INDEX Direct Taxation Indirect Taxation Corporate & Other Laws Accounting & Audit

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2. INDEX • Direct Taxation • Indirect Taxation • Corporate & Other Laws • Accounting & Audit • Statutory Due Dates for November 2013 TM Newsletter –November 2013

3. DIRECT TAXATION Index Directors Salaries under IT scanner in new Transfer Pricing Rule With transfer pricing being extended to domestic transactions in the Finance Act, 2012, as well under section 92BA of the Income Tax Act, 1961, directors’ salaries have also come under scanner. Due to the absence of data points for comparison of their remuneration, companies might have to take the help of third-party research on director salaries and it is difficult task. Directors that are shareholders will also face more problems. Transfer pricing is a commercial transactions between different parts of the groups and one party transferring to the other goods, services or technology for a price. Now, directors’ salaries are also covered under this. Till now, this was restricted to international transfers but certain domestic transactions have now been covered. Tax Audit & ROI due date made 31st October 2013 CBDT vide order No.  F. No. 225/117/ 2013/ ITA.II u/s 119 dated 24/10/2013 has directed that in cases where the ‘due date’ of audit and corresponding income-tax returns was 30th September, 2013 and where the same are furnished electronically on or before 31st October, 2013, such reports of audit and returns of income shall be deemed to have been furnished within the ‘due date’ specified u/s 139 of the Income Tax Act, 1961. TM Newsletter – November 2013

4. INDIRECT TAXATION Index Exemption on Services provided in relation to serving of food in canteen maintained by a Factory The Central Government vide Notification No. 14/2013-ST dated October 22, 2013 amended the  Notification No. 25/2012-ST dated June 20, 2012 (the Mega Exemption Notification). The Notification adds Entry No. 19A in the Mega Exemption Notification. According to this services provided in relation to serving of food or beverages by a canteen having the facility of air-conditioning or central air-heating at any time during the year maintained in a factory covered under the Factories Act, 1948 will be exempt from levy of service tax. TM Newsletter – November 2013

5. CORPORATE AND OTHER LAWSIndex Profession tax payers in Maharashtra to communicate their PAN or TAN or both The Government of Maharashtra amended the Maharashtra State Tax on Professions, Trades, Callings and Employments Rules, 1975 (PT Rules) vide notification PFT 1012 /CR 60, making it mandatory for the new and all the existing Profession Tax Payers to communicate their income tax PAN or TAN or both, as the case may be, to the Department. It is proposed to collect the same. It is also proposed to update the information of latest addresses, telephone numbers, e-mail IDs, PTRC and PTEC numbers of all the profession tax payers. Special Deposit Scheme (SDS), 1975 – Revision of Rate of Interest The Ministry of Finance (Department of Economic Affairs), Government of India, vide its Notification F No.5(4)-B(PD)/2013 dated April 08, 2013, has notified revision in the interest rate on the deposits under the Special Deposit Scheme for Non-Government Provident, Superannuation and Gratuity Funds. Rate of Interest With effect from April 01, 2013 will be 8.7% p.a. TM Newsletter – November 2013

6. ACCOUNTING & AUDIT Index NFRA to get powers to investigate audit firms Apart from laying down accounting and auditing policies and standards for India Inc, the proposed National Financial Reporting Authority (NFRA) envisaged in the new Companies Act, 2013, will also conduct quality review of audit of listed and unlisted companies, said the draft rules released by the ministry of corporate affairs (MCA). With powers to lay down accounting and auditing policies and standards for adoption by companies or class of companies or their auditors, the proposed NFRA will be able to take over a bulk of the work currently being executed by the Institute of Chartered Accountants of India. NFRA will also undertake investigation or conduct quality review of audit of listed companies, unlisted companies with net worth not less than R500 crore or paid-up capital not less than R500 crore or annual turnover not less than R1,000 crore as on March 31 of immediately preceding financial year. It will also undertake audit review of companies having securities listed outside India. The draft rule also mention that the proposed entity will also be responsible for monitoring and ensuring compliance with accounting and auditing standards. TM Newsletter – November 2013

7. STATUTORY DUE DATES FOR NOVEMBER 2013 Index Statutory Due Dates Calendar for November 2013 TM Newsletter – November 2013

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