............................................................................................................................................................................................. 4
KEY AMENDMENTS IN FORMS .......................................................................................................................................................................... 5
SERVICE TAX BEING STATUTORY LIABILITY, NOT TO BE INCLUDED IN TOTAL RECEIPTS FOR
COMPUTING PRESUMPTIVE INCOME, AS IT DOES NOT CONTAIN AN ELEMENT OF PROFIT _____________ 7
IN BRIEF................................................................................................................................................................................................................ 7
FACTS:................................................................................................................................................................................................................... 7
ISSUE UNDER CONSIDERATION: ........................................................................................................................................................................ 7
TAXPAYERS ARGUMENTS: .................................................................................................................................................................................. 7
TAX DEPARTMENT’S ARGUMENTS: .................................................................................................................................................................. 7
TRIBUNAL’S RULING: .......................................................................................................................................................................................... 7
OUR VIEW:........................................................................................................................................................................................................... 7
ST3 FILING DATE EXTENDED FOR Q2 2012-13 ________________________________________________________________ 8
Head Office : Navi Mumbai Branches : Pune | Kolhapur | Belgaum 1

3. abm & associates
CHARTERED ACCOUNTANTS
New Companies Bill, 2012 proposes “Arm’s Length” Concept for Related
Party Transactions
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Head Office : Navi Mumbai Branches : Pune | Kolhapur | Belgaum 2

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CHARTERED ACCOUNTANTS
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Head Office : Navi Mumbai Branches : Pune | Kolhapur | Belgaum 3

5. abm & associates
CHARTERED ACCOUNTANTS
CBDT Issued New Rules & Form for TDS
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Head Office : Navi Mumbai Branches : Pune | Kolhapur | Belgaum 4

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CHARTERED ACCOUNTANTS
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Head Office : Navi Mumbai Branches : Pune | Kolhapur | Belgaum 5

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Head Office : Navi Mumbai Branches : Pune | Kolhapur | Belgaum 6

8. abm & associates
CHARTERED ACCOUNTANTS
Service Tax being Statutory Liability, not to be included in total receipts
for computing presumptive Income, as it does not contain an element of
profit
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1
ITA No.8672/Mum/2010 for A.Y. 2007-08 DDIT vs. M/s. Mitchell Drilling Int. Pty. Ltd.(I.T.A.
2
Islamic Republic of Iran Shipping Lines vs DCIT, 11 Tax- No.698/Del/2012)
man.com.349(Mum), DIT va. Schlumberger Asia Service Ltd., 317 ITR 156 (Utt)
Sedco Forex International Drilling Inc vs. ADIT, 24 Taxman .com
390(Delhi)
3 (2009) 209 SOT 33 (del)
Head Office : Navi Mumbai Branches : Pune | Kolhapur | Belgaum 7

9. abm & associates
CHARTERED ACCOUNTANTS
ST3 filing date extended for Q2 2012-13
15th April, 2013
http://www.aces.gov.in/Documents/order_12013-ser-
vice_tax_dated_6-3-2013_2.pdf
Head Office : Navi Mumbai Branches : Pune | Kolhapur | Belgaum 8

10. abm & associates
CHARTERED ACCOUNTANTS
Navi Mumbai Kolhapur
#NL 5/11/03, Sector 3 #1-2, Atharva 7th Avenue
Next to Parsik Bank C.S.No.2007, 7th Lane
Nerul East Rajarampuri
Navi Mumbai – 400 706 Kolhapur – 416 008
: +91 22 2771 2275 : +91 231 2531 707
Pune
#11/E-2, New Friends
Housing Society
Paul Road
Pune – 411 038
: +91 20 2539 7707
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The information contained herein is of general nature and is not intended to address the circumstances of any particular individual or entity. Although we
endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of date i t is received or that it will
continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the
particular situation.
Head Office : Navi Mumbai Branches : Pune | Kolhapur | Belgaum 9