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INDEX Direct Taxation Indirect Taxation Corporate & Other Laws Accounts & Audit Statutory Due Dates April 2015 Statutory Due Dates Newsletter – April 2015
DIRECT TAXATION IndexIndex No MAT on FIIs from April, old cases to continue The finance ministry on Wednesday, 4 th March 2015 said earlier cases of imposing minimum alternate tax (MAT) on foreign institutional investors would continue, even as they will be exempted from financial year ( assessment year) onwards. Considering the difficulties faced and concerns that have been expressed, the finance minister has included the provision to exempt (FIIs) from MAT. Constitution of Supreme Court Bench to deal exclusively with Tax Matters A Bench has been constituted by the Hon’ble Supreme Court to deal exclusively with Tax matters on all working days which is functional w.e.f. from 9th March, This will necessarily entail briefing the counsels for the Department as well as meeting the requirements of the court on real time basis. Newsletter – April 2015
INDIRECT TAXATION IndexIndex Chages to become effective in Service Tax w.e.f. 1 st April )Reduction in effective rate of Tax Service Tax to become payable only on 30% of the value of freight paid on Goods transport by vessels as against the current rate of 40% in view of changes in abatement rates. 2)Benefits under CENVAT Credit Cenvat Credit of Service Tax paid under partial reverse charge can be availed by the service receiver immediately on payment of tax without linking it to the payment to the service provider. 3)Increase in effective rate of tax Service Tax to become payable on 30% of the value of Goods transport by road and 60% of the value of air transport of passenger for higher classes as against the current rates of 25% and 40% respectively in view of changes in abatement rates. Service Tax to become payable on entire value of consideration for the fee or commission received by Chit Fund Foremen in relation to the Chit fund business. Presently, abatement is granted to the extent of 30%. Apart from this some services are made exempt while some become taxable wef 1 st April Newsletter –April 2015
INDIRECT TAXATION IndexIndex PAN mandatory for Service Tax Registration Vide Circular No. 997/4/2015, Permanent Account Number (PAN) is now mandatory for private firms for getting service tax registration besides and mobile number. The registration shall mandatorily require that the PAN number of the proprietor or the legal entity being registered should be quoted in the application except for government departments. Newsletter –April 2015
CORPORATE AND OTHER LAWSIndexIndex Loan received by a Private limited company before from members/directors/their relatives is not a deposit Vide General Circular 5/2015 dated 30 th March 2015, Amounts received by private companies prior to 1st April, 2014 from its members/directors/relatives of such directors shall not be treated as ‘deposits’ under the Companies Act, 2013 and Companies (Acceptance of Deposits) Rules, 2014 subject to the condition that relevant private company shall disclose, in the notes to its financial statement for the financial year commencing on or after 1st April, 2014 the figure of such amounts and the accounting head in which such amounts have been shown in the financial statement. Any renewal or acceptance of fresh deposits on or after 1st April, 2014 shall, however, be in accordance with the provisions of Companies Act, 2013 and rules made thereunder Newsletter – April 2015
ACCOUNTS AND AUDIT IndexIndex New Accounting Policies to impact corporate fund raising strategy The Union ministry of corporate affairs last month notified new accounting standards (IND AS) that converge with the International Financial Reporting Standards (IFRS) to be implemented in phases from This will affect fund-raising strategies through instruments such as non-convertible preference shares.The adoption is likely to significantly affect the reported net worth and the results of especially those having complex capital structures. Mandatory redeemable preference shares, which till now were shown as part of equity, will be classified as a liability under IND AS. Also the dividend and the dividend distribution taxon such capital will be recorded through the income statement as an expense instead of equity. It does not stop here and has a cascading effect. Companies that are expanding and incurring significant capital expenditure and also have outstanding preference share capital will now be required to capitalise such dividend costs as borrowing costs. ith the use of IND AS, the key ratios are affected leading to a more leveraged positions of balance sheets. As a result, companies will lose one of the advantages of using preference shares as an instrument for fund-raising Newsletter – April 2015
STATUTORY DUE DATES FOR APRIL 2015 Index Index Statutory Due Dates Calendar for April 2015 Newsletter – April 2015 Due DateStatutory Compliance 5 th April 2015Payment of Service Tax/ Excise duty 10 th April 2015Excise Return (if monthly) 15 th April 2015Payment of Provident Fund contribution/ Profession Tax 21 st April 2015Payment of VAT 25 th April 2015Filing of Service Tax Return 30 th April 2015Payment of TDS
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Newsletter – April 2015 THANK YOU !