Surcharge for domestic company
No change in to surcharge @ 5% up to income of Rs. 1 crore
But
Surcharge will be increased from 5% to 10% if in case of income exceed 10 crore.
Surcharge for Foreign company
Surcharge increased from 2% to 5% if taxable income exceed 10 crore.
Surcharge on dividend distribution tax
Increased from 5% to 10% this additional surcharge will force only for one year
Withholding tax on royalty payment to non resident
Withholding tax on royalty payment to non resident increased to 25%
TDS on sale of land and building
TDS @ 1% applicable on sale of land and building if value exceeds Rs. 50 lakh. Excluding agricultural land
Ports
Two major Ports to be set up – one in west Bengal and another in Andhra Pradesh
Reduction in STT
Reduction in STT from 0.17% to 0.11% on equity futures.
Income distributed on non- equity funds
The rate of tax on income distributed by all non-equity Funds to an individual or HUF increased to 25 percent from 12.5
percent.
Service tax
Introduction of Service tax on all air conditioned restaurants, on vehicle parking, etc.
Custom and Excise duty
Custom duty increased on high-end motor vehicles, bikes, yachts, etc.
Excise duty on SUVs, mobile phones above INR 2,000, marble slabs or tiles etc.
Relief given to branded ready-made garment industry by re-introducing zero Excise duty regimes.
strengthen compliance/ enforcement :
Provision allowing for the imposition of a penalty for directors, managers, or other officers of a company who are
Knowingly involved in contraventions of the provisions of the service tax laws
–– Automatic vacation of stay granted by Tribunal (on Excise and Customs matters) after 365 days (even if delay is not
Attributable to the assessee)
GAAR modified and made operative from financial year 2015-2016 as against financial year 2013-2014.
Other tax proposal
The Tax Authorities can direct special third party audit in cases relating to the volume of the accounts, doubts about the correctness of the accounts, multiplicity of transactions or specialized nature of business activity of the taxpayer. This amendment to be applicable from 1 June 2013.
The tax dues that can be recovered from any partner or director of a LLP or Private Company under liquidation to now include penalty, interest or any other sum payable under the Act. This amendment to be applicable from 1 June 2013.
No deduction eligible to an Indian company or specified taxpayers in respect of sums paid in cash to any political party or an electoral trust.
The Board to make rules for filing of wealth tax return in electronic form and specified documents to be furnished on
demand by the Tax Officer.
Amendments (effective from 1 March 2013)
Exemption from BCD for specified parts for the manufacture of hybrid and electric vehicles extended up to 31 March 2015
BCD on bituminous coal reduced from 5 percent to 2 percent and CVD from 6 percent to 2 percent
Six more methods introduced for determination of arm lenth price for transfer pricing
The Central Government has amended various tax treaties viz Indonesia, Sweden, UK, Spain, Uzbekistan, Nepal, the
Netherlands, Norway, Japan, Estonia, Lithuania, Poland, Taiwan and Malaysia.
CAclubindia
