1. 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 – DECEMBER 2013 TM

2. INDEX Direct Taxation Indirect Taxation Corporate & Other Laws Corporate & Other Laws International taxation International taxation Statutory Due Dates for December 2013utory Due Dates for December 2013 Newsletter –December 2013 TM

3. DIRECT TAXATION IndexIndex Government notifies CYPRUS for fraud/ tax evasion non compliance Cyprus is notified as a Notified Jurisdictional Area Under Section 94a of the Income-Tax Act,1961 ; All Parties to the Transaction with a Person in Cyprus shall be treated as Associated Enterprises and the transaction shall be treated as an International Transaction resulting in application of Transfer- Pricing Regulations including maintenance of documentations. India and Cyprus have entered into an agreement for avoidance of double taxation of income and prevention of fiscal evasion which is in force since 21st December, 1994. Both the Contracting States under this agreement have a legal obligation to exchange such information as is necessary for carrying out the provisions of the agreement or of domestic laws of the Contracting States, in particular for the prevention of fraud or evasion of taxes. Since Cyprus has not been providing the information requested by the Indian tax authorities under the exchange of information provisions of the agreement, it has been decided to notify Cyprus as a notified jurisdictional area under section 94A of the Income-tax Act, 1961 through Notification No. 86/2013 dated 1st November, 2013 published in Official Gazette through SO 4625 GI/13.. Newsletter – December 2013 TM

4. INDIRECT TAXATION IndexIndex Lowering the threshold for mandatory e-payment for service tax and excise duty to rupees one lakh The Central Government vide Notification No. 16/2013-ST dated November 22, 2013 has amended the proviso to Rule 6(2) of the Service Tax Rules, 1994 and similarly, amendment has been made in the third proviso to Rule 8(1) of Central Excise Rules, 2002 vide Notification No. 15/2013-CX (N.T.) dated November 22, 2013 Notification No. 16/2013-ST dated November 22, 2013 Notification No. 15/2013-CX (N.T.) dated November 22, 2013 Presently, where an assessee has paid Service tax or Central Excise in Cash or through Cenvat credit of Rs. 10 lakh or more in the preceding financial year, he is required to make payment of Service tax or Central Excise electronically through internet banking. Now, this limit is reduced to Rs. 1 Lakh only under the Service Tax Rules and the Central Excise Rules. The above amendment will be applicable from January 1, 2014. Newsletter – December 2013 TM

5. INDIRECT TAXATION IndexIndex Time limit prescribed for filing FORM A3 by SEZ unit/ SEZ developer The Central Government vide Notification No. 15/2013-Service Tax dated November 21, 2013 has amended Notification No. 12/2013-Service Tax dated July 1, 2013.Notification 12/2013 exempts the services on which service tax is leviable under section 66B of the Finance Act, 1994 from the whole of the service tax, education cess, and secondary and higher education cess leviable thereon received by a unit located in a Special Economic Zone or Developer of SEZ and used for the authorised operations.Notification No. 12/2013-Service Tax dated July 1, 2013 In terms of para 3, sub para (II) clause (d) of the Notification 12/2013, SEZ Unit or the Developer had to furnish a quarterly statement, in Form A-3, to the jurisdictional Superintendent of Central Excise providing the details of specified services received by it without payment of service tax to avail ab initio exemption on the specified services received and used exclusively for authorised operations. The Notification has amended the above condition to provide for the time period by which such quarterly statement is to be filed. Accordingly, the SEZ Unit or the Developer shall furnish a quarterly statement in Form A-3 to the jurisdictional Superintendent of Central Excise without payment of service tax by 30 th of the month following the particular quarter. Further, the Notification states that Form A-3 pertaining to the period July, 2013 to September 2013 shall be furnished by December 15, 2013. TM Newsletter – December 2013

6. CORPORATE AND OTHER LAWSIndexIndex Unlisted companies can directly raise funds abroad The Reserve Bank of India on 8 th November 2013 said unlisted companies can directly list on stock exchanges abroad to raise funds for acquisitions or retiring overseas debts. This ia a move which may help India containing high current account deficit. As of now, unlisted companies are not allowed to directly list in overseas markets without prior or simultaneous listing in Indian markets. The scheme will be implemented on a pilot basis for a period of two years. However, RBI said, such companies can list abroad only on exchanges in International Organization of Securities Commissions (IOSCO)/ Financial Action Task Force (FATF) compliant jurisdictions or those jurisdictions with which SEBI has signed bilateral agreements. The capital raised abroad may be utilised for retiring outstanding overseas debt or for bona fide operations abroad including for acquisitions. In case the funds raised are not utilised abroad the company should repatriate the funds to India within 15 days and park it with scheduled bank. RBI further said the unlisted Indian company should comply with the instructions on downstream investment and the criteria of eligibility who can raise funds through ADRs/GDRs would be as prescribed by the government.. Newsletter – December 2013 TM

7. INTERNATIONAL TAXATION IndexIndex OECD Review - Cyprus, 3 others flunk tax test; India fully compliant A worldwide crackdown on illicit funds has left just four jurisdictions — Cyprus, Luxembourg, Seychelles and British Virgin Islands — non-compliant with global tax laws, while India has emerged as 'fully compliant'. On the other hand, Mauritius has been found to be 'largely compliant', while Switzerland is yet to be rated on this scale as the country has just signed a global convention on automatic exchange of information on tax issues. According to the latest list compiled by Paris-based OECD (Organisation for Economic Cooperation and Development), a total of 18 jurisdictions are rated 'Compliant', 26 are rated 'Largely Compliant', 2 jurisdictions are 'Partially Compliant' and four jurisdictions are 'Non-Compliant'. Switzerland and 13 other additional jurisdictions have not been given compliance ratings, pending further improvements to their legal and regulatory frameworks for exchange of information in tax matters, OECD said. Besides India, other jurisdictions that are 'compliant' include Australia, Belgium, China, Finland, France, Isle of Man, South Africa and Spain. Turkey and Austria have been found to be partially compliant with the framework. As part of crackdown on blackmoney menace, the Global Forum under the aegis of OECD carries out regular review of jurisdictions to address the risks posed by tax havens. Newsletter – December 2013 TM

8. STATUTORY DUE DATES FOR DECEMBER 2013 Index Index Statutory Due Dates Calendar for December 2013 Newsletter – December 2013 Due DateStatutory Compliance 5 th December 2013Payment of Service Tax/ Excise duty 7 th December 2013Payment of TDS 15 th December 2013Payment of Advance Income Tax 15 th December 2013Payment of Provident Fund contribution/ Profession Tax 21 st December 2013Payment of VAT TM

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10. Newsletter – December 2013 THANK YOU ! TM