INDEX Direct Taxation Indirect Taxation Corporate and Other Laws International Trade

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2. INDEX • Direct Taxation • Indirect Taxation • Corporate and Other Laws • International Trade • Statutory Due Dates for February 2014 TM Newsletter –February 2014

3. DIRECT TAXATION Index • Income Tax PAN Application :Original Proof Verification Mandatory wef 03.02.2014 Vide, Circular No. 11 dated 16.01.2014, the procedure for PAN allotment process will undergo a change w.e.f. 03.02.2014. From this date onwards, every PAN applicant has to submit self-attested copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents and also produce original documents of such POI/POA/DOB documents, for verification at the counter of PAN Facilitation Centres. The copies of Proof of Identity (POI), Proof of Address (POA) and Date of Birth (DOB) documents attached with PAN application form, will be verified vis a vis their original documents at the time of submission of PAN application at PAN Facilitation Centre. Original documents shall not be retained by the PAN Facilitation Centres and will be returned back to the applicant after verification. But, on 30th Jan 2014, the Central Board of Direct Taxes (CBDT) has decided to keep in abeyance the decision to change the procedure for PAN allotment till further orders. Accordingly, the operation ofCircular No. 11 dated 16.01.2014 issued to PAN service providers has been directed to be put on hold till further orders. In the meantime, the old procedure of PAN application and allotment shall continue. TM Newsletter –February 2014

4. DIRECT TAXATION Index • Submission of form 27A generated by FVU wef 1st Feb 2014 • With effect from February 1, 2014, it is mandatory to submit Form 27A generated by TDS/TCS FVU (File Validation Utility) duly signed, along the TDS/TCS statement/(s). Any other Form 27A submitted will be treated as invalid submission and the same will be rejected by TIN-FC branches. • NO TDS on service tax if shown separately • Earlier, vide Circular No. 4/2008 dated 28-04-2008 it was clarified that tax is to be deducted at source under Section 194-I of the Act, on the amount of rent paid/payable without including the service tax component. Representations/letters has been filed to CBDT seeking clarification whether such principle can be extended to other provisions of the Act also. • CBDT has examined the matter afresh and clarified vide Circular No. 1/2014 dated 13-1-2014 as under -“TDS under Chapter XVII-B of the Income-tax Act, 1961 on service tax component comprised of payments made to residents” that wherever in terms of the agreement/contract between the payer and the payee, the service tax component comprised in the amount payable to a resident is indicated separately, tax shall be deducted at source under Chapter XVII-B of the Act on the amount paid/ payable without including such service tax component. TM Newsletter – February 2014

5. INDIRECT TAXATION Index • Clarification over CENVAT credit to be utilized under Service Tax Act • A clarification was sought as to whether the first installment of tax dues paid (Minimum 50% of tax dues) under the Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES or the Scheme) would be available as Cenvat Credit immediately after payment or only after payment of tax dues in full and receipt of acknowledgement of discharge certificate in form VCES-3. • The CBEC has issued Circular No. 176/2/2014-ST dated January 20, 2014 clarifying that: Cenvat credit shall only be available after payment of entire service tax dues and obtaining discharge certificate in form VCES 3 since the declaration made under the Scheme becomes conclusive only on issuance of acknowledgement of discharge under Section 107(7) of the Finance Act, 2013. TM Newsletter – February 2014

6. CORPORATE AND OTHER LAWSIndex • Pre 2005 notes to go out of currency from March 31 • The Reserve Bank of India (RBI) on Wednesday, 22nd January 2014 decided to withdraw all currency notes issued prior to 2005, including Rs. 500 and Rs. 1,000 denominations, starting March 31. The step was aimed at curbing black money and fake currencies in the country. • From April 1, 2014, the public will be required to approach banks for exchanging these notes. Banks will provide exchange facility for these notes until further communication. TM Newsletter – February 2014

7. INTERNATIONAL TRADE Index • Switzerland Ready to Discuss Tax Info Exchange With India • Switzerland has agreed to an OECD global automatic exchange of tax information framework, which would further enhance its information exchange mechanism with India after becoming operational. Intensifying efforts to address Indian concerns over alleged stashing of illicit funds in Swiss banks, Switzerland will send a delegation to India to discuss the “current situation” and define measures for greater cooperation on tax matters. • There have been concerns in India about limited flow of tax information from Switzerland about Indian citizens who have allegedly stashed away unaccounted money in Swiss banks. As per the latest data available with the European nation’s central bank, the Swiss National Bank, the total funds held by Indians in Swiss banks declined to a record low of about Rs 9,000 crore (1.42 billion Swiss francs) at the end of 2012, as compared to around Rs14,000 crore (2.18 billion Swiss francs) a year ago. TM Newsletter – February 2014

8. STATUTORY DUE DATES FOR FEBRUARY 2014 Index • Statutory Due Dates Calendar for February 2014 TM Newsletter – February 2014

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