THE COMPLIANCE GALAXY 2012-13.pdf

THE COMPLIANCE GALAXY

2012-13

INSIDE THE ISSUE:

› Compliance calendar……………….02› Rate chart……………………………07› Corporate updates at a glance……...13

The Compliance Galaxy2012-13

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VAT- Andhra Pradesh Value Added Tax Act 2005CST- Central Sales Tax, 1956SSI- Small Scale IndustryECB- External Commercial BorrowingNBFCs - Non-Banking Financial Companies NBFCs-D- Deposit taking NBFCsNBFCs-ND- Non-Deposit taking NBFCs.NBFCs-ND-SI- NBFCs not accepting/holding public deposits and having asset sizes of Rs.100 crore and aboveAPTPTCE Act – Andhra Pradesh Tax on Professions, Trade, Callings and Employment Act 1987APLW Act - AP Labour Welfare Act, 1970

COMPLIANCE CALENDARA Compliance Calendar assists a business entity to plan the payment and submission of various reports, certificates, returns, information, documents before the due date rings the door bell. Hence, following is the list of monthly, quarterly, half-yearly and yearly compliances applicable to various business entities which wouldassist an organization in timely compliances under various legislations:

MONTHLY COMPLIANCES

DUE DATE

LEGISLATION NATURE OF COMPLIANCE

5thService Tax Payment for the previous month (For Corporate Dealers)

(If payment is made through cheque)

Central Excise Act 1944 Payment for the previous month (In case of Non SSI Dealer)(If payment is made through cheque)

6thService Tax Payment for the previous month (For Corporate Dealers)

(If payment is made otherwise than through cheque)

Central Excise Act Payment for the previous month (For Corporate Dealers)(If payment is made otherwise than through cheque)

7th

Income Tax Act, 1961 Payment of TDS/TCS for the previous month

VAT/CST Payment for the month of March

VAT/CST Filing of return for the month of March

ECB Filing of return for reporting of actual transactions of ECB

RBI Guidelines Monthly Return on Capital Market Exposure to be submitted by NBFCs-D

RBI GuidelinesMonthly Return on Important Financial Parameters of NBFCs not accepting/holding public deposits and having asset size of Rs.100 crore and above to be submitted by NBFC-ND-SI

10th

Excise Filing of return for the previous month(In case of Non SSI Dealer)

APTPTCE Act Payment & Filing for the previous month (By Employer)

APLW Act Payment of contribution for the previous month

RBI Guidelines A Statement of short term dynamic liquidity to be submitted by NBFC-ND-SI

15thVAT Payment for the previous month (If payment is made through cheque)

CST Payment for the previous month (If payment is made through cheque)


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EE (CNV) Act - Employment Exchange (Compulsory Notifications of Vacancies) Act 1959TDS- Tax deducted at sourceTCS - Tax collected at SourceEPF- Employees Provident Fund and Misc. Provisions Act 1952

15th

The AP Entertainment Tax 1939

Payment & Filing of return for the previous month(Amusement & Recreation)

Entry Tax Act 2001 Payment & Filing of return for the previous month (Non registered dealers)

AP Tax on Luxuries Act 1987 Payment & Filing of return for the previous month

EPFPayment of contribution for the previous month

Filing of Declaration for employees joined during the previous month Employees State Insurance Act 1948(ESIC)

Filing of Declaration for employees joined during the previous month

20th

VATPayment for the previous month (If payment is made otherwise than through cheque)Filing of return for the previous month

CST Filing of Return for the previous month The AP Entertainment Tax 1939 Payment & Filing of return for the previous month (Others)

Entry Tax Act 2001 Payment & Filing of return for the previous month (Registered Dealers)

21stESIC Payment of contribution for the previous month

VAT Payment of Works Contract Tax (TDS) for the previous month

25th EPF

Filing of Consolidated Statement of duesFiling of return for employees qualifying for the first time under the actFiling of return for employees resigned from the organization

Filing of nomination form for new joinees

30th EE (CNV) Act Filing of notification of vacancies

QUARTERLY COMPLIANCES

DUE DATE LEGISLATION NATURE OF COMPLIANCE

05th of July, Oct, JanService Tax Payment for the previous month (For Corporate Dealers)

(If payment is made through cheque)

Central Excise Act Payment for the previous month (For Corporate Dealers)(If payment is made through cheque)

06th of July, Oct, JanService Tax Payment for the previous month (For Corporate Dealers)

(If payment is made otherwise than through cheque)

Central Excise Act

Payment for the previous month (For Corporate Dealers)(If payment is made otherwise than through cheque)

10th of July, Oct, Jan & April Filing of return for the previous quarter


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NBFC APD - Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1999 NBFCs PN (RB) D - Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998APSE Act - AP Shops & Establishments Act 1988I-T Act- Income Tax Act 1961

10th of July, Oct, Jan & April APSE Act Filing of return for the previous quarter

15th of July, Oct, JanI-T Act

Filing of TDS/TCS return for the previous quarter

15th of May Filing of TDS/TCS return for the quarter ended March15th of July, Oct, Jan & April EE (CNV) Act Filing of return for the previous quarter

15th of June, Sept, Dec & March I-T Act Payment of Installment of Advance Tax

30th of July, Oct, Jan & April

VAT Payment of Turnover Tax & Filing of return for the previous quarter

VAT/CST Filing of C-Form details and utilized way bill details for the previous quarter

30th of Nov Central Excise Act Filing of Annual Financial Information Statement for the previous Financial year

31st of March Service Tax Payment for the previous month (For Corporate Dealers)

15th of April, July, Oct, Jan

NBFC APD Submission of Quarterly Return by NBFCs-D

NBFCs PN (RB) D Submission of Quarterly Statement of Capital Funds, Risk Assets etc by NBFCs-D

RBI Act Submission of Quarterly Return on Statutory Liquid Assets by NBFCs-D

RBI Act Submission of Quarterly Return on repayment of deposits by rejected companies holding public deposit

RBI Act Submission of Quarterly Return of Capital Funds, Risk Asset Ratio by NBFCs-ND-SI

31st of March Central Excise Act Payment for the previous quarter (For SSI Registered Dealers)

30th of April, July, Oct, Jan RBI Guidelines

Quarterly return to be submitted by non-deposit taking NBFCs with asset size of Rs 50 crore and above but less than Rs 100 crore

Within 15 days of end of quarter Listing agreement Submission of Compliance Report on Corporate

GovernanceWithin 21 days of end of quarter Listing agreement Submission of Share holding Pattern to the Stock

Exchange

30th of July, Oct, Dec, March

SEBI (Depositories & Participants) Regulations, 1996 & SEBI Circular No. D&CC/FITTC/Cir-16/2002 dated 31.12.02

Submission of Reconciliation of Share Capital Audit Report

Before the end of quarter Listing agreement Holding of Audit Committee Meeting

Before the end of quarter Companies Act Holding Board MeetingWithin 48 hours of Board meeting Listing agreement Publication of quarterly results in newspapers

(English & Vernacular Language)


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TDS- Tax deducted at sourceFEMA – Foreign Exchange Management Act 1999CL Act - Contract Labour (Regulation & Abolition) Act 1970

Within 45 Days of the end of Quarter

Listing AgreementLimited Review Report from the Statutory Auditors (in case of submission of Unaudited last quarter results)

HALF YEARLY COMPLIANCES


12th of May & Nov ESIC Filing of return for the previous Half year ended

15th of July Factories Act, 1948 Filing of Half yearly return

25th of Oct & April Service Tax Filing of return for the previous Half year ended

20th April/ 20th Oct RBI GuidelinesSubmission of Statement of structural to be submitted by NBFC-ND-SI

20th April/ 20th Oct RBI GuidelinesSubmission of Statement of Interest Rate Sensitivity to be submitted by NBFC-ND-SI

30th April/ 30th Oct RBI GuidelinesSubmission of Asset-Liability Management (ALM) Return to be submitted by NBFCs-D having public deposit of Rs 20 crore

30th of July & Jan CL Act Filing of Half yearly return

Within 30th April and shall be submitted to the Exchange within 24 hours after signing of PCS

Listing AgreementCertificate from Practising Company Secretary (PCS) under Clause 47C

ANNUAL COMPLIANCES


30th of April

ExciseFiling of Annual Installed Capacity Statement for financial year ended

APTPTCE ActRenewal of Professional Tax registration

Filing of Annual return statement

EPF Filing of Annual Return of contribution cards

30th of June APTPTCE Act Payment of tax for Directors & Company

15th of July FEMAFiling of Annul Return on Foreign Assets & Liabilities under FEMA

31st of JulyIncome Tax

Filing of income tax returns (In case of non audit entity)

30th of Sept Filing of Income tax returns (in case of Audit entities)


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NBFC

Annual Returns By deposit taking NBFCs (As required by “Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1998”.) to be submitted by NBFCs-D

31st of Oct CL Act Application for renewal of license

30th of Nov APSE Act Renewal of registration

30th of DecPayment of Bonus Act, 1965

Filing of Annual return

31st of DecVAT Submission of Audited Trading, P & L Account

APLWAct Filing of Yearly return

15th of Jan Factories Act, 1948 Filing of Annual return

01st of Feb

Minimum Wages Act, 1948


Payment of Wages Act, 1936


15th of Feb CL Act Filing of Annual return

30th of AprilListing Agreement Annual Listing Fees

Listing Agreement Annual Custodial fees to NSDL/CDSL

30th of June Companies Act, 1956 Return of Deposits

Within 45 days of the end of Quarter

Listing AgreementIntimation regarding submission of Annual audited Results (if unaudited last quarter results not submitted)

30th of May Listing AgreementSubmission of Annual Audited (along with audit report) if last quarter unaudited results not submitted

Within 2 working days of receipt of information u/r 13(3) & (4)

SEBI (Prohibition ofInsider Trading) Regulations, 1992

Annual disclosures under regulation 13(6) regarding Details of change in shareholding

Within 6 months from the close of financial year

Companies Act, 1956 Holding Annual General Meeting (AGM)

Within 30 days of date of AGM

Companies Act, 1956Filing of Balance sheet, Profit and Loss Account and other documents

Within 60 days of date of Annual general meeting

Companies Act, 1956 Filing of Annual return


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RATE CHARTRATES UNDER AP VALUE ADDED TAX

S. No

Particulars Rate

SCHEDULE RATES1. Schedule I 0%2. Schedule III 1%3. Schedule IV 5%4. Schedule V 14.50%5. Schedule VI Special Rates

COMPOSITION SCHEME6. Works contract executed for State Government or Local authority 4%7. Works contract executed for other than state Government or Local

authority4%

8. Apartment Builders and Developers 4% on 25% of total consideration

STANDARD DEDUCTIONS FOR WORKS CONTRACT9. Electrical Contracts 15% to 25%10. All structural contracts 35%11. Installation of plant and machinery 15%12. Fixing of marble slabs, polished granite stones

and tiles (other than mosaic tiles)25%

13. Civil works like construction of buildings,bridges roads etc

35%

14. Design, fabrication and installation of centralized Air-conditioning plant, Air Handling units, Refrigeration plants and any other Heating, Ventilating and Air Conditioning Systems.

5%

15. Fixing of sanitary fittings for plumbing, drainage and the like 15%

16. Painting and polishing 25%17. Laying of pipes 25%18. Tyre re-treading 40%19. Dyeing and printing of textiles 40%20. Printing & Supplying of printed material 40%21. All other contracts 30%

TDS ON WORKS CONTRACT TAX22. All categories of contracts not falling in sub-clauses (ii) 4% of 70% of total

consideration23. Contracts for laying or repairing or roads and contracts for canal

digging, lining and repairing.2% of 70% of the amount


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AP TURNOVER TAX RATE

Particulars RateOn total sale value 1 %

CENTRAL SALES TAX RATES

Particulars Rate

On Gross value of Inter-state sales transaction 2% (or) the state level VAT rate, whichever is lower

AP PROFESSIONAL TAX RATES

Category Range Rate (Rs.)Directors -- 2500/- P.A.Estate Agents or Brokers -- 550/- P.M.Companies -- 2500/- P.A.Partners -- 500/- P.A.Occupiers of Factories -- 1000/- P.ASub-brokers recognized by the Stock Exchange Board of India

-- 1000/- P.A.

Property Developers including Land Developers and Building / Flat Developers

-- 2500/- P.A.

Owners of Residential hotels and lodging houses having > 20 rooms

-- 2500/- P.A.

Individuals or institutions conducting Chit funds

-- 2500/- P.A.

Chartered Accountants >2 and < 5 years in profession 500/- P.A.> 5 years in profession 2500/- P.A.

Salary & wage earners Range 5001 to 6000 60/- P.M.Range 6001 to 10000 80/- P.M.Range 10001 to 15000 100/- P.M.

Range 15001 to 20000 150/- P.M.Above 20000 200/- P.M.

Contractors Class I 2500/- P.A.Class II 1500/- P.A.Class III 500/- P.A.

Other Contractors Work executed < 10lacs 500/- P.A.Work executed > 10lacs 1500/- P.A.

Employers Under AP Shops & Establishment Act

Employees >1 and < 5 110/- P.A.

Employees >5 and < 10 400/- P.A.Employees >10 and < 20 1000/- P.A.


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Employees > 20 2500/- P.A.Co-operative Societies State level Society 2500/- P.A.

Co-Operative Sugar Factories, Spinning Mills, Banks

2500/- P.A.

District level Society 330/- P.A.Mandal level Society 220/- P.AVillage level Society 150/- P.A

Persons other than the above 750/- P.A

SERVICE TAX RATES

Particulars Rate on the gross value of services rendered

Registered dealers under service tax 12% Nature of taxable service Abatement Rate

Mandap keeper Service 60%Tour Operator Service in relation to package tour 75%Tour Operator Service (booking of accommodation) 90%Tour Operator Service (other than above two mentioned) 60%Renting of Cab 60%Renting of hotels, inn, guest houses clubs others 40%Supply of food or any other article of human consumption at Convention service, hotels, clubs, pandal, shamiana or any other place specially arranged for organizing function

30%

Services involved in supply of food or any other article of human consumption or any drink restaurant at (which has licence to service alcoholic beverages)

70%

Services involved in supply of food or any other article of human consumption or any drink as outdoor catering service

40%

Chit Service 70%Business Auxiliary Service 30%Erection Commission & installation service 67%GTA 75%Financial leasing service 90%Pandal & Shamiana 30%Construction of complex When land value is includedWhen land value is not included

75%67%

Transport of goods by rail 70%Transport of passengers by rail 30%Aircraft operator 40%


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Nature of taxable service Optional schemeInsurer 3% of the premium charged in the first year and 1.5% in

subsequent yearsForeign Exchange 0.12% of the gross amount of currency exchanged for an amount upto rupees

100,000, subject to the minimum amount of Rupees 30; and

Rupees 120 and 0.06 per cent. of the gross amount of currency exchanged for an amount of Rupees exceeding 100,000 and upto rupees 10,00,000; and

Rupees 660 and 0.12 per cent. of the gross amount of currency exchanged for an amount of rupees exceeding 10,00,000, subject to maximum amount of rupees 6000:

Composition rate 4.80%

CENTRAL EXCISE DUTYParticulars Rate

Basic Duty Proposed in Budget 2012 12 %

LUXURY TAXParticulars Rate

Luxuries provided by HotelsCharges below Rs. 300/- Per day per person NilCharges above Rs. 300/- Per day per person 5%

Luxuries provided by Corporate HospitalsCharges below Rs. 500/- Per day per person NilCharges above Rs. 500/- Per day per person 10%

Tobacco ProductsChewing Tobacco preparations commonly known as Khara, Masala, Kimam, Dokta, Zarda, Sukha and Surti.

50 paise in every rupee

Cigarettes 05 paise in every rupee

INCOME TAX RATES

FY 2011-12 Rate FY 2011-12 RateUpto1,80,000 (Individuals, HUF, AOP, BOI, AJP)

Nil Upto 2,00,000 (Individuals, HUF, AOP, BOI, AJP)

Nil

Up to 1,90,000 (for women) Nil Up to 2,00,000 (for women) NilUp to 2,50,000 (for resident individual of 60 years or above)

Nil Up to 2,50,000 (for resident individual of 60 years or above)

Nil


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Up to 5 Lacs (senior citizens > 80years)

Nil Up to 5 Lacs (senior citizens > 80years)

Nil

1,80,001 – 5,00,000 10% 2,00,001 – 5,00,000 10%5,00,001 – 8,00,000 20% 5,00,001 – 10,00,000 20%8,00,001 upwards 30% 10,00,001 upwards 30%

ENTERTAINMENT TAX

Particulars RateA/C and Air Cooled Theatres 20%Other Theatres 18%

SURCHARGE RATE

Particulars RateOn domestic companies (Total Income > 1 Crocre) 5%On other than domestic companies (Total Income > 1 Crocre) 2%

EDUCATION CESSParticulars Rate

Education cess on income tax 2%Secondary & Higher education cess on income tax 1%

PROVIDENT FUND CONTRIBUTION

Particulars RateEmployers contribution to Provident Fund 3.67%Employers contribution to Pension Fund 8.33%Employers contribution to EDLI 0.5%Employers contribution towards the Administrative charges for Provident Fund 1.10%Employers contribution towards the Administrative charges for EDLI 0.01%Employee contribution 12%

ESI CONTRIBUTION

Particulars RateEmployers contribution 4.75%Employee contribution 1.25%


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TDS RATES

Nature of Payment Section Code Individual /HUF

Others

Salary 192 Avg Rate Avg RateInterest on Securities 193 10% 10%Deemed Dividend 194 10% 10%Interest other than Interest on securities (By bank & others)

194A 10% 10%

Winning from Lotteries & Puzzles 194B 30% 30%Winning from Horse Race 194BB 30% 30%Payment to Contractors 194C(1) 1% 2%Payment to Adverting/Sub contractors 194C(2) 1% 2%Insurance Commission 194D 10% 10%Payment out of deposits under NSS 194EE 20% -Repurchase of Units by MF/UTI 194F 20% 20%Commission on sale of Lottery tickets 194G 10% 10%Commission & Brokerage 194H 10% 10%Rent – Land & Building 194I 10% 10%Rent – Plant & Machinery 194I 2% 2%Professional Fee & Technical Services, Royalty & non compete fee

194J 10% 10%

Remuneration to Directors (Proposed in Budget 2012)

194J 10% 10%

Compensation on acquisition of immovable property

194LA 10% 10%

TCS RATES

Nature of Goods Rate %Alcoholic liquor for human consumption 1%Tendu Leaves 5%Timber obtained from forest lease 2.5%Timber obtained from any mode other than forest lease 2.5%Any other forest produce not being timber or tendu leaves 2.5%Scrap 1%Parking lot 2%Toll plaza 2%Mining & Quarrying 2%Cash transaction in bullion and Jewellery (Proposed in Budget 2012) 1%Sale of Coal, Lignite and Iron ore 1%


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CORPORATE UPDATES AT A GLANCE(FY 2011-12)

MCA› Schedule VI to the Companies Act, 1956 revised – Revised schedule VI applicable to all the companies

uniformly for the financial statements to be prepared for the financial year ended 31st March, 2012 onwards

› DIN procedure simplified - DIN application is to be made online pre-certified by a professional through e-form DIN1 and no physical submission of documents shall be required

› Payment of Commission to Non-Whole time Directors of the company under section 309(4)(b) of the Companies Act, 1956 shall not require approval of the Central Government

› Payment of fees through Electronic Mode made mandatory - payments of value upto Rs. 50,000, shall be made only in electronic mode. For the payments of value above Rs. 50,000, stakeholders would have the option to either make the payment in electronic mode, or paper challan

› Delegation of Power Central Government to Regional Directors and Registrar of Companies for incorporation of Section 25 companies to reduce the time

› Limits Enhanced from Rs.50,000/- to Rs. 2,50,000/- for obtaining approval of the Central Government for payment of remuneration to office or place of profit

› Limits Enhanced from Rs. 24 lacs P.A to Rs. 60lacs P.A for Disclosure of Particulars of Employees Under Section 217(2A) of Companies Act, 1956

› Green Initiatives in Corporate Sector - Company would have complied with Section 53 of the Companies Act, if the service of document has been made through electronic mode instead of Under Posting certificate (UPC)

› Appointment of Cost Auditor by Companies reviewed - Appointment of cost auditor needs to be first considered by the Audit Committee and upon the recommendation of the audit committee Board can make the appointment of Cost Auditor

› Informing PAN through DIN - Directors who have not furnished their PAN earlier at the time of obtaining DIN are required to furnish their PAN by filing e-form DIN-4

› Word “partnership” in ICAI, ICWAI, ICSI Acts include LLPs - The words “partnership” wherever occurring in the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959 and the


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Company Secretaries Act, 1980 shall mutatis mutandis be construed as including those Limited Liability Partnerships

› Green Initiatives in the Corporate Governance:

Issue of Certificates by RoC by Digital Signature

Ministry allows holding shareholders' meetings through video conferencing

Participation by Directors in Board / Committee Meetings through video conferencing

Approval of appointment of agency for providing electronic platform for e-voting under Companies Act, 1956

› Filing of event based forms not to be accepted until Annual forms/returns are filed - No e-filing shall be accepted by the RoC from Directors of defaulting companies for any other company also until updated Balance Sheet and Profit & Loss Accounts and Annual Return are filed with the Registrar of Companies

› Settlement of prosecutions cases through Lok Adalats – MCA organized Lok Adalats for swift disposal of pending prosecution cases against companies/directors

› Fast Track Exit mode for defunct companies - Companies inoperative since incorporation or commenced business but became inoperative/defunct later on may apply for getting their names strike off from the RoC

› Payment of MCA 21 Fees via NEFT - NEFT payment option will eliminate inconveniences caused due to payment processing delays

› Synchronization of DPIN with DIN – MCA has decided to issue only one identification number to an individual for both the purpose DIN & DPIN

› Waiver of approval of Central Government for payment of remuneration to professional managerial person by companies having no profits or inadequate profits

› Simplified Procedure for amalgamation of Government Companies U/s 396 of the Companies Act, 1956 -Every Central Government Company which is applying to the Central Government for amalgamation with any other Government Company or Companies shall obtain approval of the Cabinet i.e. Union Council of Ministers

› The Companies (Passing of the resolution by Postal Ballot) Rules, 2011 provides for voting by electronic mode - voting by shareholders may be carried on in electronic mode


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RBI/FEMA

› Central Registry, a public database, established to prevent frauds in loan cases involving multiple lending from different banks on the same immovable property

› FII investment limit in listed non-convertible debentures / bonds, with a residual maturity of five years and above, and issued by Indian companies in the infrastructure sector enhanced from USD 5 billion to USD 25 billion

› With a view to liberalising the import procedure limit for requirement of furnishing bank guarantee increased from USD 100,000 to USD 200,000 or its equivalent

› To provide operational flexibility and ease the procedure for FDI related transactions, RBI has decided to permit AD to open and maintain, without its prior approval non-interest bearing Escrow accounts in Indian Rupees in India on behalf of residents and / or non-residents, to facilitate FDI transactions

› Pledge of shares of an Indian company held by non-resident investor/s in favour of AD Category - I banks allowed

› Bank loans to all MFIs, including NBFCs working as MFIs on or after April 1, 2011, will be eligible for classification as priority sector loans

› With a view to providing more operational flexibility to Indian corporates having investments abroad, it has been decided to further liberalise / rationalise as following:

a. Only 50 per cent of the amount of the performance guarantees to be reckoned for the purpose of computing financial commitment to its JV/WOS overseas;

b. Indian promoters who have set up WOS abroad or have at least 51% stake in an overseas JV, may write off capital (equity / preference shares) or other receivables and management fees in respect of the JV/WOS;

c. Listed Indian promoter companies with net worth of less than Rs.100 crore and investment in an overseas JV/WOS not exceeding USD 10 million allowed for disinvestment under the Automatic Route;

d. Issue of guarantee by an Indian party to step down subsidiary of JV/WOS now under general permission

› The issuance of equity, preference shares under the government route of the foreign direct investment scheme permitted for some categories


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› Designated AD Category-I banks to approve the request from the ECB borrowers with respect to change in the recognized lender

› Enhancement of ECB limit under the automatic route to USD 750 million or equivalent per financial year

› Transfer of shares between resident and non-resident investors allowed under the foreign direct investment route without its prior permission with certain exceptions

› Based on the recommendations of the Malegam Committee Report a new Category of NBFCs-‘Non Banking Financial Company-Micro Finance Institutions’(NBFC-MFIs) introduced

› Powers for Compounding of Contraventions under FEMA, 1999 delegated to regional offices

› Restrictions under Section 20 of the Banking Regulation Act, 1949 would apply to grant of loans and advances to spouse and minor/dependent children of the Directors of banks as well

› Revised procedure for Reporting of Software Exports introduced for those software exporters whose annual turnover is excess of Rs. 1,000 Crores or who submits at least 600 Softex Forms annually

› Limit for foreign exchange remittance towards imports without any documentation formalities, enhanced from USD 500 or its equivalent to USD 5000 or its equivalent

INCOME TAX

› Government proposes to issue biometric PAN card to the asssessee

› Firm or individual/HUF covered under section 44AB are mandatorily required to file ITR-5 or ITR-4 electronically using digital signature

› Prior permission from the income tax authorities needed for creating a charge

COMMERCIAL TAX

› Due date for payment & filing o f Professional Tax Return has been revised to 10th of every month

› VAT @ 20% has been imposed on certail tobbaco products

› VAT rate for schedule IV products been increased to 5% from the existing 4%


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› Agents selling agricultural produce on behalf of agricultural principals are been exempted from VAT Registration

› Interest for delay in payment of vat amount has been increased to 1.25% from the existing rate of 1%

› The marginal Textile dealers with an annual taxable turnover of above Rupees 5 Lakhs and below Rupees 40 Lakhs will be subjected to levy of tax at the rate of only 1%

› Textile and sugar are exempted from tax under CST Act vide GO. MS. 2328 and is still in force

› Dealers who are engaged in integrated activity of Printing & Supplying of printed materials may have an option to pay tax by way of composition @ 4% on 60% of total value of such supplies received and receivable

› Input tax credit for the dealers paying VAT under Section 4 (7)(a) of AP VAT Act has reduced to 75%

SERVICE TAX

› Club or association service provided by a registered cooperative society has been exempted from service tax

› With effect from 01.04.2012 service tax will need to be charged at 12.36%

› Limits under the alternate payment option given to foreign exchange service proverders has been enhanced

› Abatement of 60% has been granted to aircraft operator for rendering service to passengers on domestic and international journey

› The composition rate of service tax on works contract has been amended to 4.80% from the existing 4%

› 34 new services has been introduced and enlisted under service tax exemption category

› Notification has been passed in regard to certain category of service where both service receiver and service provider are made liable for the payment of service tax.

› Medical services in terms of sub-clause (zzzzo) of section 65(105) has been exempted from service tax

› Exemption has been granted to the taxable service as referred to in sub-clause (zzzzw) of clause (105) of section 65 of the said Act, when the declared tariff for providing of such accommodation is less than rupees 1000 per day from the whole of the service tax leviable thereon under section 66 of the said Act.


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EXCISE

› E-Filing of excise returns has been made mandatory from 01.10.2011

› Products such as uniforms or made-up articles like quilt, blankets, towels, linen etc. bearing the name or logo of a school, security agency, company, hotel or airline etc would not merit treatment as “branded” products

CUSTOMS

› Custom officials may permit Re-export of goods and DEPB Credit tcrip for goods imported under DEPB credit to the exporters

› OSPCA (On Site Post Clearance Audit) will be initiated in respect of ACP - Accredited Client Programme

› CBEC imposed definitive anti-dumping duty on the imports of Coumarin originating in, or exported from, the People’s Republic of China which are imported into India

SEBI› With a view to enhance information available in the public domain on performance of asset pools on which

securitized debt instruments are issued, it has been decided to put in place a Listing Agreement for securitized debt instruments

› ASBA (Applications Supported by Blocked Amount) facility mandatory for all non-retail investors (HNIs and institutional investors) investing in public and rights issues

› Methodology of calculating the Annual Issuers charges changed. The annual issuers’ charges would be based on the average no. of folios (ISIN positions) during the previous financial year instead of the total number of folios (ISIN positions) as on 31st March of the previous financial year

› SEBI to allow investors eligible for differential pricing to make the payment of discounted price at the time of bidding itself, subject to compliance of appropriate disclosure and other norms

› Mutual Funds/AMCs have been advised to invariably provide an option to the investors to to hold units in demat form


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› Guidelines for change of name of listed companies liberalized. New rules facilitates change of name even if amount invested in the new activity/project (Fixed Assets + Advances + Works in Progress) is at least 50% of the assets of the company

› New Centralized web based complaints redress system ‘SCORES’ (SEBI Complaints Redress System) launched for speedy processing of investor complaints

› Stock Exchanges may consider granting membership to LLPs subject to LLP complying with the conditions laid down in Rule 8(4A) of the SCRR

› SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 notified in place of erstwhile takeover code for enhanced governance of the securities as well as capital market

› Amendments to the Equity, IDR and SME Equity Listing Agreements:

a. Listed entities shall also submit the last quarter results along with the audited annual resultsb. Submission of unaudited results shall be accompanied by the limited review report of the auditorsc. Soft copies of full annual reports to be sent all those shareholders who have registered their email

addresses for the purpose

› Merchant bankers to disclose the track record of the performance of the public issues managed by them

› BSE and NSE (Stock exchanges) mandated to provide a separate window, i.e. apart from the existing trading system for the normal market segment, to facilitate promoters of listed companies (which are required to comply with minimum public shareholding requirements) to dilute/offload their holding in listed companies in a transparent manner with wider participation

› To kick start the stock exchange for small and medium enterprises (SMEs), the capital market decided to standardize the lot size lot size for initial public offer (IPO) proposing to list on SME exchange.

………….


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DISCLAIMER

The above information is only indicative and solely for informational purpose and private circulation. RANJ & Associates, Company

Secretaries intend to, but do not guarantee or promise that it is correct, complete / up-to-date. We expressly disclaim any liability to

any person in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the

contents of this document. The information in this document is as of April 01, 2012.

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THE COMPLIANCE GALAXY 2012-13.pdf

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