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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 2014
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• INDEX
• Direct Taxation
• Indirect Taxation
• Corporate and Other Laws
• International Taxation
• Statutory Due Dates for March 2014

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• DIRECT TAXATION Index
• MF unit redemption wont attract tax
• The Central Board of Direct Taxes has clarified
  that redemption or repurchase of mutual fund
  units would not attract taxes (under distributed
  income), as such income is not in the nature of
  income distributed to unit-holders.
• The CBDT also said bonus units at the time of
  issue would not be subjected to additional income
  tax since an issue of bonus units was not akin to
  dividend distribution. It added that the Income
  Tax Act prescribed that the cost of acquisition
  of bonus units should be treated as nil for the
  purposes of computation of capital gains tax.
• Non-Filing of ITR-V in returns with refund
  claims-relaxation of time- limit for filing
  ITR-V and processing of such returns -regarding.
• In order to mitigate the grievances of the
  taxpayers pertaining to non-receipt of tax
  refunds, Central Board of Direct Taxes, in
  exercise of powers under section 119(2)(a) of the
  Act, hereby further relaxes and extends the date
  for filing ITR-V Form for Assessment years
  2009-10, 2010-11 and 2011-12 till 31.03.2014 for
  returns e-Filed with refund claims within the
  time allowed under section 139 of the Act.
  Further it says that, such returns shall be
  processed within a period of six months from end
  of the month in which ITR-V is received and the
  intimation of processing of such returns shall be
  sent to the assessee concerned as per laid down
  procedure.  

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• INDIRECT TAXATION Index
• Interim Budget
• Lok Sabha on Wednesday 19.02.2014  passed the
  Interim Budget for the financial year
  2014-15 .The following are the major highlights
  of amendments in Indirect Taxes
• Amendments in Excise Duty
• The excise duty structure on mobile handsets has
  been restructured so as to provide that all
  mobile handsets will attract 1 excise duty if
  CENVAT benefit is not availed of. The duty will
  be 6 if CENVAT benefit is availed of.
  Consequently, all imported mobile handsets shall
  attract 6 CVD
• The general excise duty on all machinery
  equipment, appliances etc and parts thereof
  falling under Chapters 84 and 85 of the Central
  Excise Tariff has been reduced from 12 to 10.
• The excise duty on small cars, motor cycles,
  scooters, commercial vehicles and trailers has
  been reduced from 12 to 8 and on SUVs from 30
  to 24. The excise duties on large and mid
  segment cars have been reduced from 27 and 24
  to 24 and 20 respectively. In line with the
  duty reduction on commercial vehicles, the excise
  duty on chassis has been reduced appropriately.
  Duty has also been reduced on hybrid motor
  vehicles, hydrogen vehicles, etc.

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• INDIRECT TAXATION Index
• Amendments in Customs
• 1)   Full exemption from customs duty on pulses
  valid till 31.03.2014 has been extended by
  another 6 months i.e.up to 30.09.2014
• 2)   CVD exemption hitherto available on
  specified road construction machinery has been
  withdrawn. These specified machinery will
  henceforth attract CVD and SAD. Exemption from
  the basic customs duty will however continue
• 3)   The basic customs duty structure on
  non-edible grade industrial oils and its
  fractions, palm stearing, fatty acids and fatty
  alcohols has been rationalized at 7.5
• 4)   LNG consumed in the authorized operations
  in the ONGC SEZ unit at Dahej and the remnant LNG
  cleared into the domestic tariff area (DTA) has
  been exempted from basic customs duty and CVD
• 5)   A concessional basic customs duty of 5 CVD
  (Nil) SAD (Nil) has been provided to capital
  goods imported by Bank Note Paper Mill India
  Private Limited. The exemption is valid up to 3
  1.12.2014
• 6)     Human embryo has been fully exempted from
  customs duty.
• Amendments in Service Tax
• All service related to Rice like handling,
  storage, warehousing, transport, milling and
  services provided by cord blood bank by way of
  preservation of stem cells or any other service
  related to such preservation are exempt from
  service Tax.

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• CORPORATE AND OTHER LAWS Index
• Use of word National in the names of Companies
  or Limited Liability
• Partnerships (LLPs)
• It has come to the knowledge of Ministry of
  Companies Affairs that Companies / Limited
  Liability Partnerships are being registered with
  the word National in their names. It is being
  intimated that no company should be allowed to be
  registered with the word National as part of
  its title unless it is a government company and
  the Central / State government(s) has a stake in
  it. This should be stringently enforced by all
  Registrar of Companies (ROCs) while registering
  companies. Similarly, the word Bank may be
  allowed in the name of an entity only when such
  entity produces a No Objection Certificate from
  the RBI in this regard. By the same analogy the
  word stock Exchange or Exchange should be
  allowed in name of a company only where No
  Objection Certificate from SEBI in this regard
  is produced by the promoters.

Newsletter March 2014
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• INTERNATIONAL TAXATION Index
• OECD unveils mechanism to combat tax evasion
• Global economic body OECD on Thursday, February
  13, unveiled a new game-changing mechanism to
  combat the menace of offshore tax evasion, a
  protocol to which India is a signatory with the
  purpose of tackling black money. The Organization
  for Economic Cooperation and Development have
  formally presented the standard for the
  endorsement of G20 finance ministers during a
  February 22-23 meeting in Sydney in Australia,
  the world body, whose economic policies are
  followed by over 120 countries.
• The G20 invited the OECD to develop a global
  standard on automatic exchange of information in
  2013 and remains the driving force behind the
  move toward greater tax transparency worldwide.
  India has already signed the OECD's global
  standard for automatic exchange of information
  between tax authorities two years back and once
  the new format is implemented, the country will
  follow the new protocols envisaged in it.

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• STATUTORY DUE DATES FOR MARCH 2014 Index
• Statutory Due Dates Calendar for March 2014

Due Date Statutory Compliance
5th March 2014 Payment of Service Tax/ Excise duty
7th March 2014 Payment of TDS
15th March 2014 Payment of Provident Fund contribution/ Profession Tax
15th March 2014 Payment of Advance Income Tax
21st March 2014 Payment of ESIC/ MVAT
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