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NEWSLETTER – OCTOBER 2013
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INDEX
• Direct Taxation
• Indirect Taxation
• International Taxation
• Corporate & Other Laws
• Statutory Due Dates October 2013
Newsletter –October 2013
TM
DIRECT TAXATION
Index
• Compulsory Scrutiny Limit for TP tripled to 15 Crs
TP 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
TM
DIRECT TAXATION
Index
• Deposit TDS or Face Prosecution
According 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
TM
DIRECT TAXATION
Index
• Audit Report uploading deadline extended to 31st October 2013
The 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
TM
INDIRECT TAXATION
Index
•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
TM
INTERNATONAL TAXATION
Index
•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.
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Newsletter – October 2013
TM
CORPORATE AND OTHER LAWS
Index
•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
TM
CORPORATE AND OTHER LAWS
Index
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
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STATUTORY DUE DATES FOR OCTOBER 2013
•Statutory Due Dates Calendar for 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)
Newsletter – October 2013
Index
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Newsletter – October 2013