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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 MARCH 2012
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• INDEX
• Direct Taxation
• Indirect Taxation
• Corporate and Other Laws
• International Trade and Finance
• Statutory Due Dates for March 2012

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• DIRECT TAXATION Index
• No Tax Returns for Salary up to Rs. 5 Lakh
• The Central Board of Direct Taxes (CBDT) has
  specified that individuals with total income of
  up to Rs 5 lakh in a financial year and
  comprising only incomes under the head salaries'
  and income from other sources' would be exempt
  from filing their income-tax returns for
  assessment year 2012-13 (financial year 2011-12).
  Income from other sources' should only be by way
  of interest from a savings account in a bank, not
  exceeding Rs 10,000/-
• Parliamentary panel for raising income tax
  exemption limit to Rs 3 lakh
• A Parliamentary Panel scrutinizing the proposals
  of the new direct taxes code has recommended a
  sharp increase in the tax exemption limit on
  basic income to 3 lakh and on investments to 2.5
  lakh. The recommendation represents a 67
  increase over the current limit on basic income
  tax exemption limit of 1.8 lakh and 65 over the
  1.55 lakh limit for investments, including health
  insurance. Health Inurance for senior citizen
  parents will be eligible for another 20,000
  rebate, the same as the current limit.

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• INDIRECT TAXATION Index
• Excise Net May Cover More Goods
• The finance ministry may levy excise duty on some
  of the exempted goods in the forthcoming Budget,
  to meet the objectives of moving towards Goods
  and Services Tax (GST) and bringing more items
  under the tax net to increase revenues.
• About 240 goods are exempted from central excise.
  The ministry is considering a proposal to add
  items to the list of 130 goods that attract one
  per cent excise duty, while some goods taxed at
  one per cent might be moved to a higher tax
  bracket of five per cent. Another option before
  the ministry is to increase the minimum rate from
  one to two per cent. The idea is to gradually
  move towards GST by minimizing exemptions. Under
  the GST concept, exempted list of items are
  expected to be minimum because zero-tax items go
  out of the chain and producers do not get input
  credit on them.
•  

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• CORPORATE AND OTHER LAWS Index
• Simplification and Revision of SOFTEX Procedure
• Considering spurt in volume of software exports
  from India in recent times, the complexity of
  work contracts involved, the voluminous nature of
  contract agreement and duration involved in
  execution of each contract as well as time
  consuming process involved in certification of
  SOFTEX forms, the procedure was revised.
• The software exporter whose annual turnover is at
  least Rs. 1000 crore or who files at least 600
  SOFTEX forms annually, will be eligible to submit
  a statement in excel format giving all
  particulars to STPI . Then STPI will verify the
  details. Under the revised procedure the exporter
  will have to provide information about all the
  invoices including the one lesser than US25000
  in the bulk statement in excel format.
• The procedure will be effective initially in
  Bangalore, Hyderabad, Chennai, Pune and Mumbai
  with effect from 1st April 2012.

Newsletter March 2012
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• CORPORATE AND OTHER LAWS Index
• Release of Foreign Exchange for Imports Further
  Liberalisation
• At present, applications by persons, firms and
  companies for making payments, exceeding USD 500
  or its equivalent towards imports into India must
  be made in Form A-1.But based on suggestions
  received from the various stake holders, the said
  limit has been reviewed and it has been decided
  as a measure of liberalization to raise the above
  limit for foreign exchange remittance towards
  imports without any documentation formalities,
  from USD 500 or its equivalent to USD 5000 or its
  equivalent, with immediate effect.
• It is clarified that the Authorized Dealers need
  not obtain any document, including Form  A-1,
  except a simple letter from the applicant
  containing the basic information viz., the name
  and the address of the applicant, name and
  address of the beneficiary, amount to be remitted
  and the purpose of remittance, as long as the
  exchange being purchased is for a current account
  transaction (and is not  included in the
  Schedules I and II of the Foreign Exchange
  Management (Current Account Transactions) Rules,
  2000, the amount does not exceed USD 5000 or its
  equivalent and the payment is made by a cheque
  drawn on the applicant's bank account or by a
  Demand Draft.

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• INTERNATIONAL TRDAE AND FINANCE Index
• Only pure FDI in realty
• The Reserve Bank of India (RBI), which has taken
  a firm stand against allowing external commercial
  borrowings (ECBs) in the real estate sector, now
  wants to clamp down on overseas investments in
  the sector through instruments that carry a fixed
  or variable internal rate of return. The central
  bank seems to be clear on allowing only pure
  foreign direct investment (FDI) in real estate
  where not firms but only specified projects can
  accept these foreign funds.
• Despite a recent clarification from the commerce
  ministry, the RBI has maintained that such
  instruments were in the nature of an overseas
  loan and, hence, should be subjected to ECB
  rules. Since ECB rules do not permit foreign
  investment in the real estate sector, this would
  close a crucial source of financing for real
  estate companies. The RBI's emphasis is that only
  pure equity should flow into the real estate
  sector.
• In other sectors where ECB is allowed, the RBI is
  approving foreign investment into such
  instruments, subject to the investors and the
  investee companies adhering to ECB rules, which
  specify the usage of such funds.

Newsletter March 2012
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• STATUTORY DUE DATES FOR FEBRUARY 2012 Index
• Statutory Due Dates Calendar for March 2012

Due Date Statutory Compliance
5th March 2012 Payment of Service Tax/ Excise duty
7th March 2012 Payment of TDS
15th March 2012 Payment of Provident Fund contribution/ Profession Tax
15th March 2012 Payment of Advance Income Tax
21st March 2012 Payment of ESIC/ MVAT
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