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Hi Folks
Brazilian fans were numbed with their team’s colossal 1-7 loss to Germany at FIFA, 2014. At times, we professionals are no better than football, kicked around by not just 2 teams but several Departments & Ministries hurling heaps of notifications, amendments, clarifications, circulars etc. at us. This can be equally numbing. We have no choice but to take cognizance of the
same and surge ahead. For a change, let me be brief to allow you time to read through the Union Budget, 2014-15 tax proposals, RBI Master Circulars on various matters and MCA’s list of clarifications.
Should you wish to refer to any of our older issues, do visit our Resource Centre at sharadasc.com.Warm regards

Select Notifications and Circulars enclosed D.O. letter which explains the Budget changes can be downloaded.
  Direct Taxes

  • Corporate Tax rates remain unchanged.
  • Investment in Plant and machinery by manufacturing companies greater than Rs.25crores eligible for investment allowance @ 15% upto 31.03.2017.
  • Concessional rate of 15% on foreign dividend continues.
  • Basic Income Tax exemption increased by Rs.50,000/- for both Individuals and senior citizens.
  • Tax exemption savings limit is Rs. 1,50,000/-
  • PPF saving limit increased to Rs.1,50,000/-
  • Housing loan rebate raised to Rs. 2,00,000/-
  • And a few more changes…….
  Indirect Taxes

  Customs Duty

  • To increase domestic manufacture and investment, Basic custom duty (BCD) reduced on certain specified items (Electronic, chemicals and petrochemicals etc).
  • Duty on LED and LCD TVs below 19 inches exempted to increase production.
  • BCD on imported products of stainless steel increased to 7.5%.
  • BCD on coal products and metallurgical coke increased.
  • Free baggage allowance for passenger facilitation up from Rs. 35,000 to Rs. 45,000.
  • And a few more changes…….
        Excise Duty

  • Duty on Footwear and food packages reduced.
  • Additional duty of 5% levied on aerated drinks with added sugar.
  • Duty hike on Cigarattes – 72%, pan masala – 16%, Tobacco unmanufactured – 55% and Gutkha – 70%.
  • E-payment by all assesses made mandatory subject to certain exceptions.
  • CENVAT Credit restricted to 6 months.
  • And a few more changes…….
        Service Tax

  • The Interest rates raised upto 30% for delay in payment of Service Tax.
  • Service provided by radio-taxis brought under service tax ambit.
  • Service provided or agreed to be provided by Director to a Body Corporate is brought under the Reverse Charge Mechanism. Service receiver is liable to pay service tax.
  • Resident Private Limited Company is eligible as a person to file application for Advance Ruling.
  • And a few more changes…….
  FDI

  • Upto 49% FDI will be allowed in Insurance and Defense sector subject to certain conditions.
  • MNCs with manufacturing facility in India allowed retail business including e-com retail.
Other announcements relating to real estate, MSME, smart cities, Infrastructure, Education, Health, Financial and Banking sector etc are in the “Key features of Budget 2014 – 15”.

  • Rules relating to Companies Cost records and Audit released.
  • MGT-14 made through STP mode except for Change in Name, Object clause, conversion of Company and further issue of capital.
  • ‘No Objection Certificate’ from Forward Markets Commission (FMC) required both from existing companies and new ones proposing to incorporate with the words “Commodity Exchange” in the name.
  • Time limit for filing Form DPT-4 relating to (Outstanding Advances treated as Deposits) extended to 31.08.2014.
  • Clarification issued relating to applicability of Resident Director Provisions for existing Companies, Companies incorporated during April – September 2014 and thereafter.
  • In case of Offer or invitation for Non-convertible debentures special resolution can be passed within 6 months from the commencement of these Rules (from 01.04.2014).
Master Circulars for 2014-15
  • Acquisition and Transfer of Immovable Property in India by NRIs / PIOs / Foreign Nationals of Non-Indian Origin.
  • Compounding of Contravention under FEMA,1999.
  • Direct Investment by residents in Joint Venture (JV) & Wholly Owned Subsidiary (WOS) Abroad.
  • Establishment of Liaison / Branch / Project Offices in India by Foreign Entities.
  • Exports of Goods and Services.
  • External Commercial Borrowings (ECBs) and Trade Credits.
  • Financial Commitment (FC) by Indian Party under Overseas Direct Investments (ODI) – Restoration of Limit
  • Foreign Investment in India
  • Import of Goods and Services.
  • Miscellaneous Remittances from India – Facilities for Residents.
  • Non-Resident Ordinary Rupee (NRO) Account.
  • Remittance Facilities for Non-Resident Indians / Persons of Indian Origin / Foreign Nationals.
  • Foreign Direct Investment (FDI) in India – Revised pricing guidelines for Issue/Transfer of Shares or Convertible Debentures.
Note: The contents of this Newsletter are only a summary and has not dealt with any issue in detail. Any action taken or proposed to be taken must be in consultation with professionals and not merely based on the articles / news updates. Lex Valorem disclaims all liability on action taken without professional advice.

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