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NEWSLETTER –JULY 2014
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INDEX
• Direct Taxation
• Indirect Taxation
• Corporate and Other Laws
• International Taxation
• Statutory Due Dates for July 2014
Newsletter –July 2014
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DIRECT TAXATION
Index
•CII for the FY 2014-15
Cost Inflation Index i.e. CII for the FY 2014-15 is notified by CBDT on 11th June 2014. It will be “1024”.
•Government may hike tax exemption limit from 2L to 5L and deduction u/s 80C may
increase to 2L
Government may provide a major relief in coming budget to the tax-payers, by increasing the Income Tax slab
limit for exemption from Rs.2 lakh to Rs.5 lakh. Further, the government is also considering raising the tax
exemption limit on home loans and health insurance premium. Finance ministry also considering the proposal to
increase deduction limit under section 80C of the Income Tax Act, 1961 to two Lakh from existing limit of Rs.
one Lakh. The Limit of deduction U/s. 80C of Rs. one lakh was fixed wef Financial Year 2005-06 by replacing
the section 88 of Income Tax Act,1961. Since then Deduction limit remains un-changed.
Newsletter - July 2014
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DIRECT TAXATION
Index
•India to implement US foreign tax compliance act
RBI has said India and the US have agreed to implement a foreign tax compliance law and asked banks and
financial institutions to register by this year-end to report accounts and assets held by US citizens. India and the
US have agreed to implement Foreign Accounts Tax Compliance Act (FATCA), a US law that targets tax noncompliance by US taxpayers with foreign accounts. The Inter-Governmental Agreement (IGA) on FATCA,
which came into effect on April 11, will be signed only after Cabinet approval.
Newsletter - July 2014
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INDIRECT TAXATION
Index
•Excise duty cut for Auto, capital good and consumer durables extended till 31st
December 2014
In the Interim Union Budget 2014 on 17th February, 2014, the Government had reduced the Excise duty on:
Small cars, motorcycles, scooters, three wheelers and commercial vehicles from 12% to 8%; Mid-segment cars
from 24% to 20%; Large cars from 27% to 24%; and SUVs from 30% to 24%. Further, to stimulate growth in the
Capital goods and Consumer durable sectors, Excise duty was reduced from 12% to 10% on all goods falling
within the Chapters 84 & 85 of the Central Excise Tariff Act, 1985. The concessional Excise duty cut for above
mentioned goods was set to expire on June 30, 2014, will now be available till December 31, 2014.
Newsletter – July 2014
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CORPORATE AND OTHER LAWS
Index
•Due date for filing DTP-4 extended to 31st August 2014
MCA has vide General Circular N0. 27/2014- Dated 30.06.2014 extended the due date for Filing DPT-4
with Registrar of Companies in respect of Deposits standing on 01.04.2014 i.e. the date of Commencement
of Companies Act, 2013 from 30.06.2014 to 30.08.2014 without any additional fee. Companies are
required to file a statement regarding deposits existing as on date of commencement of the Act within a
period of 3 months from such commencement.
•Old Formats and forms to continue for annual return applicable for FY 2013-14
Clarification with regard to format of annual return applicable for Financial Year 2013-14 and fees to be
charged by companies for allowing inspection of records. It is, clarified that Form MGT-7 shall not apply
to annual returns in respect of companies whose financial year ended on or before 1st April, 2014 and for
annual returns pertaining to earlier years. These companies may file their returns in the relevant Form
applicable under the Companies Act, 1956. It is clarified that until the requisite fee is specified by
companies, inspections could be allowed without levy of fee.
Newsletter – July 2014
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CORPORATE AND OTHER LAWS
Index
• Liberalized Remittance Scheme for resident individuals
RBI vide circular No. RBI/2013-14/624 dated 3rd June 2014 indicated that existing limit of remittance by
resident individual is USD 75000/- per financial year which is been increased to USD 125000/- per year , under
the scheme for any permitted current or capital account transaction or a combined of both.
• EVOTING not mandatory for shareholders meeting till 31st December 2014
Section 108 of the Companies Act, 2013 read with rule 20 of the Companies (Management and Administration)
Rules, 2014 deal with the exercise of right to vote by members by electronic means (e-means). The provisions
seek to ensure wider shareholders participation in the decision making process in companies. Corporates and
other stakeholders while appreciating the new approach have drawn attention to some practical difficulties in
respect of general meetings to be held in the next few months. It is noticed by MCA that compliance with
procedural requirements, engagement of Depository Agencies and the need for clarity on matter like demand for
poll/ postal ballot etc will take some more time. Accordingly, it has been decided not to treat the relevant
provisions as mandatory till 31St December, 2014.
Newsletter – July 2014
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INTERNATIONAL TAXATION
Index
•MNC tax woes likely to end
In a move aimed at avoiding litigation in thousands of transfer-pricing cases, the finance ministry is likely to
allow in the Union Budget rollback of advance-pricing agreements (APAs) to past years . This is seen as good
news for large multinational companies like Shell, Vodafone and Microsoft, which have received draft tax orders
in recent years for purportedly suppressing incomes, as these cases could be resolved under APAs.
Newsletter – July 2014
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STATUTORY DUE DATES FOR JULY 2014
Index
•Statutory Due Dates Calendar for July 2014
Due Date
Statutory Compliance
5th July 2014
Payment of Service Tax/ Excise duty
7th July 2014
Payment of TDS
15th July 2014
Payment of Provident Fund contribution/
Profession Tax
21st July 2014
Payment of ESIC/ MVAT
31st July 2014
Income Tax Return for Individuals and other
to whom Tax Audit is not applicable
Newsletter – July 2014
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Newsletter –July 2014