INDEX Direct Taxation Indirect Taxation Corporate and Other Laws International Taxation

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2. INDEX • Direct Taxation • Indirect Taxation • Corporate and Other Laws • International Taxation • Statutory Due Dates for March 2014 TM Newsletter –March 2014

3. DIRECT TAXATION Index • MF unit redemption won’t 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. TM Newsletter – March 2014

4. INDIRECT TAXATION Index • Interim Budget LokSabha 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. TM Newsletter – March 2014

5. 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. TM Newsletter – March 2014

6. CORPORATE AND OTHER LAWSIndex • 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. TM Newsletter – March 2014

7. 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. TM Newsletter – March 2014

8. STATUTORY DUE DATES FOR MARCH 2014 Index • Statutory Due Dates Calendar for March 2014 TM Newsletter – March 2014

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