tag:blogger.com,1999:blog-74207600440567208752024-03-19T10:05:13.506+05:30Tax UpdaterAiming at Excellence ! Tax Updater brings you a detailed and concise analysis of changes in tax laws in India. We also attempt to understand and analyse latest national and international developments having financial and commercial implications.Unknownnoreply@blogger.comBlogger32125tag:blogger.com,1999:blog-7420760044056720875.post-49584538429254974672012-03-28T16:34:00.000+05:302012-03-28T16:36:13.413+05:30Maharashtra State Budget 2012 - MVAT and other levies<div dir="ltr" style="text-align: left;" trbidi="on">
<div class="Section1">
<u>Part II of the
Maharashtra State Budget – Speech of State FM Ajit <span class="SpellE">Pawar</span> on 26-03-2012.</u><br />
<div class="western" style="margin-bottom: 0.1in; mso-line-height-alt: 5.05pt;">
<u>Sales Tax/MVAT
Proposals</u></div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l7 level1 lfo1; tab-stops: list .5in; text-indent: -0.25in;">
A.<span style="font: 7pt 'Times New Roman';">
</span><u>Review of Tax Collection and <span class="SpellE">Computerisation</span> of Sales Tax Department</u></div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l2 level1 lfo2; tab-stops: list .5in; text-indent: -0.25in;">
1.<span style="font: 7pt 'Times New Roman';">
</span>Start of Pilot Project for compiling economic data.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l2 level1 lfo2; tab-stops: list .5in; text-indent: -0.25in;">
2.<span style="font: 7pt 'Times New Roman';">
</span><span class="GramE">Use of Business Intelligence and Data
Warehousing Tools to interpret data.</span></div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l4 level1 lfo3; tab-stops: list .5in; text-indent: -0.25in;">
B.<span style="font: 7pt 'Times New Roman';">
</span><u>Procedural Changes in VAT </u></div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l5 level1 lfo4; tab-stops: list .5in; text-indent: -0.25in;">
1.<span style="font: 7pt 'Times New Roman';">
</span><span class="GramE">New system of online verification of
Input Tax Credit (ITC) (VAT paid by selling dealer).</span> </div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l5 level1 lfo4; tab-stops: list .5in; text-indent: -0.25in;">
2.<span style="font: 7pt 'Times New Roman';">
</span>Refunds to <span class="GramE">be issued</span> through
ECS.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l5 level1 lfo4; tab-stops: list .5in; text-indent: -0.25in;">
3.<span style="font: 7pt 'Times New Roman';">
</span>‘C’ forms and other declarations to <span class="GramE">be
issued</span> in electronic formats.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l5 level1 lfo4; tab-stops: list .5in; text-indent: -0.25in;">
4.<span style="font: 7pt 'Times New Roman';">
</span>Establishment of basic GST Network – Effective date <span class="GramE">– 1<sup>st</sup></span> August, 2012.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l5 level1 lfo4; tab-stops: list .5in; text-indent: -0.25in;">
5.<span style="font: 7pt 'Times New Roman';">
</span>In case of delayed return, dealer shall not be able to
upload return without payment of mandatory “fee” of Rs. 5,000/-. This will
replace the earlier penalty.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l5 level1 lfo4; tab-stops: list .5in; text-indent: -0.25in;">
6.<span style="font: 7pt 'Times New Roman';">
</span>Penalty for failure to register with VAT authorities within
prescribed time.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l5 level1 lfo4; tab-stops: list .5in; text-indent: -0.25in;">
7.<span style="font: 7pt 'Times New Roman';">
</span>Retrospective changes in provisions for e-returns,
e-payments.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l0 level1 lfo5; tab-stops: list .5in; text-indent: -0.25in;">
3.<span style="font: 7pt 'Times New Roman';">
</span><u>Amendments in MVAT Act </u></div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l9 level1 lfo6; tab-stops: list .5in; text-indent: -0.25in;">
1.<span style="font: 7pt 'Times New Roman';">
</span>Technical amendments made which include introduction of
limitation period of 3 years for applying for prospective DDQs (Determination of
Disputed Questions).</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l9 level1 lfo6; tab-stops: list .5in; text-indent: -0.25in;">
2.<span style="font: 7pt 'Times New Roman';">
</span>Increase in time limit for preservation of books of account
from 3 years to 8 years. The reason for this change (which <span class="GramE">is
proposed to be made</span> retrospectively) is to bring section 86 in line with
the limitation period prescribed under MVAT for assessment.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l9 level1 lfo6; tab-stops: list .5in; text-indent: -0.25in;">
3.<span style="font: 7pt 'Times New Roman';">
</span><span class="GramE">Changes in definition of developer, new
definitions for motor spirit, petroleum products and co-developer.</span></div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l8 level1 lfo7; tab-stops: list .5in; text-indent: -0.25in;">
4.<span style="font: 7pt 'Times New Roman';">
</span><u>Reduction in set-off on Branch Transfers outside State
(Rate of Retention increased).</u></div>
<div class="western" style="margin: 5pt 0in 10.1pt 0.5in;">
Reduction in the rate of
set-off availed on purchased goods, which <span class="GramE">are subsequently
transferred</span> outside the state. Effective from <span class="GramE">1<sup>st</sup></span> April, 2012, the set-off is to be reduced by
4% instead of 2%. </div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l1 level1 lfo8; tab-stops: list .5in; text-indent: -0.25in;">
5.<span style="font: 7pt 'Times New Roman';">
</span><u>Changes in Appellate <span class="GramE">Procedure <span style="text-decoration: none;">:</span></span></u> (a) If
an appellant fails to attend appellate hearings or seeks adjournment on 3
occasions, the appellant will have to pay 15% of the disputed amount or Rs. 15
<span class="SpellE">crore</span> whichever is less for the stay on demand to
continue. (b) Monetary Limits on appeals to reduce unnecessary burden on system.
These will be similar to provisions of 268-A of the Income Tax Act.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l1 level1 lfo8; tab-stops: list .5in; text-indent: -0.25in;">
6.<span style="font: 7pt 'Times New Roman';">
</span><u>Tax exemption on Sugarcane purchase given to sugar
factories.</u></div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l1 level1 lfo8; tab-stops: list .5in; text-indent: -0.25in;">
7.<span style="font: 7pt 'Times New Roman';">
</span><span class="GramE"><u>Profession Tax </u>- Restriction of
tax liability of a person applying for new registration under Profession Tax Act
to 8 years prior to application or start of proceedings.</span> </div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l1 level1 lfo8; tab-stops: list .5in; text-indent: -0.25in;">
8.<span style="font: 7pt 'Times New Roman';">
</span><u>Changes in Tax Rates</u></div>
<div style="margin: 5pt 0in 10.1pt 0.75in;">
<b><u>Rates of <span class="GramE">MVAT
<span style="text-decoration: none;">:</span></span></u></b></div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>i.<span style="font: 7pt 'Times New Roman';">
</span><span class="SpellE">Beedis</span> to be taxed @ 12.5% to
bring the rate close to that of tobacco and its <span class="GramE">products
which</span> are taxed @ 20%. <span class="GramE">Clarification of entry to make
it more inclusive.</span></div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>ii.<span style="font: 7pt 'Times New Roman';">
</span>LPG for domestic use <span class="GramE">was exempted</span>
from 2008 onwards. This concession has continued. It is to <span class="GramE">be
taxed</span> @ 5%.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>iii.<span style="font: 7pt 'Times New Roman';">
</span>Plaster of Paris – rate of tax increased from 5% to
12.5%</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>iv.<span style="font: 7pt 'Times New Roman';">
</span>Raisins and currants <span class="GramE">were previously
exempted</span> from tax <span class="SpellE">upto</span> 31-5-2012. Different
rates for cashew (12.5%) and other dry fruits (5%) resulted in inconvenience to
dealers. Therefore, single rate of 5% <span class="GramE">is proposed</span> for
all dry fruits.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>v.<span style="font: 7pt 'Times New Roman';">
</span>Textile processing <span class="GramE">is exempted</span>
from tax. Sales of furnishing cloth to attract 5% VAT at the last P.O.S. (Point
of Sale).</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>vi.<span style="font: 7pt 'Times New Roman';">
</span>Aviation Turbine Fuel (ATF<span class="GramE">)-</span>
general VAT rate is 25%. However, in areas other than Mumbai and <span class="SpellE">Pune</span>, there is a concessional rate of 4%. This is to <span class="GramE">be increased</span> to 5% <span class="SpellE">w.e.f</span>.
1-4-2012.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>vii.<span style="font: 7pt 'Times New Roman';">
</span>Lower MVAT rate of 5% on tea to be continued up to <span class="GramE">31<sup>st</sup></span> March, 2013.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
viii.<span style="font: 7pt 'Times New Roman';"> </span>Rate of
MVAT on cotton yarn to <span class="GramE">be reduced</span> from 5% to 2%.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>ix.<span style="font: 7pt 'Times New Roman';">
</span>Tax rate on writing boards and pads, examination pads,
black, white or green boards, drawing boards, drawing charcoal, erasers, foot
rulers, stapler, glitter pen, sketch pen, pencil leads, oil pastels and
envelopes is reduced from 12.5 % to 5 %.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>x.<span style="font: 7pt 'Times New Roman';">
</span>To promote poultry industry in the State, the tax rate on
machineries and equipments used in this industry <span class="GramE">is proposed
to be reduced</span> to 5 %.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>xi.<span style="font: 7pt 'Times New Roman';">
</span>Tax Exemption for oil and oilcakes manufactured and sold by
Tel <span class="SpellE">Ghani</span> (<span class="SpellE">upto</span> a turnover
of rupees 20 <span class="SpellE">lakhs</span> in a year) and certified by <span class="SpellE">Khadi</span> and Village Industries Board. </div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>xii.<span style="font: 7pt 'Times New Roman';">
</span>Vegetarian <span class="GramE">food sold in sealed containers
or in frozen state are</span> taxed in many cases @ 12.5%. This rate is to <span class="GramE">be reduced</span> to 5%. </div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
xiii.<span style="font: 7pt 'Times New Roman';"> </span>Reduction
in tax rate from 12.5% to 5 % on adult diapers, sanitary napkins, raincoats,
safety helmets, ribbons, bow and <span class="SpellE">kajal</span>, articles made
from bamboo and rock salt. </div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l6 level1 lfo9; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
xiv.<span style="font: 7pt 'Times New Roman';"> </span><span class="GramE">Changes in tax rates of CNG Vehicles.</span></div>
<div class="western" style="margin: 5pt 0in 10.1pt 0.75in;">
<span class="GramE"><b><u>Others</u> :</b></span></div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l3 level1 lfo10; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>i.<span style="font: 7pt 'Times New Roman';">
</span><b>Tax Collection at Source (TCS)</b> <span class="GramE">has
been made</span> applicable to auctions of sand. TCS <span class="GramE">has also
been made</span> applicable to other notified goods. This <span class="GramE">has
been done</span> to enable notified agencies to collect some portion of tax at
the time of delivery of goods to buyer.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l3 level1 lfo10; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>ii.<span style="font: 7pt 'Times New Roman';">
</span><b>Purchase <span class="GramE">Tax :</span></b> This is to
be imposed on purchases of cotton and oil seeds from URDs (unregistered
persons). The rate of purchase tax will be the same as that on sales and setoff
<span class="GramE">will also</span> be available, when selling these goods. MVAT
Act is to <span class="GramE">be amended</span> to enable levying of purchase
tax.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l3 level1 lfo10; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>iii.<span style="font: 7pt 'Times New Roman';">
</span><b>Entry <span class="GramE">Tax :</span> </b>Entry Tax of
12.5% is to be levied on Natural Gas entering Maharashtra State. This entry tax
will be fully available for set-off, if the natural gas <span class="GramE">is
resold</span>. In any other case, there will be retention of 3% (viz., setoff
will be available in excess of 3%).</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l3 level1 lfo10; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>iv.<span style="font: 7pt 'Times New Roman';">
</span><b>TDS in case of Works <span class="GramE">Contracts
:</span> </b>In case of Works Contracts undertaken by unregistered dealers, TDS
has to be deducted @ 4%. Since, the general rate of composition on construction
work is 5%, TDS rate is also to <span class="GramE">be increased</span> to 5%.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l3 level1 lfo10; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>v.<span style="font: 7pt 'Times New Roman';">
</span><b>Stamp Duty on <span class="SpellE">Conveyancing</span> of
Immovable <span class="GramE">Property :</span></b> 3 simple rates to replace old
slab system. (a) 3% for areas under Gram <span class="SpellE">Panchayats</span>
(b) 4% for areas falling under Municipal Councils and Influential Areas and (c)
5% for urban areas including Municipal Corporations.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l3 level1 lfo10; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>vi.<span style="font: 7pt 'Times New Roman';">
</span><b>Increase in Motor Vehicle Tax (MVT<span class="GramE">)
:</span> </b>Increase in MVT by 2% on <span class="SpellE">petrol</span> cars and
jeeps.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l3 level1 lfo10; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>vii.<span style="font: 7pt 'Times New Roman';">
</span><b>Exemption on essential goods : </b>MVAT Exemption on
essential goods such as rice, heat, pulses and their flour, turmeric, <span class="SpellE">chillies</span>, tamarind, <span class="SpellE">gur</span>, coconut,
coriander seeds, fenugreek, parsley (<span class="SpellE">suva</span>), <span class="SpellE">papad</span>, wet dates, <span class="SpellE">solapuri</span> <span class="SpellE">chaddars</span> and towels is to be continued <span class="SpellE">upto</span> 31<sup>st</sup> March, 2013.</div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l3 level1 lfo10; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
viii.<span style="font: 7pt 'Times New Roman';">
</span><b>Exemption from MVAT to battery operated
vehicles.</b></div>
<div style="margin: 5pt 0in 10.1pt 0.5in; mso-list: l3 level1 lfo10; mso-text-indent-alt: -.25in; tab-stops: list .5in; text-indent: -0.5in;">
<span style="font: 7pt 'Times New Roman';">
</span>ix.<span style="font: 7pt 'Times New Roman';">
</span><span class="GramE"><b>Amnesty Scheme for Unpaid Electricity
Duty</b>.</span> <span class="GramE">Waiver of up to 50% of interest payable by
distribution companies.</span></div>
<div type="FOOTER">
<div align="right" style="margin: 33.1pt 0in 10.1pt; text-align: right;">
3</div>
<div style="margin-bottom: 12pt;">
<br /></div>
</div>
</div>
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-63665377858679607412012-03-16T20:23:00.002+05:302012-03-16T20:23:31.478+05:30Budget 2012 - Highlights (Tax Proposals)<div dir="ltr" style="text-align: left;" trbidi="on">
<!--[if gte mso 9]><xml>
<w:WordDocument>
<w:View>Normal</w:View>
<w:Zoom>0</w:Zoom>
<w:TrackMoves/>
<w:TrackFormatting/>
<w:PunctuationKerning/>
<w:ValidateAgainstSchemas/>
<w:SaveIfXMLInvalid>false</w:SaveIfXMLInvalid>
<w:IgnoreMixedContent>false</w:IgnoreMixedContent>
<w:AlwaysShowPlaceholderText>false</w:AlwaysShowPlaceholderText>
<w:DoNotPromoteQF/>
<w:LidThemeOther>EN-US</w:LidThemeOther>
<w:LidThemeAsian>X-NONE</w:LidThemeAsian>
<w:LidThemeComplexScript>X-NONE</w:LidThemeComplexScript>
<w:Compatibility>
<w:BreakWrappedTables/>
<w:SnapToGridInCell/>
<w:WrapTextWithPunct/>
<w:UseAsianBreakRules/>
<w:DontGrowAutofit/>
<w:SplitPgBreakAndParaMark/>
<w:DontVertAlignCellWithSp/>
<w:DontBreakConstrainedForcedTables/>
<w:DontVertAlignInTxbx/>
<w:Word11KerningPairs/>
<w:CachedColBalance/>
</w:Compatibility>
<w:BrowserLevel>MicrosoftInternetExplorer4</w:BrowserLevel>
<m:mathPr>
<m:mathFont m:val="Cambria Math"/>
<m:brkBin m:val="before"/>
<m:brkBinSub m:val="--"/>
<m:smallFrac m:val="off"/>
<m:dispDef/>
<m:lMargin m:val="0"/>
<m:rMargin m:val="0"/>
<m:defJc m:val="centerGroup"/>
<m:wrapIndent m:val="1440"/>
<m:intLim m:val="subSup"/>
<m:naryLim m:val="undOvr"/>
</m:mathPr></w:WordDocument>
</xml><![endif]--><!--[if gte mso 9]><xml>
<w:LatentStyles DefLockedState="false" DefUnhideWhenUsed="true"
DefSemiHidden="true" DefQFormat="false" DefPriority="99"
LatentStyleCount="267">
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Normal"/>
<w:LsdException Locked="false" Priority="9" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="heading 1"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 2"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 3"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 4"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 5"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 6"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 7"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 8"/>
<w:LsdException Locked="false" Priority="9" QFormat="true" Name="heading 9"/>
<w:LsdException Locked="false" Priority="39" Name="toc 1"/>
<w:LsdException Locked="false" Priority="39" Name="toc 2"/>
<w:LsdException Locked="false" Priority="39" Name="toc 3"/>
<w:LsdException Locked="false" Priority="39" Name="toc 4"/>
<w:LsdException Locked="false" Priority="39" Name="toc 5"/>
<w:LsdException Locked="false" Priority="39" Name="toc 6"/>
<w:LsdException Locked="false" Priority="39" Name="toc 7"/>
<w:LsdException Locked="false" Priority="39" Name="toc 8"/>
<w:LsdException Locked="false" Priority="39" Name="toc 9"/>
<w:LsdException Locked="false" Priority="0" Name="header"/>
<w:LsdException Locked="false" Priority="0" Name="footer"/>
<w:LsdException Locked="false" Priority="35" QFormat="true" Name="caption"/>
<w:LsdException Locked="false" Priority="10" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Title"/>
<w:LsdException Locked="false" Priority="1" Name="Default Paragraph Font"/>
<w:LsdException Locked="false" Priority="11" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtitle"/>
<w:LsdException Locked="false" Priority="0" Name="Hyperlink"/>
<w:LsdException Locked="false" Priority="22" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Strong"/>
<w:LsdException Locked="false" Priority="20" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Emphasis"/>
<w:LsdException Locked="false" Priority="59" SemiHidden="false"
UnhideWhenUsed="false" Name="Table Grid"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Placeholder Text"/>
<w:LsdException Locked="false" Priority="1" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="No Spacing"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 1"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 1"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 1"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 1"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 1"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 1"/>
<w:LsdException Locked="false" UnhideWhenUsed="false" Name="Revision"/>
<w:LsdException Locked="false" Priority="0" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="List Paragraph"/>
<w:LsdException Locked="false" Priority="29" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Quote"/>
<w:LsdException Locked="false" Priority="30" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Quote"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 1"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 1"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 1"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 1"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 1"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 1"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 1"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 1"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 2"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 2"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 2"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 2"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 2"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 2"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 2"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 2"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 2"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 2"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 2"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 2"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 2"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 2"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 3"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 3"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 3"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 3"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 3"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 3"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 3"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 3"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 3"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 3"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 3"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 3"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 3"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 3"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 4"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 4"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 4"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 4"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 4"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 4"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 4"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 4"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 4"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 4"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 4"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 4"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 4"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 4"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 5"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 5"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 5"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 5"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 5"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 5"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 5"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 5"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 5"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 5"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 5"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 5"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 5"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 5"/>
<w:LsdException Locked="false" Priority="60" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Shading Accent 6"/>
<w:LsdException Locked="false" Priority="61" SemiHidden="false"
UnhideWhenUsed="false" Name="Light List Accent 6"/>
<w:LsdException Locked="false" Priority="62" SemiHidden="false"
UnhideWhenUsed="false" Name="Light Grid Accent 6"/>
<w:LsdException Locked="false" Priority="63" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 1 Accent 6"/>
<w:LsdException Locked="false" Priority="64" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Shading 2 Accent 6"/>
<w:LsdException Locked="false" Priority="65" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 1 Accent 6"/>
<w:LsdException Locked="false" Priority="66" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium List 2 Accent 6"/>
<w:LsdException Locked="false" Priority="67" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 1 Accent 6"/>
<w:LsdException Locked="false" Priority="68" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 2 Accent 6"/>
<w:LsdException Locked="false" Priority="69" SemiHidden="false"
UnhideWhenUsed="false" Name="Medium Grid 3 Accent 6"/>
<w:LsdException Locked="false" Priority="70" SemiHidden="false"
UnhideWhenUsed="false" Name="Dark List Accent 6"/>
<w:LsdException Locked="false" Priority="71" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Shading Accent 6"/>
<w:LsdException Locked="false" Priority="72" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful List Accent 6"/>
<w:LsdException Locked="false" Priority="73" SemiHidden="false"
UnhideWhenUsed="false" Name="Colorful Grid Accent 6"/>
<w:LsdException Locked="false" Priority="19" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Emphasis"/>
<w:LsdException Locked="false" Priority="21" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Emphasis"/>
<w:LsdException Locked="false" Priority="31" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Subtle Reference"/>
<w:LsdException Locked="false" Priority="32" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Intense Reference"/>
<w:LsdException Locked="false" Priority="33" SemiHidden="false"
UnhideWhenUsed="false" QFormat="true" Name="Book Title"/>
<w:LsdException Locked="false" Priority="37" Name="Bibliography"/>
<w:LsdException Locked="false" Priority="39" QFormat="true" Name="TOC Heading"/>
</w:LatentStyles>
</xml><![endif]--><!--[if gte mso 10]>
<style>
/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:"Times New Roman","serif";}
</style>
<![endif]-->
<br />
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b><span style="font-family: "Times-Bold","serif"; font-size: 16.0pt; mso-bidi-font-family: Times-Bold;">INDIAN
FINANCE BILL 2012</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b><span style="color: black; font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold;">TAX
PROPOSALS</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b><span style="color: #231f20; font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold;">DIRECT
TAXES PROPOSALS</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l7 level1 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">1)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">DTC rates</span></u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;"> proposed to be introduced for personal income tax.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l7 level1 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">2)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Changes in tax rates, deductions, withholding tax :-</span></u></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l7 level2 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">a.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Basic Exemption limit raised</span></u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;"> for the general category of individual taxpayers.
The limit is proposed to be enhanced from </span><span style="color: #231f20; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">1,80,000 to </span><span style="color: #231f20; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">2,00,000
giving a tax relief of </span><span style="color: #231f20; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">2,000.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l7 level2 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">b.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Upper
limit of 20 per cent tax slab to be raised from </span><span style="color: #231f20; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">8 lakh to </span><span style="color: #231f20; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">10 lakh.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l7 level2 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">c.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">In
line with earlier notification exempting specified salary earners from filing
their returns, a deduction of upto </span><span style="color: #231f20; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">10,000 for interest from savings bank accounts is now to be
allowed to individual tax payers.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l7 level2 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">d.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Deduction
of upto </span><span style="color: #231f20; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">5,000
for preventive health check up to be allowed to individuals.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l7 level2 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">e.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">No
advance tax to be paid by senior citizens who do not have any business income.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l7 level2 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">f.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Rate
of withholding tax (TDS on foreign payments) on interest payment on ECBs to be
reduced from 20 per cent to 5 per cent for 3 years for certain sectors. </span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l7 level2 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">g.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Repatriation
of dividends from foreign subsidiaries of Indian companies at lower tax rate of
15 per cent. Extended upto 31.3.2013. </span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l7 level1 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">3)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Business Deductions </span></u></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo6; tab-stops: list 0in; text-align: justify; text-autospace: ideograph-numeric; text-indent: 0in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">a.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Investment
linked deduction of capital expenditure for certain businesses to be allowed at
an enhanced rate of 150 per cent. New sectors are to be added for the purposes
of investment linked deduction.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo6; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: 0in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">b.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Proposal
to extend weighted deduction of 200 per cent for R&D expenditure in an
in-house facility for a further period of 5 years upto March 31, 2017.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo6; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: 0in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">c.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Providing
weighted deduction of 150 per cent on expenditure incurred for agri-extension
services.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo6; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: 0in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">d.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Weighted
deduction at 150 per cent of expenditure incurred on skill development in
manufacturing sector. </span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo6; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: 0in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">e.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Extending
sunset date for setting up power sector undertakings by one year for claiming
100 per cent deduction of profits for 10 years.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l7 level1 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">4)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Restriction on Venture Capital Funds to invest only in 9
specified sectors proposed to be removed</span></u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">.<span style="mso-spacerun: yes;"> </span>So far the government
had restricted investment to information technology, software, nanotechnology,
biotechnology, basic drugs and seed development and research, biofuels, hotels,
dairy and poultry projects in India<span style="mso-spacerun: yes;">
</span>However, this restriction has been removed. Apart from a small negative
list which includes agriculture and atomic energy, Venture Capital Funds will
be allowed to invest in all other sectors.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l7 level1 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">5)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Tax Audit Limits to be increased :-</span></u></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Raising of Turnover limit for compulsory tax audit of accounts
and presumptive taxation of small and medium enterprises from </span><span style="color: #231f20; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">60 lakhs to </span><span style="color: #231f20; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">1 crore. </span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l7 level1 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">6)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Ensuring Flow of Capital investment to SMEs.</span></u></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Exemption from Capital Gains tax on sale of residential
property, if sale consideration</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">is used for subscription in equity of a manufacturing small and
medium enterprise for purchase of new plant and machinery. This is mainly to
give a boost to setting up of small and medium enterprises.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l7 level1 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">7)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Reduction in securities transaction tax</span></u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;"> by 20 per cent on cash
delivery transactions.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l7 level1 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">8)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Proposal to extend the levy of Alternate Minimum Tax to all
business entities (all persons</span></u><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;"> other than companies) claiming profit linked deductions. This
will mean a higher rate of tax for businesses.</span></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l7 level1 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">9)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Introduction
of General Anti Avoidance Rule to counter aggressive tax avoidance scheme.
Measures proposed to deter the generation and use of unaccounted money. </span></div>
<div class="MsoNormal" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .25in;">
<i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Estimated Effect of the Direct
Tax Proposals – Net revenue loss of </span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">4,500 crore.</span></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b><span style="color: black; font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold;">INDIRECT
TAXES</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b><span style="color: black; font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold;">Service
Tax</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">1)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Sevice tax confronts challenges of its share being
below its potential, complexity in tax law, and need to bring it closer to
Central Excise Law for eventual transition to GST.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">2)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Introduction of negative list of services. Proposal
to tax all services except those in the negative list comprising of 17 heads.
For a list of the proposed negative services, please refer to Annexure 1.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">3)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Exemption from service tax for some sectors.</span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">4)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Rationalisation of Service Tax law. Harmonising
Service Tax and Central Excise provisions. The main aim is to introduce a
single unified code for Service Tax and Central Excise.</span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">5)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Simplified Registration Form and Common Return
(single page) for Service Tax and Central Excise.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">6)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Utilization of input tax credit permitted in number
of services to reduce cascading</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">of taxes.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">7)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Revision Application Authority and Settlement
Commission being introduced in Service Tax for dispute resolution.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">8)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Place of Supply Rules for determining the location
of service to be put in public</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;"><span style="mso-tab-count: 1;"> </span>domain
for stakeholders’ comments.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .25in;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">9)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">New scheme announced for simplification of refunds.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l0 level1 lfo1; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">10)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Rules pertaining to point of taxation are being
rationalised. To maintain a healthy fiscal situation proposal to raise service
tax rate from 10 per cent to 12 per cent, with corresponding changes in rates
for individual services.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<i style="mso-bidi-font-style: normal;"><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Estimated Effect of Service Tax Proposals -
Additional revenue of </span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span></i><i style="mso-bidi-font-style: normal;"><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">18,660
crore.</span></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b style="mso-bidi-font-weight: normal;"><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Excise and Customs</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l12 level1 lfo13; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">1)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Given the imperative for fiscal correction, standard
rate of excise duty to be raised from 10 per cent to 12 per cent, merit rate
from 5 per cent to 6 per cent and the lower merit rate from 1 per cent to 2 per
cent with few exemptions.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l12 level1 lfo13; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">2)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Excise duty on large cars also proposed to be
enhanced.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l12 level1 lfo13; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">3)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">No change proposed in the peak rate of customs duty
of 10 per cent on non-agricultural goods.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l12 level1 lfo13; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">4)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">To stimulate investment relief proposals for
specific sectors - especially those under stress.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-list: l9 level1 lfo10; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<i><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic; mso-fareast-font-family: Times-Italic;"><span style="mso-list: Ignore;">a)<span style="font: 7.0pt "Times New Roman";">
</span></span></span></i><i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Agriculture and Related Sectors</span></u></i></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l8 level2 lfo9; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Basic customs duty reduced for
certain agricultural equipment and their parts;</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l8 level2 lfo9; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Full exemption from basic
customs duty for import of equipment for expansion or setting up of fertiliser
projects upto March 31, 2015.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-list: l9 level1 lfo10; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<i><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic; mso-fareast-font-family: Times-Italic;"><span style="mso-list: Ignore;">b)<span style="font: 7.0pt "Times New Roman";">
</span></span></span></i><i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Infrastructure</span></u></i></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l1 level2 lfo2; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Proposal for full exemption
from basic customs duty and a concessional CVD of 1 per cent to steam coal till
31st March, 2014.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l1 level2 lfo2; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Full exemption from basic duty
provided to certain fuels for power generation.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-list: l9 level1 lfo10; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<i><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic; mso-fareast-font-family: Times-Italic;"><span style="mso-list: Ignore;">c)<span style="font: 7.0pt "Times New Roman";">
</span></span></span></i><i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Mining</span></u></i></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l11 level1 lfo12; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Full exemption from basic
customs duty to coal mining project imports.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l11 level1 lfo12; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Basic custom duty proposed to
be reduced for machinery and instruments needed for surveying and prospecting
for minerals.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-list: l9 level1 lfo10; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<i><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic; mso-fareast-font-family: Times-Italic;"><span style="mso-list: Ignore;">d)<span style="font: 7.0pt "Times New Roman";">
</span></span></span></i><i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Railways</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Basic custom duty proposed to be reduced for
equipments required for installation of train protection and warning system and
upgradation of track structure for high speed trains.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-list: l9 level1 lfo10; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<i><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic; mso-fareast-font-family: Times-Italic;"><span style="mso-list: Ignore;">e)<span style="font: 7.0pt "Times New Roman";">
</span></span></span></i><i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Roads</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Full exemption from import duty on certain
categories of specified equipment needed for road construction, tunnel boring
machines and parts of their assembly.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-list: l9 level1 lfo10; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<i><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic; mso-fareast-font-family: Times-Italic;"><span style="mso-list: Ignore;">f)<span style="font: 7.0pt "Times New Roman";">
</span></span></span></i><i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Civil Aviation</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Tax concessions proposed for parts of aircraft and
testing equipment for third party maintenance, repair and overhaul of civilian
aircraft.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-list: l9 level1 lfo10; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<i><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic; mso-fareast-font-family: Times-Italic;"><span style="mso-list: Ignore;">g)<span style="font: 7.0pt "Times New Roman";">
</span></span></span></i><i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Manufacturing</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Relief proposed to be extended to sectors such as
steel, textiles, branded readymade garments, low-cost medical devices,
labour-intensive sectors producing items of mass consumption and matches
produced by semi-mechanised units.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-list: l9 level1 lfo10; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<i><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic; mso-fareast-font-family: Times-Italic;"><span style="mso-list: Ignore;">h)<span style="font: 7.0pt "Times New Roman";">
</span></span></span></i><i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Health and Nutrition</span></u></i></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l10 level2 lfo11; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Proposal to extend concessional
basic customs duty of 5 per cent with full exemption from excise duty/CVD to 6
specified life saving drugs/vaccines.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l10 level2 lfo11; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Basic customs duty and excise
duty reduced on Soya products to address protein deficiency among women and
children.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l10 level2 lfo11; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Basic customs duty and excise
duty reduced on Iodine.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l10 level2 lfo11; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Basic customs duty reduced on
Probiotics.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .75in; margin-right: 0in; margin-top: 0in; mso-list: l9 level1 lfo10; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<i><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic; mso-fareast-font-family: Times-Italic;"><span style="mso-list: Ignore;">i)<span style="font: 7.0pt "Times New Roman";">
</span></span></span></i><i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Environment</span></u></i></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l3 level2 lfo4; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Concessions and exemptions
proposed for encouraging the consumption of energy saving devices, plant and
equipment needed for solar thermal projects.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l3 level2 lfo4; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;"><span style="mso-list: Ignore;">·<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Concession from basic customs
duty and special CVD being extended to certain items imported for manufacture
for hybrid or electric vehicle and battery packs for such vehicles.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l12 level1 lfo13; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">5)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Proposal to increase basic customs duty on imports
of gold and other precious metals.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l12 level1 lfo13; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold; mso-bidi-font-weight: bold; mso-fareast-font-family: Times-Bold;"><span style="mso-list: Ignore;">6)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><u><span style="color: #231f20; font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold; mso-bidi-font-weight: bold;">Additional resource mobilization</span></u></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l7 level2 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">a.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Proposals to increase excise
duty on ‘demerit’ goods such as certain cigarettes, hand-rolled bidis, pan masala,
gutkha, chewing tobacco, unmanufactured tobacco and zarda scented tobacco.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l7 level2 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">b.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Cess on crude petroleum oil
produced in India revised to </span><span style="color: black; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">4,500 per metric tonne.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l7 level2 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">c.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Basic customs duty proposed to
be enhanced for certain categories of completely built units of large
cars/MUVs/SUVs.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l7 level1 lfo8; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold; mso-bidi-font-weight: bold; mso-fareast-font-family: Times-Bold;"><span style="mso-list: Ignore;">10)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><u><span style="color: #231f20; font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold; mso-bidi-font-weight: bold;">Rationalization measures</span></u></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l2 level2 lfo3; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">a.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Excise duty rationalised for
packaged cement, whether manufactured by mincemeat plants or others.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l2 level2 lfo3; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">b.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Levy of excise duty of 1 per
cent on branded precious metal jewellery to be extended to include unbranded jewellery.
Operations simplified and measures taken to minimise impact on small artisans
and goldsmiths.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l2 level2 lfo3; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">c.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Branded Silver jewellery
exempted from excise duty.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l2 level2 lfo3; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">d.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Chassis for building of
commercial vehicle bodies to be charged excise duty at an </span><i><span style="color: #231f20; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">ad valorem </span></i><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">rate
instead of mixed rate.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l2 level2 lfo3; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">e.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Import of foreign-going vessels
to be exempted from CVD of 5 per cent retrospectively.</span></div>
<div class="MsoListParagraph">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 1.0in; margin-right: 0in; margin-top: 0in; mso-list: l2 level2 lfo3; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">f.<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Duty-free allowances increased
for eligible passengers and for children of upto 10 years.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<i style="mso-bidi-font-style: normal;"><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Estimated Effect of<span style="mso-spacerun: yes;">
</span>Customs and Central excise Proposals - Net revenue gain of </span></i><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span></i><i style="mso-bidi-font-style: normal;"><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">27,280 crore.</span></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric; text-indent: .25in;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Net gain
of </span></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: black; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span></i></b><b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">41,440 crore in the Budget due to various taxation
proposals.</span></i></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b><span style="font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold;">TAX REFORMS</span></b></div>
<div class="MsoListParagraph" style="line-height: 150%; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l6 level1 lfo7; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">1)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: #231f20; font-family: "Times-Roman","serif"; font-size: 12.0pt; line-height: 150%; mso-bidi-font-family: Times-Roman;">Progress
towards DTC and GST.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l6 level1 lfo7; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">2)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">DTC Bill to be enacted at the earliest after expeditious
examination of the report of the Parliamentary Standing Committee.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l6 level1 lfo7; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">3)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Drafting of model legislation for the Centre and State GST in
concert with Statesis under progress.</span></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l6 level1 lfo7; tab-stops: list 0in; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">4)<span style="font: 7.0pt "Times New Roman";"> </span></span></span><span style="font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">GST network to be set up as a National Information Utility and to
become operational by August 2012.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b><span style="color: black; font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold;">DISINVESTMENT
POLICY</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoListParagraph" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; mso-list: l4 level1 lfo5; tab-stops: list 0in; text-align: justify; text-autospace: ideograph-numeric; text-indent: -.25in;">
<span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman; mso-fareast-font-family: Times-Roman;"><span style="mso-list: Ignore;">1)<span style="font: 7.0pt "Times New Roman";">
</span></span></span><span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Government has further evolved
its approach to divestment of Central Public Sector Enterprises by allowing
them a level playing field vis-à-vis the private sector in respect of practices
like buy backs and listing at stock exchanges. For 2012-13, </span><span style="color: black; font-family: Rupee; mso-bidi-font-family: Rupee;">`</span><span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">30,000 crore to be raised through disinvestment. At
least 51 per cent ownership and management control to remain with Government.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b><span style="color: black; font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold;">OTHER
PROPOSALS HAVING AN IMPACT ON THE ECONOMY :-</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b style="mso-bidi-font-weight: normal;"><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic; mso-bidi-font-style: italic;">INVESTMENT</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Foreign Direct Investment</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Efforts
to arrive at a broadbased consensus in consultation with the State Governments
in respect of decision to allow FDI in multi-brand retail upto 51 per cent.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Advance Pricing Agreement</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Provision
regarding implementation of Advance Pricing Agreement to be introduced in
Finance Bill, 2012.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Financial Sector</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Rajiv
Gandhi Equity Saving Scheme to allow for income tax deduction of 50 per cent to
new retail investors, who invest upto </span><span style="color: black; font-family: Rupee; font-size: 12.0pt; mso-bidi-font-family: Rupee;">`</span><span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">50,000 directly in equities and whose annual income is
below </span><span style="color: black; font-family: Rupee; font-size: 12.0pt; mso-bidi-font-family: Rupee;">`</span><span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">10 lakh to be introduced. The
scheme will have a lock-in period of 3 years.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Capital Market</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Various
steps proposed to be taken for deepening the reforms in the Capital markets,
including simplifying process of IPOs, allowing QFIs to access Indian Bond
Market etc.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Legislative Reforms</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Official
amendment to “The Pension Fund Regulatory and Development Authority Bill,
2011”, “The Banking Laws (Amendment) Bill, 2011” and “The Insurance Law
(Amendment) Bill, 2008” to be moved in this session.Various Bills proposed to
be moved in the Budget session of the Parliament to take forward the process of
financial sector legislative reforms.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<b><span style="color: black; font-family: "Times-Bold","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Bold;">GOVERNANCE</span></b></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">UID-Aadhaar</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Enrolment
of 20 crore persons completed under UID mission. Adequate funds to be allocated
to complete enrolment of another 40 crore persons.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Black Money</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Proposal
to lay a White Paper on Black Money in current session of Parliament.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<i><u><span style="color: black; font-family: "Times-Italic","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Italic;">Public Procurement Legislation</span></u></i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="color: black; font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;">Bill
regarding Public Procurement Legislation to be introduced in the Budget Session
of the Parliament.</span></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<span style="font-family: "Times-Roman","serif"; font-size: 12.0pt; mso-bidi-font-family: Times-Roman;"><span style="mso-tab-count: 4;"> </span>*****************************</span></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;"><u>ANNEXURE 1</u></i></b></div>
<div align="center" class="MsoNormal" style="text-align: center;">
<b style="mso-bidi-font-weight: normal;"><i style="mso-bidi-font-style: normal;">(Refer to Service Tax Proposal –
item no. 2)</i></b></div>
<div class="MsoNormal">
<u>Negative List as per concept paper introduced for public
discussion</u></div>
<div class="MsoNormal">
1. <span style="mso-tab-count: 1;"> </span>Notified
services provided by:</div>
<div class="MsoNormal" style="text-indent: .5in;">
a. Government* and Judiciary;</div>
<div class="MsoNormal" style="text-indent: .5in;">
b. RBI; and</div>
<div class="MsoNormal" style="text-indent: .5in;">
c. government regulatory bodies</div>
<div class="MsoNormal" style="margin-left: .5in; text-indent: -.5in;">
2.<span style="mso-tab-count: 1;"> </span> Services provided by individuals to
Government in relation to their representation on any council, commission<span style="mso-spacerun: yes;"> </span>or similar body set up by the Government.</div>
<div class="MsoNormal" style="margin-left: .5in; text-indent: -.5in;">
3. <span style="mso-tab-count: 1;"> </span>Service by UN, international bodies,
diplomatic missions under diplomatic and consular<span style="mso-spacerun: yes;"> </span>arrangements as per laid down conditions
(details to be specified). Services provided to such entities to remain exempt
as at present.</div>
<div class="MsoNormal" style="margin-left: .5in; text-indent: -.5in;">
4. <span style="mso-tab-count: 1;"> </span>Services provided by organizations
registered as non-profit entities in matters relating to public and social
welfare activities-excluding education and health (covered
separately)-including charitable fund-raising events, sponsorships to
charitable events and voluntary donations to charity.</div>
<div class="MsoNormal">
5.<span style="mso-tab-count: 1;"> </span> Funeral,
burial, crematorium and mortuary services.</div>
<div class="MsoNormal" style="line-height: normal; margin-left: .5in; text-indent: -.5in;">
6.<span style="mso-tab-count: 1;"> </span>Agriculture & animal
husbandry<span style="mso-spacerun: yes;"> </span>: Services directly used for
growing, cultivation, harvesting of the agricultural produce, horticulture,
animal husbandry, forestry, dairy, poultry farming and pisciculture (including
renting of vacant land exclusively or predominantly for any such purpose)
Certain support services in relation to agriculture and allied activities may
be separately exempted.</div>
<div class="MsoNormal">
7.<span style="mso-tab-count: 1;"> </span>Sale,
purchase or acquisition of securities and debts on principal-to-principal basis
Acquisition of<span style="mso-tab-count: 1;"> </span>shares in
lieu of services will be liable to tax.</div>
<div class="MsoNormal">
8.<span style="mso-tab-count: 1;"> </span> Interest</div>
<div class="MsoNormal">
9.<span style="mso-tab-count: 1;"> </span>Dividend
on investments</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
10 <span style="mso-tab-count: 1;"> </span>Inter-bank
sale and purchase of foreign currency</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
11 <span style="mso-tab-count: 1;"> </span>Transport
of passengers by:</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
a) public transport
buses on a point-to-point basis (except tourist buses) and stagecarriage basis;</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
b) public transport
in ship or vessel of less than 15 net tonnage on a point-to-point basis;</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
c) by metered taxis
or three-wheeler auto rickshaw plying within the precincts of a city</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
12 <span style="mso-tab-count: 1;"> </span>Transport
of goods to a destination outside India by any means of transport</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
13<span style="mso-tab-count: 1;"> </span>Supply
of goods carriage to a person engaged in the business of transportation of
goods</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
14 <span style="mso-tab-count: 1;"> </span>Construction,
works-contract, repair, alteration, renovation or restoration of:</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
a)
roads, airports, railways, transport, terminals, bridges, tunnels, dams,
canals, irrigation and<span style="mso-spacerun: yes;"> </span>flood control
waterworks including watershed development and water-bodies, water treatment
plants and water supply pipelines;</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
b)
buildings owned by Government, other than meant predominantly for industrial or
commercial use, including government hospitals and educational institutions</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
c) residential
building comprising of a single dwelling unit;</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
d)
homeless shelter, orphanage, old-age home, rehabilitation & de-addiction
centre, child day-care home or place of worship</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric; text-indent: -.5in;">
15 <span style="mso-tab-count: 1;"> </span>Renting
of personal dwelling for residential use of a person below a threshold (to be
finalized after debate) and when used otherwise as a hotel, inn, guest house,
club or campsite or similar accommodation </div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric; text-indent: -.5in;">
16 <span style="mso-tab-count: 1;"> </span>Pre-school,
school and recognized education** and vocational training recognized by NCVT
except as capitation fee, donations or similar charges in relation to
admission.</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric; text-indent: -.5in;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric;">
17.<span style="mso-tab-count: 1;"> </span>Option
1: Services provided by a clinical establishment with a turnover below Rs 4
crore in the</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
previous year</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-autospace: ideograph-numeric; text-indent: .5in;">
Option 2: Hospital,
medical care, diagnostic, paramedical services except in relation to</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: .5in; margin-right: 0in; margin-top: 0in; text-autospace: ideograph-numeric;">
preventive
health check-up within the precincts of a clinical establishment,cosmetic or
plastic surgery.</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: ideograph-numeric;">
Note : Apart from
the above, there are other services specified such as copyright services of
original literary works, services provided by independent journalist to PTI and
UNI, services provided by sportspersons as players, coach referees, religious
services, trade union services, etc. There is no clarity with reference to
these services, which are in addition to the 17 services as per the draft paper.</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: ideograph-numeric;">
<span style="mso-tab-count: 5;"> </span>……………………………..</div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; text-align: justify; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 68.25pt; margin-right: 103.5pt; margin-top: 0in; text-align: justify; text-autospace: ideograph-numeric;">
<i>Dear Readers,</i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 68.25pt; margin-right: 103.5pt; margin-top: 0in; text-align: justify; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 68.25pt; margin-right: 103.5pt; margin-top: 0in; text-align: justify; text-autospace: ideograph-numeric;">
<i>To know more about the finance and
tax issues in India and to keep track of Budget updates, please log on to </i><a href="http://www.taxupdater.blogspot.in/">www.taxupdater.blogspot.in</a><i>.</i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 68.25pt; margin-right: 103.5pt; margin-top: 0in; text-align: justify; text-autospace: ideograph-numeric;">
<br /></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 68.25pt; margin-right: 103.5pt; margin-top: 0in; text-align: justify; text-autospace: ideograph-numeric;">
<i>Regards,</i></div>
<div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 68.25pt; margin-right: 103.5pt; margin-top: 0in; text-align: justify; text-autospace: ideograph-numeric;">
<i>Taxationexperz team.</i></div>
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-27519868085469564662011-12-30T13:25:00.003+05:302011-12-30T13:39:21.093+05:30Life Insurance Corporation - No. 1 in claim settlement<div dir="ltr" style="text-align: left;" trbidi="on">
<br />
<br />
<a href="http://economictimes.indiatimes.com/articleshow/11298009.cms?prtpage=1">http://economictimes.indiatimes.com/articleshow/11298009.cms?prtpage=1</a></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-36989848804089413512011-12-29T18:55:00.002+05:302011-12-29T19:00:13.828+05:30Penalty for late filing of MVAT Audit Report was held to be discretionary qua levy as well as qua quantum of levy.<div dir="ltr" style="text-align: left;" trbidi="on">
Penalty for late filing of MVAT Audit Report was held to be discretionary qua levy as well as qua quantum of levy by the Mumbai High Court. As per the facts of the case, the Sales Tax Tribunal reduced the quantum of penalty for delay in filing MVAT Audit Report for FY 2006-2007 from Rs. 83,013/- to Rs. 25,000/-. This was upheld by the Mumbai High Court in its recent judgement (September, 2011).<br />
<br />
The Mumbai High Court judgement is appended for your information.<br />
<br />
<a href="https://docs.google.com/document/d/1sG_cdgfp9btDbtYRRrniFaUyKAYAEY1oFRi7V-XEpJE/edit" target="_blank">Addl Commr Sales Tax V Ankit International - Mum HC</a><br />
<br />
<br /></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-37043796750239688462011-12-23T17:56:00.003+05:302011-12-23T18:00:35.313+05:30Procedure for cancelling TAN(Tax Deduction No.)<div dir="ltr" style="text-align: left;" trbidi="on">
<table align="center" cellpadding="0" cellspacing="0" class="tr-caption-container" style="margin-left: auto; margin-right: auto; text-align: center;"><tbody>
<tr><td style="text-align: center;"><a href="http://3.bp.blogspot.com/-VIFJNpHmfB4/TvRzQGQssgI/AAAAAAAAAAg/Zl7cxlpFgog/s1600/Cancellation+of+TAN.jpg" imageanchor="1" style="margin-left: auto; margin-right: auto;"><img border="0" src="http://3.bp.blogspot.com/-VIFJNpHmfB4/TvRzQGQssgI/AAAAAAAAAAg/Zl7cxlpFgog/s1600/Cancellation+of+TAN.jpg" /></a></td></tr>
<tr><td class="tr-caption" style="text-align: center;">Add caption</td></tr>
</tbody></table>
<br /></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-39501792825966660842011-12-23T17:45:00.001+05:302011-12-23T17:45:44.458+05:30<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="background-color: white; border-bottom: medium none; border-left: medium none; border-right: medium none; border-top: medium none; color: black; overflow: hidden; text-align: left; text-decoration: none;">
<div align="center" style="text-align: center;">
<strong>F. No. 137/120/2011 –
Service Tax</strong></div>
<div align="center" style="text-align: center;">
<strong>New Delhi dated the 13th
December 2011</strong></div>
<div align="center" style="text-align: center;">
<strong>ORDER NO. 2 /2011 – Service
Tax</strong></div>
<div style="text-align: justify;">
In exercise of the powers conferred by Rule 4(1A)
of <span class="IL_AD" id="IL_AD7">the Service</span> Tax Rules 1994, Central Board
of Excise and Customs hereby specifies the following documents that are required
to be submitted by the person who has made an application for registration under
Rule 4(1) of the Rules ibid:</div>
(a) Copy of Permanent <span class="IL_AD" id="IL_AD6">Account Number</span>
(PAN)<br />
(b) <span class="IL_AD" id="IL_AD3">Proof of Residence</span><br />
(c) <span class="IL_AD" id="IL_AD4">Constitution</span> of the <span class="IL_AD" id="IL_AD10">Applicant</span>.<br />
(d) <span class="IL_AD" id="IL_AD1">Power of Attorney</span> in respect of
authorised person (s).<span id="more-45807"></span><br />
2. It is further stated that the above documents must be submitted to the
concerned authority within a period of 15 days from <span class="IL_AD" id="IL_AD2">the date</span> of filing of the application for registration. <span class="IL_AD" id="IL_AD9">Failure</span> to do so would lead to rejection of the
registration application.<br />
3. It is also clarified that the time limit of seven days from date of
receipt of application or intimation under Rule 4(5A), within which the
registration is to be granted by the Superintendent of Central Excise or Service
Tax, as referred to in Rule 4(5) shall be reckoned from the date the application
for registration is <span class="IL_AD" id="IL_AD5">complete</span> in all
respects.<br />
<div align="right" style="text-align: justify;">
<strong>(Deepankar
Aron)</strong></div>
<div align="right" style="text-align: justify;">
<strong>Director (Service
Tax)</strong></div>
<div align="right" style="text-align: justify;">
<strong>CBEC, New
Delhi</strong></div>
<a href="http://taxguru.in/service-tax/cbec-specifies-documents-required-service-tax-registration.html#ixzz1hMKEEJr2" style="color: #003399;"></a></div>
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-78323394481557560822011-11-12T20:26:00.000+05:302011-11-12T20:26:54.539+05:30Maharashtra VAT - Form 501 for 2009-2010 submission date extended to 31st December, 2011<div dir="ltr" style="text-align: left;" trbidi="on">As per Trade Circular no. 15T of 2011, the date for submission of MVAT refund application in Form 501 for Financial year 2009-2010 has been extended to 31st December, 2011. No further extension is likely to be granted.<br />
<br />
<br />
<a href="http://www.mahavat.gov.in/Mahavat/MyFold/KNOWLEDGE%20CENTER/TRADE%20CIRCULARS/DateWise/KNOW_TRADEC_DW_MVAT/KNOW_TRADEC_DW_MVAT_11_02_11_3_21_9PM.pdf" target="_blank">Trade Circular 15T of 2011</a><br />
<br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-83438254857734707262011-11-12T19:55:00.001+05:302011-11-12T20:01:53.526+05:30Form 49AA - PAN application for Foreign Citizens- Individuals and Unincorporated/Corporate Entities registered abroad.<div dir="ltr" style="text-align: left;" trbidi="on"><b>New PAN Application Form for Foreign Citizens and entities registered abroad</b>.<br />
<br />
<a href="http://law.incometaxindia.gov.in/DITTaxmann/IncomeTaxRules/pdf/itr62form49aa.pdf" target="_blank">New Form 49AA in pdf format</a><br />
<br />
<br />
New Form 49AA has been notified vide Notification no. 56/2011 dated 17-10-2011 for :-<br />
<br />
1) Foreign Citizens - Individuals<br />
<br />
2) LLPs, Companiesregistered outside India.<br />
<br />
3) Firms, AOPs - Trusts/Others formed or registered outside India.<br />
<br />
This change has been made to enable foreign entities to claim refund of tax deducted in India on their payments. Rule 114 (3) of the Income Tax Rules has been specifically amended to allow PAN applications from persons receiving payments which are liable for tax deduction.<br />
<br />
<a href="http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITRU&schT=rul&csId=87b4bf42-138c-4568-80f8-2bf1265812a7&rNo=114&sch=&title=Taxmann%20-%20Direct%20Tax%20Laws" target="_blank">Link to Annexure Details alongwith Form 49AA</a><br />
<br />
The details of annexures to be provided alongwith Form 49AA and Form 49A has been substituted. Please refer to link hereinabove.<br />
<br />
<br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-18571108451916336422011-10-21T11:11:00.000+05:302011-10-21T11:11:10.361+05:30Extension of Due Date of Service Tax Returns upto 26-12-2011<div dir="ltr" style="text-align: left;" trbidi="on">F. No. 137/99/2011 – Service Tax, New Delhi dated the 20th October 2011<br />
<br />
<br />
ORDER NO. 1 /2011 – Service Tax<br />
<br />
In exercise of the powers conferred by Rule 7(4) of the Service Tax Rules 1994 read with notification No. 48/2011-Service Tax dated 19th October 2011, Central Board of Excise and Customs hereby extends the date of submission of half yearly return for the period April 2011 to September 2011 from 25th October 2011 to 26th December 2011. <br />
<br />
This is being done in view of the fact that the e-filing of service tax returns for all class of service tax assesses has been made mandatory for the first time vide notification no. 43/2011- Service Tax dated 25.8.11, as such leaving less time for the trade to adjust to the requirement of e-filing.<br />
<br />
Director (Service Tax)<br />
<br />
<br />
<br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-80198530508536284632011-07-16T01:44:00.001+05:302011-07-16T02:02:30.314+05:30DSCs compulsorily for Individuals/HUF/Partnership Firms liable for tax audit<strong>DSCs required for E-filing of Returns by Individuals/HUF/Partnership Firms.</strong><br />
<br />
<strong>Digital Signatures are now required for uploading of E-returns by Individuals/HUF/Partnership Firms liable for tax audit u/s. 44AB. As per notification dated 37/2011 dated 1st July, 2011, the Income Tax Rules have been amended to provide that Digital signatures are mandatory for E-returns for the above categories of assessees (which are filed in Form nos. 4 or 5).</strong><br />
<div class="separator" style="clear: both; text-align: center;"><a href="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUCtXrt89F24CTh-HP0-2n-RiUsxlWLNx591t6gFGFHPPtDBcLzsAUakmbQskDgJYq1ctx_YRiFYc7HNQVQfTic-7bh7i_00F-xhPT5hpuK3lnADc_gqDr7b5EV3fVwYwKs8_ayrKDCjw2/s1600/Notification372011dated01072011.JPG" imageanchor="1" style="margin-left: 1em; margin-right: 1em;"><img border="0" m$="true" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjUCtXrt89F24CTh-HP0-2n-RiUsxlWLNx591t6gFGFHPPtDBcLzsAUakmbQskDgJYq1ctx_YRiFYc7HNQVQfTic-7bh7i_00F-xhPT5hpuK3lnADc_gqDr7b5EV3fVwYwKs8_ayrKDCjw2/s1600/Notification372011dated01072011.JPG" /></a></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-17209441232621322282011-07-15T03:05:00.002+05:302011-07-15T03:05:45.906+05:30Dear Friends,<br />
<br />
<br />
<br />
<br />
I have been asked often about the exemption given to salaried employees which was spelt out by our Hon’ble FM last month. To clarify your doubts, the details of exemption from filing Income Tax Returns are given below :-<br />
<br />
<br />
<br />
1) Only those Individuals having total income (after allowable deductions) up to Rs.5,00,000 for FY 2010-11 are eligible.<br />
<br />
<br />
<br />
2) The income should be Salary income from a single employer and may include interest income of Rs. 10,000/- from deposits in a saving bank account. However, the total (after allowing for deductions) should not exceed Rs. 5,00,000/-. Tax must be deducted (TDS) and paid and reflected in the Form 16 (Salary Certificate) of the assessee.<br />
<br />
<br />
<br />
3) In the case of Bank Interest, such individuals must report their Permanent Account Number (PAN) and the entire income from bank interest to their employer so that it is mentioned in Form 16 (Salary Certificate) and pay entire tax by way of TDS on Salary.<br />
<br />
<br />
<br />
Though well meaning, there are certain fine points which have been overlooked by many. If you take a closer look, the exemption/relief is not available in the following cases :-<br />
<br />
<br />
<br />
a) In case of a job change during the financial year, an individual is still liable to file his returns even though he may have disclosed his earlier income details to his new employers.<br />
<br />
<br />
<br />
b) Secondly, employees having income from house property, capital gains, income from other sources (other than from Bank Interest), etc. are not eligible and must file their returns.<br />
<br />
<br />
<br />
c) Employees rarely give details of bank interest to their employers and strictly speaking, will not be eligible to claim the exemption since the bank interest details will not be included in their Form 16s. In such cases, they will have to file returns. <br />
<br />
<br />
<br />
d) Also, in many companies, proof for availing tax deduction is collected by January end and therefore, payments eligible for tax deduction (e.g. Life insurance premia paid in February and March) are not included in Form 16. Certain other deductions viz., under section 80G (Gifts and donations) are claimed at the time of filing of the return. Therefore, such persons will have to compulsorily file their returns to claim refunds.<br />
<br />
<br />
<br />
e) The exercise of computing income will have to be carried out simply to determine whether their taxable income (after deductions) is within the limit !<br />
<br />
<br />
<br />
f) All non filers will have to maintain records to respond in case of issue of notices by the income tax department in the future. This means records will to be maintained.<br />
<br />
<br />
<br />
g) Of course the above scheme is not applicable in cases, where scrutiny assessments, etc are under progress and notices have been issued.<br />
<br />
<br />
<br />
So, again it appears that what the government has offered with one hand, it has taken away with the other. One can always point out that it would have been better had the government addressed the above issues before implementing such a half baked scheme. However, we must be satisfied with the “largesse” shown by the finance ministry and hope that this is a precursor to a more efficient tax regime.Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-19356712507756034052011-04-08T11:33:00.000+05:302011-04-08T11:33:45.023+05:30<div dir="ltr" style="text-align: left;" trbidi="on"></div><a href="http://C:\Documents and Settings\Administrator\Desktop\S.html"></a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-28080261490681390622011-04-08T11:17:00.001+05:302011-04-08T11:17:09.435+05:30RBI ICAI Multi-Purpose Empanelment Form (Including Bank Branch Auditors Empanelment) 2011-12<div dir="ltr" style="text-align: left;" trbidi="on">One of my associates, a Chartered Accountant by profession required some information on empanelment procedure with RBI. I thought that this info may come in handy for all practising Chartered Accountants.<br />
<br />
<strong>Introduction to Multi-Purpose Empanelment Form (Including Bank Branch Auditors Empanelment) and Links to website.</strong><br />
<br />
<br />
Every year, Professional Development Committee of the Institute hosts the Multipurpose Empanelment Form (MEF) on www.meficai.org. This year also, MEF 2010-11 was hosted on May 1, 2010. As per the decision of the Council of the Institute taken at its 235th meeting, financial documents were also called from 10% applicants randomly selected by the computer.<br />
<br />
As many enquiries were being received from members on various issues, the PDC felt it expedient to share some of the developments as well as relevant background details concerning the preparation of the Multipurpose Panel.<br />
<br />
New Developments:<br />
<br />
Recently, the Council at its 299th Meeting held in October, 2010 has decided to call for financial documents from all the applicants of MEF for the year 2011-12.<br />
<br />
Status of the applicant:<br />
<br />
For preparation of the said panel, the data of the applicant appearing in the Institutes record as on 1st January of the respective year is considered. For e.g. for the preparation of panel for the year 2011-12, data as per ICAIs record as on 1st January, 2011 will be considered.<br />
<br />
The Council of the Institute at its 242nd meeting held in April, 2004 had decided that there shall be a cut off date for condonation of cases for empanelment purposes as on 1st January and the cases received beyond the cut off date will not be considered for condonation. In view of this, it has been decided interalia as under:<br />
<br />
“For the purposes of Empanelment in the C&AG Panel prepared by office of C&AG and Bank Branch Auditors Panel prepared by ICAI (for which Constitution Certificates as on 1st January are issued every year); no condonation of delay in submission of Form no. 18 beyond 31st January preceding the financial year under audit (e.g. 31st January, 2011 for empanelment for the year 2011-12) will be done by the Institute.”<br />
<br />
In case the intimation of change in the constitution is given to the regional office after 31st January, the effect of the said change would not be given for preparation of PSU auditors Panel and Bank Branch Auditors panel; eg: if a firm has added 1 more partner before 1st January and the firm wants to apply for MEF, it should ensure that it submits all requisite documents to the Regional Office before 31st January of the year and changes are effected in Institutes database.<br />
<br />
Please note that MEF strictly picks data from Institutes database maintained by Regional Offices. PDC has no role in modifying the data of the applicant.<br />
<br />
Decision taken by the Council at its 241st meeting regarding part-time practitioners for Bank Panel 2005-06<br />
<br />
The Council at its 241st meeting decided that w.e.f. 1.4.2005, any member in part time practice (namely, holding Certificate of Practice and also engaging himself in any other business and/or occupation) will not be entitled to perform attest function.<br />
<br />
In view of the above decision, members may note the following for the purpose of Bank Branch Auditors Empanelment for 2005-06 and onwards:-<br />
<br />
Any firm which has Chartered Accountants whose main occupation is not practice, as partners, may apply for empanelment; however, no weightage will be given to the part-time partner(s).<br />
<br />
Exclusivity of the proprietor or partners of the applicant firm<br />
<br />
As per the eligibility norms provided by RBI for preparation of the said panel, the Chartered Accountants associated with the applicant firm should be “exclusively” associated with the firm. Please note that in case of members who are partners/proprietors in two or more firms, their credit would not be given to any of the firms. Furthermore, partner/proprietor of the firm also having their own sole practice would not be considered as exclusively associated with the firm. <br />
<br />
There seems to be a misunderstanding among the members that credit of common partners is given to applicant firm if only one of the firms in which he is a partner/proprietor applies for the said panel. This is not the case. It does not matter, whether one firm applies or both, in no case credit of common partner would be given to any of the firms. <br />
<br />
PN: If as on 1st January of the relative year, a member is appearing as associated with more than 1 firm, credit of such partner is not given in any condition to any of the firms in preparation of Bank Branch Auditors Panel.<br />
<br />
Members may please note the application of the new empanelment norms as given in the examples below: <br />
<br />
1. A & Co. is a partnership firm of 2 partners B & C. B has a proprietorship firm of his own, B & Co. A & Co. and B & Co. both apply B & Co. will be rejected and A & Co. will be considered as a firm with only one exclusively associated partner and therefore treated at par with a proprietary firm.<br />
<br />
2. Only A & Co. applies A & Co. will still be treated as proprietorship firm with one exclusively associated partner.<br />
<br />
3. ABC is a partnership firm of 3 partners A, B & C, and all 3 have proprietorship firms A & Co, B & Co. and C & Co. All applications (ABC, A & Co., B & Co., C & Co. or any combination thereof, or of the individual firms) will be rejected.<br />
<br />
Implication of the abovesaid norm is that members (both partners and C.A. employees) who are not exclusively associated with the applicant firm will not be given any weightage in Bank Branch Auditors Panel e.g. if a partner P/C.A. employee E of firm F is also a partner/proprietor in any other firm and/or practicing in his individual name, or is employed elsewhere; then firm F will not get any credit for the partner P/C.A. employee E.<br />
<br />
Further, in case, none of the partners are exclusively associated with the firm, (i.e. all partners are either practicing in their individual name/have a sole proprietary concern or are associated as partner in another firm/employed elsewhere also); then such firm will not be eligible for Bank Branch Auditors Panel altogether.<br />
<br />
Furthermore, a member who is also a partner in any firm besides practicing in his individual name or sole proprietary concern, will not be entitled to apply in his individual name/sole proprietary concern also, e.g. the partner P of the firm F in the example given hereinbefore will not be eligible to apply in his individual name/sole proprietary concern and the firm F in which he is a partner will also not get any credit for Partner P.<br />
<br />
A member having more than 1 proprietorship is advised to keep only one of the proprietorships before 1st Jan, 2011 to maintain his exclusivity.<br />
<br />
Unique Code Number (UCN) – Significance and due care<br />
<br />
UCN is a very important data which facilitates RBI in proper and correct recording of past Bank Audit experience of applicants. The Members/Firms MUST quote their proper unique code number (if allotted, AT ANY TIME in the past) in the MEF to facilitate this. The MEF may show UCN field as “Not allotted” though it may have been allotted in past as the applicant might not have applied in the last years empanelment. However, members must take utmost care to mention their UCN in Memorandum of Changes.<br />
<br />
Professional Staff:<br />
<br />
The term “professional staff” as used in clause (ii) of para 1 of Annexure I to RBI’s letter No. DBS.ARS.No. 650/08.91.008/2003-04 dated 1st March, 2004 containing the revised empanelment norms issued by the Reserve Bank of India (applicable from the year 2005-06 and hosted on the Institute’s website) “also includes other audit staff having knowledge of book-keeping and accountancy and engaged in outdoor audit besides articled clerks and audit clerks.”<br />
<br />
Memorandum of Changes<br />
<br />
In case applicant does not agree with the (static) data as appearing from the ICAI database in the online application form, the changes (as per the applicant) can be informed through MoC (Memorandum of Change).<br />
<br />
Relaxation for – Chartered Accountants from North Eastern Region.<br />
<br />
RBI has relaxed the eligibility norm in respect of the number of years of professional standing required for individual members/proprietary firms from the North-Eastern Region (viz. the states of Assam, Meghalaya, Arunachal Pradesh, Manipur, Mizoram, Nagaland, Sikkim and Tripura) by reducing the period from 3 years to 1 year from the year 2008-09 and onwards. <br />
<br />
MEF Complaint Centre: <br />
<br />
MEF was introduced to have a comprehensive data of Chartered Accountants/firms interested in empanelment of various authorities which call for panel from Institute. Every effort is made to facilitate Members to file MEF. One of such important step was introduction of Complaint Centre.<br />
<br />
The MEF complaint centre was first time introduced in 2008. This complaint centre is dedicated to resolve the problems pertaining to MEF. It is a systematic and advanced version of grievance resolution. In case, an applicant faces any problem in accessing, operating or submission of MEF, complaint may be lodged by accessing complaint-centre link which is made available on www.meficai.org. Applicants can lodge their complaint by using either MEF No./ M. No/ FRN. On successful lodging of complaint, complaint number is informed through e-mail. All complaints lodged by the applicant are looked into by the Committee. The applicants can view the status of their complaints by using MEF No./Complaint No./MRN/FRN.<br />
<br />
After submission of online MEF, the applicant is required to send declaration duly signed by all the continuing Partners/Proprietor. Members shall ensure that the declaration reaches the designated address as mentioned in the advisory of the form within stipulated time. The declaration is to be signed by all the partners/proprietor of the applicant as on 1st January of the relative year continuing with the applicant till the date of signing of declaration. In case any partner resigns or retires from the firm after 1st January, the weightage of such members is not given to the applicant.<br />
<br />
Advisory of MEF is basically a guide to help members in filling MEF. In short, it gives “dos and donts” while filling MEF.<br />
<br />
As the MEF Panel is used for submission of Panel to various authorities as per their respective requirements, the MEF may also include special sections for empanelment of CA firms to capture data as may be required by them. For e.g. next year there will be a separate section asking for additional data required by Commissioner of Cooperative Societies, Maharashtra State, for audit of Urban Cooperative Banks, Credit Cooperatives and other societies. <br />
<br />
All members and firms are therefore requested to fill Multipurpose Empanelment Form to make it more broad based as the said panel may be used to provide list of Chartered Accountants/Firms to various authorities which request for the same as per their requirement.<br />
<br />
In case of Merger or Demerger <br />
<br />
In case of any merger after 31st January, the firm which continues to be in existence will only be eligible to apply for MEF (with its constitution as on 1st January) likewise, in case of demerger after 31st January, the main firm (i.e. the merged entity) only will be eligible to apply however, only the partners since 1st January and continuing with the firm would be considered for determining eligibility of the firm in the panel.<br />
<br />
<u><strong>Important Links</strong></u><br />
<br />
<em>Note : Please note that the login will only be active from the notified period (normally starting from 1st May onwards upto Mid June of every year).</em><br />
Multipurpose Empanelment Form for the year 2011-12 will be available as an on line application instead of offline application Members will be able to fill up the application form directly in the site it self and Upload it.<br />
<br />
<br />
Members can view the Application and can edit the Application in different stages.<br />
<br />
However after submission of the application form members will not be able to edit the application, They would be able to view the details submitted through the Application Form and take print out of declaration, acknowledgement and of the whole application form.<br />
<br />
• Copy and paste the link in your browser to fill Multipurpose Empanelment Form 2011-12<br />
<br />
<strong>http://www.meficai.org/login-step-1.jsp</strong><br />
<br />
• Copy and paste the link in your browser to View / Download the PDF version of the Advisory for Multipurpose Empanelment Form (MEF) for the Year 2010-11<br />
<br />
http://www.meficai.org/advisory.html<br />
<br />
• Copy and paste the link in your browser to View Revised Norms for Categorization of Audit Firms <br />
<br />
http://www.meficai.org/revised_norms.htm<br />
<br />
MEF PDC Complaint Center <br />
<br />
• Submit Your MEF Complaint at the following Link:- <br />
<br />
http://www.meficai.org/complaints/complaint_enrty_enter.jsp<br />
<br />
• Know Your Complaint Status through Complaint No (or) FRN/MRN Number at the below mentioned link:- <br />
<br />
http://www.meficai.org/complaints/viewcomplaintstatus.jsp<br />
<br />
_________________________________________________________ <br />
<br />
In case of any queries, contact,<br />
<br />
Professional Development Committee<br />
The Institute of Chartered Accountants of India,<br />
‘ICAI BHAWAN’,<br />
Post Box Number 7100,<br />
Indraprastha Marg,<br />
NEW DELHI – 110 002.<br />
India<br />
Telephone – Direct +91 11 30110411<br />
Telephone – Board +91 11 39893989 Extn: 411<br />
Fax: +91 (11) – 30110583<br />
Website: www.icai.org<br />
<br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-14027793322859033092011-03-06T13:34:00.000+05:302011-03-06T13:34:57.503+05:30Google Plans To Remotely Kill Rogue Apps in Wake of Android Attack<a href="http://mobilized.allthingsd.com/20110305/google-plans-to-remotely-kill-rogue-apps-in-wake-of-android-attack/">Google Plans To Remotely Kill Rogue Apps in Wake of Android Attack</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-88897716213068236592011-03-06T13:25:00.001+05:302011-03-06T13:29:16.670+05:30Quotes<div dir="ltr" style="text-align: left;" trbidi="on"><i style="background-color: #eeeeee;">"Well, I appreciate the opportunity you're giving me Mr. Cromwell as the single largest shareholder in Teldar Paper, to speak. Well, ladies and gentlemen we're not here to indulge in fantasy but in political and economic reality. America, America has become a second-rate power. Its trade deficit and its fiscal deficit are at nightmare proportions. Now, in the days of the free market when our country was a top industrial power, there was accountability to the stockholder. The Carnegies, the Mellons, the men that built this great industrial empire, made sure of it because it was their money at stake. Today, management has no stake in the company! All together, these men sitting up here own less than three percent of the company. And where does Mr. Cromwell put his million-dollar salary? Not in Teldar stock; he owns less than one percent. You own the company. That's right, you, the stockholder. And you are all being royally screwed over by these, these bureaucrats, with their luncheons, their hunting and fishing trips, their corporate jets and golden parachutes."</i><br />
<i style="background-color: #eeeeee;"><br />
</i><br />
<i style="background-color: #eeeeee;"><br />
</i><br />
<i style="background-color: #eeeeee;">"Teldar Paper, Mr. Cromwell, Teldar Paper has 33 different vice presidents each earning over 200 thousand dollars a year. Now, I have spent the last two months analyzing what all these guys do, and I still can't figure it out. One thing I do know is that our paper company lost 110 million dollars last year, and I'll bet that half of that was spent in all the paperwork going back and forth between all these vice presidents. The new law of evolution in corporate America seems to be survival of the unfittest. Well, in my book you either do it right or you get eliminated. In the last seven deals that I've been involved with, there were 2.5 million stockholders who have made a pretax profit of 12 billion dollars. Thank you. I am not a destroyer of companies. I am a liberator of them! The point is, ladies and gentleman, that greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA. Thank you very much."</i><br />
<i style="background-color: #eeeeee;"><br />
</i><br />
<i style="background-color: #eeeeee;">Gordon Gecko in "Wall Street" </i></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-66324997976244388532011-03-06T02:51:00.000+05:302011-03-06T02:51:11.608+05:30Beautiful thoughts to start your day !<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<div style="text-align: center;"><i>Sayings by the Buddha</i></div><div style="text-align: center;"><strong><br />
</strong></div><div style="text-align: center;"><strong><br />
</strong></div><div style="text-align: center;"><strong>Three things cannot be long hidden:<br />
the sun, the moon,<br />
and the truth.”</strong></div><div style="text-align: center;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; font-weight: bold; line-height: 20px;"><strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><br />
</strong></span></div><div style="text-align: center;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; font-weight: bold; line-height: 20px;"><strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><br />
</strong></span></div><div style="text-align: center;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; font-weight: bold; line-height: 20px;"><strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><br />
</strong></span></div><div style="text-align: center;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; font-weight: bold; line-height: 20px;"><strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><br />
</strong></span></div><div style="text-align: center;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', Times, serif; font-size: 16px; font-weight: bold; line-height: 20px;"><strong style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">The Four Reliances</strong></span></div><div style="text-align: center;"><span class="Apple-style-span" style="font-family: Georgia, 'Times New Roman', Times, serif; font-size: 13px; line-height: 20px;"></span></div><h3 style="color: #999999; font-size: 1.23077em; font: normal normal bold 1em/normal Georgia, 'Times New Roman', Times, serif; line-height: 1.25em; margin-bottom: 0.625em; margin-left: 0px; margin-right: 0px; margin-top: 1.875em; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: center;"><span style="color: black; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">First, rely on the spirit<br style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;" />and meaning of the teachings,<br style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;" />not on the words;</span></h3><h3 style="color: #999999; font-size: 1.23077em; font: normal normal bold 1em/normal Georgia, 'Times New Roman', Times, serif; line-height: 1.25em; margin-bottom: 0.625em; margin-left: 0px; margin-right: 0px; margin-top: 1.875em; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: center;"><span style="color: black; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Second, rely on the teachings,<br style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;" />not on the personality of the teacher;</span></h3><h3 style="color: #999999; font-size: 1.23077em; font: normal normal bold 1em/normal Georgia, 'Times New Roman', Times, serif; line-height: 1.25em; margin-bottom: 0.625em; margin-left: 0px; margin-right: 0px; margin-top: 1.875em; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: center;"><span style="color: black; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">Third, rely on real wisdom,<br style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;" />not superficial interpretation;</span></h3><h3 style="color: #999999; font-size: 1.23077em; font: normal normal bold 1em/normal Georgia, 'Times New Roman', Times, serif; line-height: 1.25em; margin-bottom: 0.625em; margin-left: 0px; margin-right: 0px; margin-top: 1.875em; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px; text-align: center;"><span style="color: black; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;">And fourth, rely on the essence<br style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;" />of your pure Wisdom Mind,<br style="margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;" />not on judgmental perceptions.</span></h3><div><span style="color: black; margin-bottom: 0px; margin-left: 0px; margin-right: 0px; margin-top: 0px; padding-bottom: 0px; padding-left: 0px; padding-right: 0px; padding-top: 0px;"><br />
</span></div><br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-73728545401931025392011-03-06T02:29:00.014+05:302011-03-06T13:38:10.492+05:30Union Budget 2011 - Service Tax Provisions<div dir="ltr" style="text-align: left;" trbidi="on"><span class="Apple-style-span" style="font-size: 32px; font-weight: bold;">Union Budget - 2011</span><br />
<h1>Service Tax</h1><h1 style="text-align: justify;"><span style="font-size: 11pt; line-height: 115%;">This year the Finance Bill for 2011 was announced with the usual hype and drama which has come to characterize the annual budgetary exercise. Reams and reams of newsprint are devoted by the newspapers reporting on this event. Every one competes on national television in giving you sound bytes on what they feel. In fact, nowadays, even a ten year old can give you an opinion on the budget rating it on “a scale from 1 to 10”. So, today this event can be compared to a magic show, where like a conjuror pulling out things from his hat, the finance minister has to “wow” the audience. However, under all the razzle dazzle,we the general public often miss out on the fine print. In this article, let us try to understand the changes in the Service Tax provisions.<o:p></o:p></span></h1><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="color: #365f91; font-family: Cambria, serif;">CHANGES IN SERVICE TAX RULES (w.e.f. 1-4-2011) :<o:p></o:p></span></b></div><div class="MsoListParagraph" style="mso-list: l10 level1 lfo4; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Service Tax to be paid under a new hybrid system – Cash or accrual whichever is earlier. Earlier, Service tax was to be paid on receipts basis. However, for the first time, there is the introduction of accrual method of calculating service tax liability. Thus, Service tax is now to be paid after determining the date when a service is provided.<o:p></o:p></span></b></div><div class="MsoNormal" style="text-indent: .5in;"><b><u><span style="color: #365f91; font-family: Cambria, serif;">POINT OF TAXATION RULES (w.e.f. 1-4-2011) :<o:p></o:p></span></u></b></div><div class="MsoNormal" style="margin-left: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">These are discussed in detail in a separate article. However, three dates have to be kept track of when determining the date when a service is provided.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpFirst" style="margin-left: .75in; mso-add-space: auto; mso-list: l6 level1 lfo6; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Date on which service is provided (or intended to be provided).<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l6 level1 lfo6; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">2)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Date of issue of invoice<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto; mso-list: l6 level1 lfo6; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">3)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Date of receipt of payment.<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">In most cases, it is the earliest of the three dates. The exceptions to the above rule as well as the treatment of continuously rendered services are separately discussed (as mentioned earlier ) in the article on “Point of Taxation Rules-Draft”.<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">CHANGES IN SERVICE TAX RULES (contd.)<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpFirst" style="mso-list: l10 level1 lfo4; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">2)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Invoices have to be issued within 14 days from provision of service instead of completion of service. Earlier, the provision stated that the invoice had to be issued within 14 days from the date of completion of service or receipt of payment, whichever was earlier. However, now the invoice has to be issued on the provision of service or completion of milestones (in case of continuous services). <o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="mso-list: l10 level1 lfo4; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">3)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><u><span style="color: #365f91; font-family: Cambria, serif;">Associated Enterprises : <o:p></o:p></span></u></b></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpMiddle"><b><span style="color: #365f91; font-family: Cambria, serif;">The due date for deemed provision of service is the earliest of the following :-<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l8 level1 lfo5; text-indent: -.5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">i)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Date on which payment has been made.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l8 level1 lfo5; text-indent: -.5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">ii)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Date on which invoice has been issued.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l8 level1 lfo5; text-indent: -.5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">iii)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Date on which debit or credit is made in books of account by the service provider (or service recipient in the case of import of service).<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpLast" style="mso-list: l10 level1 lfo4; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">4)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><u><span style="color: #365f91; font-family: Cambria, serif;">Adjustment of excess service tax under rule 6(3).<o:p></o:p></span></u></b></div><div class="MsoNormal" style="margin-left: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">There is a mechanism provided for claiming excess service tax paid on services which are not rendered, either fully or partially. This is through an adjustment in the subsequent period’s service tax liability. The condition is that the assessee should refund the value of services (which are not performed) and the service tax thereon to the client.<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">Now, there is a change in rule 6(3) to be effective from 1-4-2011. The credit can now be claimed where :- <o:p></o:p></span></b></div><div class="MsoListParagraphCxSpFirst" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l1 level1 lfo7; text-indent: -.5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">i)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">When the assessee receives the payment, the assessee should refund the value of services not rendered and the service tax amount thereon to the client.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 3.0in; mso-add-space: auto;"><b><span style="color: #365f91; font-family: Cambria, serif;">OR<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpLast" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l1 level1 lfo7; text-indent: -.5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">ii)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">When the assessee has not received any payment, but has paid the service tax amount on issue of invoice, subject to credit note for the service tax amount being issued to the client.<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: 1.0in;"><b><span style="color: #365f91; font-family: Cambria, serif;">However, even today there is no remedy (such as the one above) available in case of excess service tax paid due to :-<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpFirst" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l5 level1 lfo8; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">a)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Incorrect interpretations of law.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l5 level1 lfo8; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">b)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Incorrect Valuation<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l5 level1 lfo8; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">c)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;"> Wrong application of rate of tax<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l5 level1 lfo8; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">d)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Incorrect classification (category)<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l5 level1 lfo8; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">e)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Incorrect abatement<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.5in; mso-add-space: auto; mso-list: l5 level1 lfo8; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">f)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Clerical errors (above Rs. 2,00,000/-)<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.25in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpLast" style="mso-list: l10 level1 lfo4; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">5)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><u><span style="color: #365f91; font-family: Cambria, serif;">Adjustment of excess payment of Service tax (due to clerical errors/”simpliciter”) under rule 6(4A) and 6(4B).<o:p></o:p></span></u></b></div><div class="MsoNormal" style="margin-left: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">There is an increase in the limit from Rs. 1 lakh to 2 lakhs in rules 6(4A) and 6(4B). The assessee can claim credit in case of excess payment of service tax due to certain clerical errors. In the Finance bill 2011, this limit has been increased to Rs.2 lakhs. <o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">This limit does not apply in cases, where service tax is paid in excess on account of delay in receiving details from branch offices. One need not emphasise that the assessee must be centrally registered as well.<o:p></o:p></span></b></div><div class="MsoListParagraph" style="mso-list: l10 level1 lfo4; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">6)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Service tax to be recovered on the basis of self assessment (viz., returns filed by assessee). This is a new sub rule 6A stating that in case any amount is shown as payable by an assessee in his return, it may be recovered on self assessment basis, without issuing any Show cause notice and/or adjudicating under section 73.<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">CHANGES IN IMPORT AND EXPORT RULES (w.e.f. 1-4-2011):<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">Under the Export of Service Rules (and Import of Service Rules), there are 3 categories under which services can be classified. <o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">They are :-<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpFirst" style="mso-list: l2 level1 lfo12; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Services relating to Immoveable Property<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="mso-list: l2 level1 lfo12; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">2)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Part-performance or Services which are performed in part at a particular location.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpLast" style="mso-list: l2 level1 lfo12; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">3)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Services which are based on the location of the recipient.<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">To qualify as exports, services relating to say immoveable property, the immoveable property must be located outside theb borders of India (viz, also including the Economic territorial zone). <o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">There are some changes in categories of certain services from the performance based criterion to the recipient location criterion. This will result in these service providers being exporters of service in case the recipients are located outside India. The services are credit rating agency, market research agency, technical testing and analysis, transport of goods by aircraft, goods transport agency services, opinion poll agency, transport of goods by rail. <o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">There are some other minor changes as well where health services and rail travel agent services are now classified under the performance based criteria. <o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">Special services provided by a builder are also reclassified under the immovable property criteria, where it will be an export only if the property is outside India. <o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .25in;"><br />
</div><div class="MsoNormal" style="margin-left: .25in;"><br />
</div><div class="MsoNormal" style="margin-left: .25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">OTHER CHANGES (w.e.f. 1-4-2011) :<o:p></o:p></span></b></div><div class="MsoListParagraph" style="mso-list: l7 level1 lfo10; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Separate provisions for valuation in case of money changing services have been introduced. A formula has been prescribed in cases, where RBI rates are not available. There is also a change in the rate of tax (viz. 0.1% instead of 0.25%) where the option of % age of gross value is chosen. This will be separately discussed.<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .5in; tab-stops: .5in; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">2i) <u>Exemption/Reliefs/Clarifications for SEZ Units :<o:p></o:p></u></span></b></div><div class="MsoNormal" style="margin-left: .5in; tab-stops: .5in; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;"> A specific exemption is given to Units of SEZ where certain specified services (approved by approval committee of the SEZ) are “wholly consumed” within the SEZ. Service tax will not be chargeable on these services. However, the burden of proof to prove that these services are “wholly consumed” in the SEZ, is on the service provider. A suitably worded declaration or undertaking from the SEZ Unit would be sufficient proof. <o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: 40.5pt; text-indent: -13.5pt;"><b><span style="color: #365f91; font-family: Cambria, serif;">ii)In case of specified services which are not wholly consumed, service tax would be chargeable. However, a refund would be available to the SEZ Unit.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpFirst"><b><u><span style="color: #365f91; font-family: Cambria, serif;">Conditions</span></u></b><b><span style="color: #365f91; font-family: Cambria, serif;"> :-<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpMiddle"><b><span style="color: #365f91; font-family: Cambria, serif;">The services are deemed to “wholly consumed” for claiming exemption when the :-<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l11 level1 lfo11; text-indent: -.5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">i)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Services are classifiable under the immoveable property category (as per Export of Service rules) viz., all services related to the property of Unit in the SEZ.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l11 level1 lfo11; text-indent: -.5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">ii)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Services come under the part-performance category, eg., repairs and maintenance, etc. which are performed in the SEZ.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 1.0in; mso-add-space: auto; mso-list: l11 level1 lfo11; text-indent: -.5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">iii)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">In case of other services (viz., falling in recipient location category), the Unit should not have any other business, etc. other than operations in the SEZ.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpLast"><b><span style="color: #365f91; font-family: Cambria, serif;">Note :-<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">Where services are shared for Domestic Tariff Area operations and for the SEZ Unit, they are not wholly consumed. Therefore, a refund would be available on a pro-rata basis. However, the time limit for claiming a refund has been increased from 6 months to 1 year.<o:p></o:p></span></b></div><div class="MsoNormal" style="margin-left: .5in; tab-stops: 251.25pt;"><b><span style="color: #365f91; font-family: Cambria, serif;">One the major changes in the Service Tax provisions are in the case of penalties.<o:p></o:p></span></b></div><div class="MsoNormal" style="text-indent: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">PENALTIES (w.e.f. date of enactment of the Finance Bill 2011) :<o:p></o:p></span></b></div><div class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l9 level1 lfo9; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><u><span style="color: #365f91; font-family: Cambria, serif;">Penalty for late filing of Returns increased - Section 70.<o:p></o:p></span></u></b></div><div class="MsoNormal" style="margin-left: .75in;"><b><span style="color: #365f91; font-family: Cambria, serif;">For late filing of Service Tax Returns penalty is now Rs. 20,000/- as against Rs. 2,000/- which existed earlier.<o:p></o:p></span></b></div><div class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l9 level1 lfo9; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">2)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><u><span style="color: #365f91; font-family: Cambria, serif;">Harsher penalty levied where fraud, willful misstatement, suppression of facts are proven - Section 73 <o:p></o:p></span></u></b></div><div class="MsoNormal" style="margin-left: .25in; text-indent: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">The old section had a 2 tier mechanism. <o:p></o:p></span></b></div><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; margin-left: 18.9pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-table-layout-alt: fixed; mso-yfti-tbllook: 1184;"><thead>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 71.7pt;" valign="top" width="96"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Details of Issue of Notice <o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 89.6pt;" valign="top" width="119"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Particulars of shortfall in Service Tax <o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 112.0pt;" valign="top" width="149"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Whether concealment of facts<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 58.0pt;" valign="top" width="77"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Conditions for payment<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 61.8pt;" valign="top" width="82"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Penalty limitation<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 71.7pt;" valign="top" width="96"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">No Show cause notice issued<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 89.6pt;" valign="top" width="119"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Shortfall in Service Tax found either by assessee or by Service Tax officer .<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 112.0pt;" valign="top" width="149"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">No fraud, collusion, willful misstatement or suppression of facts, etc.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 58.0pt;" valign="top" width="77"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Service Tax + Interest to be paid.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 61.8pt;" valign="top" width="82"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">No penalty and no issue of Show cause notice in case of payment made by assessee (and informed to him)<o:p></o:p></span></b></div></td> </tr>
</thead> <tbody>
<tr style="mso-yfti-irow: 2; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 71.7pt;" valign="top" width="96"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Show Cause notice issued.<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 89.6pt;" valign="top" width="119"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Shortfall in Service Tax.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 112.0pt;" valign="top" width="149"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Existence of Fraud, collusion, willful misstatement or suppression of facts, etc.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 58.0pt;" valign="top" width="77"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Service Tax + interest + penalty paid within 30 days from receipt of notice.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 61.8pt;" valign="top" width="82"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 9pt;">Cap of 25% on penalty and interest payable by assessee. No further penalty proceedings against the assessee if payment made and informed to officer.<o:p></o:p></span></b></div></td> </tr>
</tbody></table><div class="MsoNormal" style="margin-left: 13.5pt; text-indent: -13.5pt;"><br />
</div><div class="MsoNormal" style="margin-left: 13.5pt; text-indent: -13.5pt;"><b><span style="color: #365f91; font-family: Cambria, serif;"> With effect from 1-4-2011, there will exist a 3 tier mechanism for penalties due to short payment of service tax on account of the above reasons. <o:p></o:p></span></b></div><table border="1" cellpadding="0" cellspacing="0" class="MsoTableGrid" style="border-collapse: collapse; border: none; margin-left: 9.9pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-table-layout-alt: fixed; mso-yfti-tbllook: 1184;"><thead>
<tr style="mso-yfti-firstrow: yes; mso-yfti-irow: 0;"> <td style="border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 48.6pt;" valign="top" width="65"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Details of Issue of Notice/Adjudication order<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Particulars of shortfall in Service Tax <o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 81.0pt;" valign="top" width="108"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Whether concealment of facts<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Conditions for payment<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 45.0pt;" valign="top" width="60"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Penalty limitation<o:p></o:p></span></b></div></td> <td style="border-left: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-themecolor: text1; mso-border-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 45.0pt;" valign="top" width="60"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Waiver<o:p></o:p></span></b></div></td> </tr>
</thead> <tbody>
<tr style="mso-yfti-irow: 1;"> <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 48.6pt;" valign="top" width="65"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Adjudication Order issued.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Shortfall in Service Tax found during audit, investigation or verification.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 81.0pt;" valign="top" width="108"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Details of transaction are NOT available in “specified records” and invoices are NOT maintained for verification. <o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Deemed Existence of willful misstatement or suppression of facts, fraud, etc. <o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Penalty and Interest together equal to 1% per month for which default continues. Penalty 100% if payment is <u>NOT<i style="mso-bidi-font-style: normal;"> </i></u>made within 30 days of receipt of adjudication order(for tax audit assessees) – and 90 days (for others)<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 45.0pt;" valign="top" width="60"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Penalty – 100%.<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 45.0pt;" valign="top" width="60"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">No Waiver.<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;"> Show cause notice will be issued in case of non compliance with adjudication order. No cap on penalty.<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 2;"> <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 48.6pt;" valign="top" width="65"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Adjudication Order issued.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Shortfall in Service Tax found during audit, investigation or verification.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 81.0pt;" valign="top" width="108"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">There may or may not be willful misstatement or suppression of facts, fraud, etc. But, details are available in “specified records” and in their absence, Invoices are atleast maintained for verification.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Penalty and Interest together equal to 1% per month for which default continues. If payment is NOT<i style="mso-bidi-font-style: normal;"><u> </u></i>made within 30 days of receipt of adjudication order(for tax audit assessees) and 90 days (for others)<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 45.0pt;" valign="top" width="60"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Cap of 50% on penalty, where details of payment given to Service Tax officer.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 45.0pt;" valign="top" width="60"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Reasonable cause acceptable when specified records are maintained.<o:p></o:p></span></b></div></td> </tr>
<tr style="mso-yfti-irow: 3; mso-yfti-lastrow: yes;"> <td style="border-top: none; border: solid black 1.0pt; mso-border-alt: solid black .5pt; mso-border-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 48.6pt;" valign="top" width="65"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Adjudication Order issued.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 54.9pt;" valign="top" width="73"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Shortfall in Service Tax found during audit, investigation or verification.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 81.0pt;" valign="top" width="108"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">There may or may not be willful misstatement or suppression of facts, fraud, etc. But, details are available in “specified records” and in their absence, Invoices are atleast maintained for verification.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 76.5pt;" valign="top" width="102"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Penalty and Interest together equal to 1% per month for which default continues. If payment is made within 30 days (for tax audit assessees) and 90 days (for others)<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 45.0pt;" valign="top" width="60"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Cap of 25% on penalty, where details of payment given to Service Tax officer.<o:p></o:p></span></b></div></td> <td style="border-bottom: solid black 1.0pt; border-left: none; border-right: solid black 1.0pt; border-top: none; mso-border-alt: solid black .5pt; mso-border-bottom-themecolor: text1; mso-border-left-alt: solid black .5pt; mso-border-left-themecolor: text1; mso-border-right-themecolor: text1; mso-border-themecolor: text1; mso-border-top-alt: solid black .5pt; mso-border-top-themecolor: text1; padding: 0in 5.4pt 0in 5.4pt; width: 45.0pt;" valign="top" width="60"><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif; font-size: 8pt;">Reasonable cause acceptable when specified records are maintained.<o:p></o:p></span></b></div></td> </tr>
</tbody></table><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="color: #365f91; font-family: Cambria, serif;">Note : There seems to less scope for the issue of Show cause notices and greater emphasis on bringing the Service tax provisions in line with Income Tax act by introducing a more comprehensive mechanism to tackle concealment of income and also the introduction of an accrual based calculation of liability (as discussed in the earlier paragraphs). It appears to be a movement towards GST but causes more complexity in tax compliance.<o:p></o:p></span></b></div><div class="MsoListParagraph" style="margin-left: .75in; mso-add-space: auto; mso-list: l9 level1 lfo9; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">3)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><u><span style="color: #365f91; font-family: Cambria, serif;">Penalty for following contraventions - Rs. 10,000/- per day + 200 per day for which default continues.<o:p></o:p></span></u></b></div><div class="MsoNormal" style="text-indent: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">This penalty is applicable in case of failure to :-<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpFirst" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo1; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Register with Service Tax authorities within the due date on becoming liable.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo1; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">2)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Maintain books of account.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo1; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">3)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Make E-payment when mandatory.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo1; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">4)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Issue invoices in prescribed format – Refer rule 4A of S.T. Rules.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo1; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">5)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Account for an invoice.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo1; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">6)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Contravention of rules (where no separate penalty is stipulated).<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l3 level1 lfo1; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">7)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Failure to appear in response to a summon or furnish information/produce documents.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto; mso-list: l9 level1 lfo9; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">4)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><u><span style="color: #365f91; font-family: Cambria, serif;">Prosecution under section 89.<o:p></o:p></span></u></b></div><div class="MsoNormal" style="margin-left: .5in;"><b><span style="color: #365f91; font-family: Cambria, serif;">Prosecution provisions are introduced with stringent measures for following offenses :-<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpFirst" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">No invoice (as per the prescribed format) issued where necessary due to provision of taxable services or due to receipt of any taxable service (import of service). Here there will be difficulty in implementing in the case of import of services.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle" style="margin-left: 39.0pt; mso-add-space: auto;"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">2)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Availing/utilizing credit without actually receiving any service or goods under cenvat rules.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpMiddle" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">3)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Non supply of information to authorities or supply of false information.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpLast" style="margin-left: .75in; mso-add-space: auto; mso-list: l0 level1 lfo2; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">4)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Failure to pay Service Tax to the government beyond a period of six months from date of liability.<o:p></o:p></span></b></div><div class="MsoNormal"><b><span style="color: #365f91; font-family: Cambria, serif;"> <u>INTEREST PROVISIONS (w.e.f. 1-4-2011) :<o:p></o:p></u></span></b></div><div class="MsoNormal"><b><span style="color: #365f91; font-family: Cambria, serif;"> <u>Section 75 :<o:p></o:p></u></span></b></div><div class="MsoListParagraphCxSpFirst" style="mso-list: l4 level1 lfo3; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Increase in interest rate for late payment of tax from 13% to 18%.<o:p></o:p></span></b></div><div class="MsoListParagraphCxSpMiddle"><br />
</div><div class="MsoListParagraphCxSpLast" style="mso-list: l4 level1 lfo3; text-indent: -.25in;"><b><span style="color: #365f91; font-family: Cambria, serif;">2)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b><span style="color: #365f91; font-family: Cambria, serif;">Relief to small taxpayers - Where the turnover of an assessee does not exceed 60 lakhs, a concessional rate of 15% is applicable against the rate of 18%.<o:p></o:p></span></b></div><div class="MsoNormal"><br />
</div><div class="MsoNormal"><b><span style="color: #365f91; font-family: Cambria, serif;">Conclusion :-<o:p></o:p></span></b></div><div class="MsoNormal"><b><span style="color: #365f91; font-family: Cambria, serif;">The FM has been lauded for his budgetary proposals. But, there are a lot of far-reaching changes, all of which will result in additional revenue for the government, as a result of the increase in penalties, change in interest rates, changes relating to cenvat credit (discussed separately). So, this year, it seems the government’s attitude appears to be “Us haath de, Is haath le”. To sum it up, this budget seems to a step in the right direction as far as the FM is concerned.<o:p></o:p></span></b></div><div class="MsoNormal"><b><span style="color: #365f91; font-family: Cambria, serif;">This is the first in a series of articles on the Union Budget. While, we have not been able to cover all the changes in this article, we have attempted to give you a holistic view of the proposed changes. <o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif;">We will welcome your feedback. Please mail us at :-<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><a href="http://www.taxationexpertz@gmail.com/"><b><span style="font-family: Cambria, serif;">www.taxationexpertz@gmail.com</span></b></a><b><span style="color: #365f91; font-family: Cambria, serif;"><o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif;">Achieving excellence.<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><b><span style="color: #365f91; font-family: Cambria, serif;">PS - We will be covering the new services/increase in the coverage of services and exemptions in the next installment. We will also be bringing you more write-ups on the international finance and the Indian economy.<o:p></o:p></span></b></div><div class="MsoNormal" style="line-height: normal; margin-bottom: .0001pt; margin-bottom: 0in;"><br />
</div></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-6186928902074326212011-03-03T19:44:00.001+05:302011-03-06T02:53:00.911+05:30<div dir="ltr" style="text-align: left;" trbidi="on"><br />
<br />
<div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: .25in;"><br />
</div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: .25in;"><strong><u><span style="font-family: Georgia, serif; font-size: 10pt;">BUDGET 2011 AT A GLANCE</span></u></strong><strong><span style="font-family: Georgia, serif; font-size: 10pt;"> (FINANCE BILL 2011 HIGHLIGHTS)<o:p></o:p></span></strong></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo6; text-indent: -.25in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Georgia, serif; font-size: 10pt;">A)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: Georgia, serif; font-size: 10pt;">DIRECT TAX PROPOSALS<o:p></o:p></span></u></b></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: .25in;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: Georgia, serif; font-size: 10pt;">INCOME TAX<o:p></o:p></span></u></b></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Basic Tax exemption limit raised from Rs 1.6 lakh to Rs 1.8 lakh.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">2)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Eligible age limit for increased exemption threshold for Sr Citizens reduced from 65 to 60 years; <o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">3)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Exemption for Sr Citizens above 80 – New Category created with exemption upto Rs 5 lakh.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">4)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Taxpayers earning only Salary with entire tax liability discharged through TDS not required to file tax returns. <o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">5)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Sulabh Form to be introduced for small taxpayers.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">6)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Surcharge on domestic companies reduced from 7.5% to 5%.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">7)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">MAT rate hiked from 18% to 18.5%; SEZ developers and units in SEZs to pay MAT.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">8)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Foreign dividend brought back to India by domestic companies to be taxed at concessional rate of 15%.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">9)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">SEBI-registered Mutual Funds allowed to accept subscriptions from KYC-compliant foreign investors.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">10)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Transfer Pricing: Second proviso to Sec 92C(2) proposed to be amended to do away with variation of plus/minus 5%; to be substituted by percentage to be notified by CBDT.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">11)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">CBDT to notify 'Tool-Box' of counter-measures to deal with non-cooperative tax havens .<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l0 level1 lfo2; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">12)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Foreign dividend in hands of resident Indians to attract 15% tax.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: .25in;"><i style="mso-bidi-font-style: normal;"><span style="font-family: Georgia, serif; font-size: 10pt;">Direct taxes proposal to result in Rs 11500 Cr loss.<o:p></o:p></span></i></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo6; text-indent: -.25in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Georgia, serif; font-size: 10pt;">B)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: Georgia, serif; font-size: 10pt;">INDIRECT TAX PROPOSALS<o:p></o:p></span></u></b></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: .25in;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: Georgia, serif; font-size: 10pt;">SERVICE TAX<o:p></o:p></span></u></b></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l3 level1 lfo3; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Unambiguous definitions of input services proposed.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l3 level1 lfo3; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">2)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Service taxpayers with turnover of Rs 60 lakh exempted from Service Tax/CERA Audit. Penal provisions in Service tax streamlined.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l3 level1 lfo3; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">3)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;"> Service tax - Cenvat Credit rules to be rationalized.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l3 level1 lfo3; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">4)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Service tax refund to exporters and SEZ Units: A new scheme to be notified soon.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l3 level1 lfo3; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">5)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Service tax levied on the following new services/Coverage enhanced :- <o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 7.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo1; text-indent: 0in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Hotel accommodation above Rs 1000 per day with 50% abatement.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 7.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo1; text-indent: 0in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">AC Restaurants providing liquor.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 7.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo1; text-indent: 0in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Diagnostic labs .<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 7.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo1; text-indent: 0in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Air travel (Rate hiked by Rs 50).<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 7.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l2 level1 lfo1; text-indent: 0in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Legal services provided by individuals to business.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Georgia, serif; font-size: 10pt;"> <i style="mso-bidi-font-style: normal;">Service tax proposals to generate Rs 4000 Cr.<o:p></o:p></i></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in; text-indent: .25in;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: Georgia, serif; font-size: 10pt;">EXCISE <o:p></o:p></span></u></b></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l6 level1 lfo4; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Jumbo rolls import granted exemption.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l6 level1 lfo4; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">2)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Capital goods for mega power projects - excise duty exemption granted to domestic suppliers.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l6 level1 lfo4; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">3)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Hybrid vehicles - full exemption from BCD and CVD.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l6 level1 lfo4; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">4)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Branded garments / made-up - Excise duty levied to 10%.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l6 level1 lfo4; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">5)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Excise duty raised from 4% to 5% on items attracting 5% VAT.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l6 level1 lfo4; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">6)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Central Excise exemption withdrawn on 130 consumer items; 8% duty levied.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .25in; margin-right: 0in; margin-top: 0in;"><i style="mso-bidi-font-style: normal;"><span style="font-family: Georgia, serif; font-size: 10pt;">Excise proposals to generate Rs 7000 Cr revenue.<o:p></o:p></span></i></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: Georgia, serif; font-size: 10pt;">CUSTOMS DUTY<o:p></o:p></span></u></b></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l4 level1 lfo5; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">1)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Self-assessment system announced for Customs duty.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l4 level1 lfo5; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">2)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Customs duty on inputs for cement industry reduced.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l4 level1 lfo5; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">3)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Export duty on all sorts of export of iron ores raised to 25%.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l4 level1 lfo5; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">4)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Basic customs duty reduced on paper, chemicals, yarns etc.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l4 level1 lfo5; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">5)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Agri equipments - import duty reduced to 2.5%; Micro-irrigation equipment- Duty reduced.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l4 level1 lfo5; text-indent: -.25in;"><span style="font-family: Georgia, serif; font-size: 10pt;">6)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Customs Peak Rate - no change; Rationalisation of Customs rates proposed.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><br />
</div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l1 level1 lfo6; text-indent: -.25in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Georgia, serif; font-size: 10pt;">C)<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span></b><b style="mso-bidi-font-weight: normal;"><u><span style="font-family: Georgia, serif; font-size: 10pt;">FINANCE BILL – OTHER PROVISIONS/ANNOUNCEMENTS<o:p></o:p></span></u></b></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Direct Tax Code (DTC) Bill to be finalized soon.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Constitutional Amendment Bill for GST (Goods and Services Tax – Consolidation of VAT, Excise, Service Tax etc.) to be tabled in Parliament during the current budget session.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">LIC Corporation Bill + Insurance Amendment Bill + Banking Amendment Bill, Banking Regulation Act etc to be tabled.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Pilot GST Portal to be put online by June.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Indian Stamp Act to be amended; Govt to table Bill soon; Rs 300 Cr to be given to States to switch over to e-stamping.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">UID (Unique Identification No.) scheme - AADHAR Numbers - Rs 10 lakh numbers to be generated from Oct 1, 2010.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Govt to come out with manufacturing policy; to taget 25% growth in next 10 years; Two Committees set up and recommendations to be made available in two months.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Rs 1000 Cr more setting up E-courts and judicial reforms.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Rs 9 lakh ex-gratia payment for para military personnel on disability.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Investment linked deduction proposed for fertiliser and affordable housing.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">SEBI-registered Mutual Funds to directly access FIIs' funds + FIIs can invest upto USD 40 bn in bonds.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Rs 200 Cr allocated for cleaning up Lakes of special importance.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Black Money Problem: 1200 Cases booked for money-laundering in 2010.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Investment in fertiliser sector, Cold chain warehouses to be treated as sub-sector of infrastructure sub-sector.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><i style="mso-bidi-font-style: normal;"><span style="font-family: Georgia, serif; font-size: 10pt;">17% hike in allocation for social sectors.<o:p></o:p></span></i></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">150th Anniversary of Tagore: Rs 1 Cr Award for promoting Universal Value of Brotherhood.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Rs 500 Cr more for National Skill Development Council.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Govt accepts TAGUP Reports on unique projects.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Rs 300 Cr to promote pulses-village in rain-fed areas.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Pre-Matric scholarships introduced for SCs / STs.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Rs 21000 Cr allocated for Sarvasiksha Abhiyan.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Anganwadi workers to get Rs 3000 per month; Helpers to get Rs 1000.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Rs 300 Cr allocated for vegetable centres to be set up.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Rs 3000 Cr to be allocated to NABARD for handloom weavers (Infusion in equity).<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">To fund micro-finance, Rs 100 Cr corpus to be created with SIDBI.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><span style="font-family: Georgia, serif; font-size: 10pt;">Interest subvention for housing loans for poor extended + Rural Housing Fund to get Rs 1000 Cr more.<o:p></o:p></span></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><i style="mso-bidi-font-style: normal;"><span style="font-family: Georgia, serif; font-size: 10pt;">Direct Transfer of Subsidy on Kerosene. Fertiliser and LPG: Nilekani to submit report by June.<o:p></o:p></span></i></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><i style="mso-bidi-font-style: normal;"><span style="font-family: Georgia, serif; font-size: 10pt;">Rs 40,000 Cr revenue to be mobilised from disinvestment in 2011-12.<o:p></o:p></span></i></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><i style="mso-bidi-font-style: normal;"><span style="font-family: Georgia, serif; font-size: 10pt;">Fiscal deficit to be brought down to 4.6%.<o:p></o:p></span></i></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: .5in; margin-right: 0in; margin-top: 0in; mso-list: l5 level1 lfo7; text-indent: -.25in;"><span style="font-family: Symbol; font-size: 10pt;">·<span style="font: normal normal normal 7pt/normal 'Times New Roman';"> </span></span><i style="mso-bidi-font-style: normal;"><span style="font-family: Georgia, serif; font-size: 10pt;">Total expenditure to be Rs 12,50,000 Crore - Gross tax receipts to be Rs 9,25,000 Cr.<o:p></o:p></span></i></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><br />
</div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><b style="mso-bidi-font-weight: normal;"><span style="font-family: Georgia, serif; font-size: 10pt;"> ------------- x -------------<br style="mso-special-character: line-break;" /> <br style="mso-special-character: line-break;" /> <o:p></o:p></span></b></div><div style="line-height: 14.65pt; margin-bottom: 12.0pt; margin-left: 0in; margin-right: 0in; margin-top: 0in;"><span style="font-family: Georgia, serif; font-size: 10pt;"><br style="mso-special-character: line-break;" /> <br style="mso-special-character: line-break;" /> <o:p></o:p></span></div><div class="MsoNormal"><br />
</div><br />
</div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-73208713075511480182010-11-10T23:39:00.001+05:302010-11-10T23:39:50.660+05:30ET Article - How Indians can buy foreclosed properties abroad.<a href="http://economictimes.indiatimes.com/features/sunday-et/indulge/How-Indians-can-buy-foreclosed-properties-abroad-at-attractive-prices/articleshow/6801070.cms">http://economictimes.indiatimes.com/features/sunday-et/indulge/How-Indians-can-buy-foreclosed-properties-abroad-at-attractive-prices/articleshow/6801070.cms</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-63719918532561111182010-11-02T02:13:00.000+05:302010-11-02T02:13:02.035+05:30Important Judgement - Sale of Shrink wrapped Software - Royalty - Liable to Withholding tax<a href="http://www.moneycontrol.com/news/features/hard-times-for-software-sales_496074.html">http://www.moneycontrol.com/news/features/hard-times-for-software-sales_496074.html</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-76964874523813928912010-11-02T01:47:00.001+05:302010-11-02T01:48:35.349+05:30Bugatti to begin selling Veyron in India despite 110% import tax<a href="http://www.topspeed.com/cars/car-news/bugatti-to-begin-selling-veyron-in-india-despite-110-import-tax-ar99104.html">Bugatti to begin selling Veyron in India despite 110% import tax</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-83856008426416979012010-10-30T02:10:00.001+05:302010-10-30T02:10:43.336+05:30Cartoon for the day<div id="cotd" style="background-color: white; margin-top: -10px; padding: 5px;"><br />
<script type="text/javascript">
function cotdpop() { window.open('http://www.andertoons.com/syndication/business/','toon','menubar=no,toobar=no,resizable=yes,scrollbars=no,width=360,height=370,top=340,left=680'); }
</script><br />
<span style="font-size: 14px; font-weight: bold;">DAILY CARTOON</span><br />
<a href="javascript:cotdpop()" style="display: block; font-size: 10px; text-decoration: none;">click to enlarge</a><br />
<br />
<div style="text-align: center;"><br />
<a href="javascript:cotdpop()"><img alt="ANDERTOONS.COM BUSINESS CARTOONS" src="http://www.andertoons.com/syndication/business_t.jpg" style="border: 0;" /></a><br />
<br />
</div><br />
<br />
<div style="text-align: right;"><br />
<a href="javascript:;" onclick="window.open('http://www.andertoons.com/')" style="font-size: 10px;">Cartoon by Andertoons</a><br />
</div><br />
<div><br />
</div></div>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-86060048896276693142010-10-30T02:03:00.001+05:302010-10-30T02:12:42.784+05:30Kashmir peace is long climb, shadows Obama trip to India » peoplesworld<a href="http://peoplesworld.org/kashmir-peace-is-long-climb-shadows-obama-trip-to-india/">Kashmir peace is long climb, shadows Obama trip to India » peoplesworld</a>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-12508360669737245032010-10-28T02:35:00.003+05:302010-10-28T02:36:07.215+05:30Sayings for the wise 1<span class="Apple-style-span" style="color: #45352e; font-family: 'lucida grande', lucida, tahoma, helvetica, arial, sans-serif; font-size: 10px; line-height: 14px;">A good memory is one that can remember the day's blessings and forget the day's troubles. - Anon</span>Unknownnoreply@blogger.com0tag:blogger.com,1999:blog-7420760044056720875.post-34223295754816278382010-10-28T02:31:00.002+05:302010-11-10T23:12:43.120+05:30Emergency Landing - disturbing touch down ! Video contributed by - Ms. Chhatbar<div class="separator" style="clear: both; text-align: center;"><iframe allowfullscreen='allowfullscreen' webkitallowfullscreen='webkitallowfullscreen' mozallowfullscreen='mozallowfullscreen' width='320' height='266' src='https://www.blogger.com/video.g?token=AD6v5dz8R6AEpPGMMp3dcPwN4xYYRZurFislFHZWq7XcLaloQtG8ciQzwjdb9os6t15drG0PuhKsFYHChi_CRp9dnQ' class='b-hbp-video b-uploaded' frameborder='0'></iframe></div><div class="separator" style="clear: both; text-align: center;">Unique Landing !</div>Unknownnoreply@blogger.com0