We are dependable and trustworthy knowledge processing partner. Although we are a separate entity, we are an integrated part of your organization, like a slice of a wholesome pie. NEWSLETTER – OCTOBER 2012 TM

INDEX Direct Taxation Indirect Taxation Accounts & Audit Corporate & Other Laws Statutory Due Dates October 2012 Newsletter –October 2012 TM

DIRECT TAXATION IndexIndex CII for the financial year The Central Government notified the Cost Inflation Index (CII) for the financial year , it is 852. Tax Residency Certificate for foreign investors India has made it mandatory for all foreigners to furnish a tax residency certificate of their home country to claim benefits under the double taxation avoidance agreement. This will make the process of claiming tax credit easier for foreigners by removing the arbitrariness in the earlier regime. The Central Board of Direct Taxes, has notified changes to the income tax act prescribing a tax residency certificate. All non residents are entitled to claim benefits under the domestic tax law or the relevant tax treaty to the extent it is more beneficial to them. 5% TDS on borrowings in foreign currency In order to allow low cost foreign borrowings by Indian companies the Income Tax Act has been amended to lower the tax on such borrowings. The amendment to Section 115A and insertion of Section 194LC provide that the interest income of the non-resident investor will be taxed at a reduced rate of 5%instead of existing rate of 20%. Newsletter – October 2012 TM

DIRECT TAXATION IndexIndex Further the liability of Indian company to withhold tax on such income would also be at the reduced rate of 5%. This lower rate of taxation will apply to interest paid to a non-resident by an Indian company for money borrowed in foreign currency from a source outside India either under loan agreement or by way of long term infrastructure bonds. This is also subject to condition that the borrowing is made during the period 1 st July 2012 to 30 th June 2015 and such borrowing and the rate of interest are approved by the Central Government. With a view to lower the compliance burden and reduce the time lag which would arise on account of case-by- case approval, the Central Government has decided to grant approval to all borrowings by way of loan agreement and long-term infrastructure bonds that satisfy certain conditions. No specific approval in such cases would be required. Broadly, borrowings under a loan agreement or by way of issue of long-term infrastructure bonds that comply with External Commercial Borrowings (ECB) regulations as administered by the Reserve Bank of India (RBI) would be eligible for availing of the benefit of this concessional tax regime. TM Newsletter – October 2012

INDIRECT TAXATION IndexIndex Service Tax Returns – Period Covered The Government of India vide Notification no. 47/2012-Service Tax dated 28 th September 2012,amended the Service Tax Rules as regards the period covered under Service Tax Return. According to this amendment, the form ST -3 required to be submitted by 25 th October 2012, shall cover period between 1 st April to 30 th June 2012 only. E-Payment of Customs Duty CBEC in its circular No. 24/2012- Customs dated 5 th September 2012 stated that, it has been decided to make e- payment of duty mandatory for importers registered under accredited clients Programme and importers paying customs duty of One lakh rupees or more per bill of entry with effect from 17 th September Newsletter – October 2012 TM

ACCOUNTS & AUDIT IndexIndex Government to handle selection of auditors for public sector banks The Finance Ministry has said on 21 st September 2012 that, the Government will now handle the selection of auditors of state run banks. It will help in signaling growing concern over laxity in audit followed by lenders and possible overstatement of profits. Newsletter – October 2012 TM

CORPORATE AND OTHER LAWSIndexIndex New norms for converting co-operative society into procedure company The Ministry of Corporate Affairs has decided to impose conditions for conversion of ordinary society into producer company. In a circular on Wednesday, 19 th September 2012, the Ministry said that if a co-operative society is seeking conversion into a producer company, the Registrar of Companies (ROCs) will seek a written consent from the local co-operative department of the State concerned, certifying the Society seeking to convert itself into a Producer Company under the Companies Act, Further, the ROCs must satisfy themselves fully that the applicant society has indeed extended its activities outside the State where it is registered as a co-operative society under the local/State level law governing co-operative societies which are not inter-State co-operative societies. Due Date for Filing Form 23AC & 23 ACA further extended (without additional fees) The Ministry has issued general Circular No.21/2012 dated 28August 2012 and No. 28/2012 dated 3 rd September 2012 extending time for filing e-form 23AC (Non-XBRL) and 23ACA (Non-XBRL) up to or within 30 days from the date of AGM whichever is later. The revise e-forms 23AC (Non-XBRL) and 23ACA (Non- XBRL) have now been notified vide notification dated and shall come into effect from Newsletter – October 2012 TM

CORPORATE AND OTHER LAWSIndexIndex In order to ensure smooth filing and to avoid last minute rush, it is to inform you that with the approval of the competent authority, the due date of filing of e-forms 23AC (Non-XBRL) or 23ACA (Non-XBRL) as per new Schedule VI is now further extended in following manner without any additional fees:- (a) Company holding AGM or whose due date for holding AGM is on or before , the time limit will be or due date of filing, whichever is later. (b) Company holding AGM or whose due date for holding AGM is on or after , the time limit will be or due date of filing, whichever is later. TM Newsletter – October 2012

STATUTORY DUE DATES FOR OCTOBER 2012 Index Index Statutory Due Dates Calendar for October 2012 Newsletter – October 2012 Due DateStatutory Compliance 5 th October 2012Payment of Service Tax/ Excise duty 7 th October 2012Payment of TDS 15 th October 2012Payment of Provident Fund contribution/ Profession Tax 15 th October 2012Filing of Quarterly TDS Return ( July to September Qtr) 21 st October 2012Payment of VAT 25 th October 2012Filing of Service Tax Return 30 th October 2012Issue of Form 16A (within 15 days from the due date of filing the quarterly TDS Return) TM

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Newsletter – October 2012 THANK YOU ! TM