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INDEX Direct Taxation Indirect Taxation International Taxation Corporate & Other Laws

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TM. We are dependable and trustworthy knowledge processing partner. Although we are a separate entity, we are an integrated part of your organization, like a slice of a wholesome pie. NEWSLETTER – OCTOBER 2013. INDEX Direct Taxation Indirect Taxation International Taxation - PowerPoint PPT Presentation

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We are dependable and trustworthy knowledge processing partner. Although we are a separate entity, we are an integrated part of your organization, like a slice of a wholesome pie.




• Direct Taxation

• Indirect Taxation

• International Taxation

• Corporate & Other Laws

• Statutory Due Dates October 2013

Newsletter –October 2013



• Compulsory Scrutiny Limit for TP tripled to 15 CrsTP provisions were introduced in India by the Finance Act, 2001, so as to protect India's right to collect a fair share of tax in respect of cross-border transactions. Initially, CBDT decided that only where the aggregate value of international transaction exceeds Rs 5 crore, the case should be picked up for scrutiny and reference be made to the TPO.It was, however, soon realised by the government that the limit of Rs 5 crore for making reference to TPO is hardly adequate. Therefore, in a welcome move, the CBDT vide instruction no. 10/2013 dated August 5, 2013, have further relaxed the monetary limit for selection of TP cases for compulsory scrutiny. Under the new instructions, the following categories of cases/returns shall be compulsorily scrutinized:

- Cases where value of international transaction as defined u/s 92B of Income-tax Act exceeds Rs 15 crore.

- Cases involving addition in an earlier assessment year on the issue of TP in excess of Rs 10 crore which is confirmed in appeal or is pending before an appellate authority.It may be clarified here that the limit of Rs 15 crore for selection of TP cases for scrutiny was prevailing earlier also. But the said limit was only by way of internal instructions.

Newsletter – October 2013



• Deposit TDS or Face ProsecutionAccording to the Income Tax Department’s recent press release, prosecution proceedings would be initiated for delays in depositing tax deducted at source. Those proved guilty can face rigorous imprisonment up to seven years. Earlier, the Central Board of Direct Taxes initiated prosecution proceedings if the deductor retained TDS for a year or more. However, under the revised guidelines, the minimum retention period of twelve months has been dispensed with. Any delay in depositing TDS beyond the prescribed period shall attract prosecution.

• Extension of date for receipt of ITR-Vs in CPC,  Bengaluru, for the cases of AY 2012-13 and 2011-12 received in e-filed in FY 2012-13

There are many taxpayers who have uploaded their Income Tax Returns electronically (without digital signature Certificate) for A.Y. 2011-12 [filed during F.Y. 2012-13] and for ITRs of A.Y. 2012-13 [filed on or after1.4.2012], but have either not filed the corresponding ITR-V or have filed it with the local Income-tax office.All such taxpayers may mail the ITR-V, by 31st October, 2013, by ordinary post or speed post

It is to be noted that without acknowledgement of the ITR-V from the CPC it would not be possible for the Income-tax Department to process the Income-tax returns or issue any refunds there from, as these would be treated as not having been filed with the Department.


Newsletter – October 2013


• Audit Report uploading deadline extended to 31st October 2013The government on Thursday, 26th September 2013 extended the last date for uploading audit reports of income tax returns by a month to October 31. The due date, which was earlier September 30, has been extended in the wake of difficulty in uploading the report of audit electronically as prescribed under the sub-rule (2) of Rule 12 of the I-T rules for the assessment year 2013-14. The statement from CBDT also said that the assessees are required to file the report of audit manually with the jurisdictional Assessing Officer by September 30, 2013.

Newsletter – October 2013



•Govt hikes import duty on gold jewellery to 15% The Government on 17th September 2013 raised customs duty on imported jewellery to 15% from 8% to protect the domestic industry. It would also help reduce gold imports further.To protect the interests of small artisans, the customs duty on articles of jewellery is being increased. Gold imports in the first four months of the current year rose 87% to 383 tonnes. 

Newsletter – October 2013



•India-Japan close to harmony on cross boarder tax processes

After enlarging the scope of a currency swap deal by over three-fold to $50 billion earlier this month, India and Japan have started negotiations for providing each other certainty in taxation, which is expected to benefit businesses, especially Japanese companies in India such as Suzuki, Sony, Honda and Toyota. A three-day meeting of the competent authorities in both countries handling foreign taxes in New Delhi is expected to thrash out an understanding on faster resolution of pending cross-border tax disputes. Also, the talks aim to reach faster conclusion of company-specific deals between the competent authorities called Mutual Agreement Procedures (MAPs) that would resolve pending double taxation related disputes without protracted litigation.


Newsletter – October 2013



•RBI Relaxes norms to raise overseas funds

Relaxing norms to raise funds from abroad, the Reserve Bank on 24 th September 2013 said now all types of companies can avail trade credit facility from overseas for import of capital goods. As per the notification, it has been decided to allow companies in all sectors to avail of trade credit not exceeding $20 million up to a maximum period of five years for import of capital goods as classified by Director General of Foreign Trade (DGFT).

Earlier, only companies in the infrastructure sector were allowed to raise such trade credits.RBI further said that the ab-initio contract period of 15 months for all trade credits has been relaxed to 6 months.All other aspects of trade credit policy, RBI said, will remain unchanged and should be complied with.The amended policy has come into force with immediate effect.

•Appointment of Cost Auditors: Last date of E-filing extended to 31st October

The Companies have now reason to relax as now no additional fee will be applicable for late filing of e-form 23C utpo 31st Oct 2013.

Newsletter – October 2013



The old form 23C was not able to accommodate the changes with regard to Industry specifications  to be mentioned as per the new cost audit order and the companies were not able to file Form 23C with regard to the Cost Auditor Appointment for the year 2013-14 though the last date of appointment was 29 th June 2013. Now, MCA has issued a circular no 14/2013 extending the last date of filing and relaxing the additional fee applicable on e-form 23C upto 31st October, 2013. Now 23C e-form can be filed for appointment of cost auditor with normal fee upto 31st October, 2013 or within 90 days of the commencement of company’s financials year to which appointment relates, whichever is later.

Newsletter – October 2013



•Statutory Due Dates Calendar for October 2013

Newsletter – October 2013

Due Date Statutory Compliance

5th October 2013 Payment of Service Tax/ Excise duty

7th October 2013 Payment of TDS

15th October 2013 Payment of Provident Fund contribution/ Profession Tax

15th October 2013 Filing of Quarterly TDS Return ( July to September Qtr)

21st October 2013 Payment of VAT

25th October 2013 Filing of Service Tax Return

30th October 2013 Issue of Form 16A (within 15 days from the due date of filing the quarterly TDS Return)


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Newsletter – October 2013