Direct Tax Highlights of Budget 2012-13 List

Direct Tax Highlights of Budget 2012-13 List

• Turnover limit for compulsory tax audit for SMEs raised from Rs.60 lakh to Rs.1 crore
• Income tax exemption limit raised from Rs.1,80,000 to Rs.2,00,000; upper limit of 20 per cent tax slab raised from Rs.8 lakh to Rs.10 lakh
• White paper on Black Money to be introduced in the current session of Parliament
• Interest from savings bank accounts deductible upto Rs.10,000; deduction of upto Rs.5,000 for preventive health check-up
• General Anti Avoidance Rule being introduced to counter aggressive tax avoidance
• Withholding tax rate on interest on ECB reduced from 20% to 5% for 3 years for specified sectors
• TCS on cash purchase of immovable property above specified limit
• Cascading effect of DDT in a multi-layer corporate structure removed
• A number of measures proposed to deter generation and use of unaccounted money
• STT reduced from 0.125% to 0.1%
• 82 Double Taxation Avoidance Agreements and 19 Tax Information Exchange Agreements finalised: FM
• Tax @ 30% on unexplained credit or investment (slab rate benefit not available)
• TCS on cash purchase of bullion and jewellery
• No change in corporate tax rate and tax structures
• Senior citizens without business income exempt from advance tax
• Re-opening of tax assessments upto 16 years in case of overseas assets
• 15% rate for dividends from foreign companies extended for FY 2012-13

Budget 2012 - 13 Highlights..........

Budget in Detail

Union Budget 2012-13
Budget 2012-13:
• Income up to 2 lakhs - Nil
-- Rs. 2-5 lakhs - - 10 per cent
-- Rs. 5 lakhs -10 lakhs - 20 per cent
-- Rs. 10 lakhs and above - 30 per cent
• GST will be operational by August 2012
• Excise duty hiked from 10 per cent to 12 per cent
• Service Tax hiked from 10 per cent to 12 per cent
• Basis Exemption Limit 2 Lakhs
• STT cut to 0.1%.
• No change in corporate tax,DTC Deferred Further
• Global crude oil prices have crossed $115 per barrel
• Food and fertiliser subsidy largest expenditure.
• Fiscal deficit rose due to subsidy.
• Decided to fully provide for food subsidy in the budget
• FRBM implementation back on track
• Aadhar-enabled payment of select government schemes in 50 districts
• Rs 30,000 cr divestment target in FY 13
• To bring down subsidy to 1.7 % of GDP in the next 3 years
• To roll out computerized scheme for fertilizer subsidy transfer
• The Nandan Nilekani panel recommendation on direct transfer of subsidy accepted
• FY13 subsidy to be under 2% of GDP
•
• Find ways to expedite implementation of decision, prompt delivery and good governance with transparency, while curbing black money and corruption
• Remove bottlenecks in agriculture, energy, transport, coal, power and national highways
• Ensure rapid rise in private investment
• Frame policies that trigger domestic demand recovery
• Direct cash subsity to LPG, Kerosene
• Efforts to arrive at broadbased consensus with state governments on allowing FDI in multibrand retail up to 51 per cent
• Direct transfer of subsidy for kerosene initiated
• Direct Tax Code (DTC) Bill to be enacted at the earliest
• To introduce Rajiv Gandhi [ Images ] Equity Scheme for retail investors
• Tax incentive for new investors, These make sense when you consider that the share of household savings delpoyed in capital markets has come down sharply.
• Changes in IPO norms to increase participation in small towns
• Plan outlay for agriculture raised by 18% to Rs 20208 crore in FY 13
• Rs 300 crore for intensified irrigation program
• Retail stocks rally as Budget commits to multi-brand FDI
• Telecom towers made eligible for viability gap funding
• Agriculture credit target raised to Rs 5.75 lakh crore in FY13
• Agriculture allocation increased to Rs 5,75,000 crore.
• To allocate Rs 10,000 cr for NABARD to refinance RRBs.
• To allocate Rs 10,000 crore for NABARD for refinancing RRBs
• Government to set up Rs 5,000 crore venture fund for MSME sector
• To allow ECB borrowing to part-finance power projects.
• Agriculture credit target to be raised by Rs 1,00,000 crore to Rs 5,75,000 crore.
• Kisan credit cards can now be used for ATM machines.
• Change in IPO guidleines to promote small town participation
• Will allow external commercial borrowing for power, housing road construction companies
• To make 8,800 km of highways in FY13; outlay raised
• Plan outlay raised 18% to Rs 20,208 cr for agriculture
• Irrigation, dams to be eligible for special funding
• Telecom towers made eligible for viability gap funding
• Fuel supply constraints have hit power supplies nationally
• Current account deficit 3.6 percent in 2011-12; this put pressure on exchange rate.
• Advance Pricing Agreements in DTC to be in Finance Bill
• Corporate market reforms to be initiated.
• Allocation for national highways up 14 per cent. 8,800 km of highways to be developed under National Highway Development Project in 2012-13.
• Encourage small and medium artisans. Powerloom mega clusters to be set up.
• Foreign loans for low-cost housing projects.
• Foreign loan cap raised for airlines.
• To allow ECB funding to finance working capital needs of airlines for 1 year
• External commercial borrowings to the extent of $ 1 billion to be allowed for aviation sector for next year.
• Addressing malnutrition, black money and corruption in public life among five priorities in the year ahead.
• Budget to provide Rs 15,888 crore for recapitalisation of PSU banks, regional rural banks.
• Government examining new ways of providing subsidies for LPG, kerosene.
• Tax exemption on individual share investment below Rs 10 lakh.
• Govt to create Financial Holding company to meet financial needs of PSU banks.
• Income Tax deduction of 50 per cent on investments of up to Rs 50,000 in savings scheme named after Rajiv Gandhi.
• 3-year lock-in period exemption under Rajiv Gandhi scheme.
• Increase in investments in infrastructure through PPP.
• Coal India advised to sign FSA with power plants
• Infrastructure investment in 12th Plan to go up to Rs 50 lakh crore; half of it to come from private sector.
• To allow qualified FII into domestic corporate bonds
• Rs 15890 crore for recapitalisation of PSU banks
• Extend RRB capitalisation for 2 years
• Propose Central KYC depository
• Full exemption from basic customs duty for equipment for road and highway construction
• Full exemption from basic customs duty on natural gas, LNG, uranium for generation of electricity for two years.
• Customs duty on import of parts of aircraft, tyres and testing equipment fully exempted
• Excise duty on handmade and semi-mechanised matches reduced from 10 to 6 per cent
• Increase excise duty on some cigarettes
• Solar energy plants exempted from Customs Duty
• Excise duty on all processed food brought down to merit rate of 6 per cent..

Changes in ISCA Syllabus ( CA Final)

Friends,


There are few amendments in ISCA Syllabus .  These were made by CA Institute in January 2012.
Any ways , these amendments are not applicable for May 2012 attempt.


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SPECIMEN OF ELIGIBILITY CERTIFICATE OF PROPOSED AUDITORS U/S 224(1B)

ABC & Associates,

Chartered Accountants

Lane-5, Bada Chowk,

Meerut (U.P.)

To,

The Board of Directors,

ABC Private Limited,

Meerut.

Reg.: Appointment as Statutory Auditor of your Company "Consent and Eligibility"

Dear Sir,

With reference our discussion and your offer for our appointment as the Statutory Auditors of your Company, we do hereby declare and confirm that we are duly qualified and eligible for this appointment as per the provisions of section 224(1B) and 226(1) of the Companies Act, 1956.

Thanking you

Yours Sincerely

For ABC & ASSOCIATES

CHARTERED ACCOUNTANTS

Mr. Ramesh

SPECIMEN OF THE SPECIAL NOTICE/REQUISITION RECEIVED FROM A MEMBER TO CALL AN EGM

From:

Raj Verma

Member,

Cipla Ltd.

Lane-34, Ist Floor

Meerut (U.P.)

To.

The Board of Directors,

Cipla Ltd.

Z-4, Borivilly,

Mumbai (M.H.)

Sub: Requisition for calling an Extraordinary General Meeting u/s 169

Sir.

I, the under signed member of the Company holding 37.20% of the paid up share capital issued by the Company as set out in the Schedule hereto requires you in terms of section 169 of the Companies Act, 1956 and Article 129 of the Articles of Association of the Company to convene an Extra Ordinary General Meeting of the members of the Company, to transact the following businesses by Ordinary Resolution:

(1) REMOVAL OF AUDITORS

RESOLVED THAT pursuant to the provision of section 224(7) of the Companies Act. 1956 and subject to the approval of the Central Government (Powers delegated to the Regional Director), M/s Jain & Co., Chartered Accountants of Kanpur, who were appointed as the Auditors of the Company at the last Annual General Meeting to hold office up to the conclusion of the next Annual General Meeting of the Company be and are hereby removed from such office of the Auditors, before the expiry of their term.

(2) APPOINTMENT OF NEW AUDITORS:

RESOLVED THAT pursuant to the provision of sections 224, 224(18) and 225 of the Companies Act, 1956 and subject to the approval of the Central Government (Powers delegated to the Regional Director) for the removal of M/s Jain & Co., Chartered Accountants, the existing Auditors of the Company, M/s malhotra & Associates,. Chartered Accountants of Meerut be and are hereby appointed as the Auditors of the Company to hold office from the date of Order of Removal of the Auditors as approved by the Regional Director up to the conclusion of the next Annual General Meeting of the Company on a remuneration of Rs. 6,500 plus of out of pocket expenses.

Name of the requisitionist: Raj Verma

L. F. No.: 253

Shares held: 1,02,800

% Holding: 37.20%

Signature:

PLACE: Meerut

DATED:

SPECIMEN OF THE RESOLUTIONS PASSED BY THE MEMBERS

I. FOR APPOINTMENT OF AUDITORS AT THE ANNUAL GENERAL MEETING

“RESOLVED THAT M/s ABC & Co. Chartered Accountants, the retiring Auditors be and are hereby reappointed as Auditors of the Company to hold office until the conclusion of the next Annual General Meeting and that they be paid a fee of Rs. 6,500 (Rs. Sixty Five Hundred Only) for Auditing the Accounts of the Company plus out of Pocket Expenses incurred by them.”

II. ORDINARY RESOLUTION PASSED AT THE EGM FOR REMOVING EXISTING AUDITORS SUBJECT TO APPROVAL OF REGIONAL DIRECTOR

“RESOLVED THAT pursuant to the provision of section 224(7) of the Companies Act, 1956 and subject to the approval of the Central Government (Powers delegated to the Regional Director), M/s ABC & Co., Chartered Accountants of Kanpur, who were appointed as the Auditors of the Company at the last Annual General Meeting to hold office up to the conclusion of the next Annual General Meeting of the Company, be and are hereby removed from such office of the Auditors, before the expiry of their term.”

III. ORDINARY RESOLUTION PASSED AT THE EGM FOR APPOINTING NEW AUDITORS SUBJECT TO APPROVAL OF REGIONAL DIRECTOR

“RESOLVED THAT pursuant to the provision of section 224, 224(1B) and 225 of the Companies Act, 1956 and subject to the approval of the Central Government (Powers delegated to the Regional Director) for the removal of the existing Auditors of the Company, M/s Jain & Co., Chartered Accountants of Mysore, M/s Malhotra & Associates, Chartered Accountants of Kanpur, be and are hereby appointed as the Auditors of the Company to hold office from the date of order of removal of the Auditors as approved by the Regional Director up to the conclusion of the next Annual General Meeting of the Company on a remuneration of Rs. 6,500 plus out of pocket expenses.

SPECIMEN OF THE BOARD RESOLUTION FOR AUTHORIZING TO FILE APPLICATION

“RESOLVED THAT an application in the prescribed e-Form 24A for approval for the removal of Auditor u/s 224(7) of the Companies Act, 1956 be made to the Regional Director, Ministry of Company Affairs, Western Region, Mumbai.

RESOLVED FURTHER THAT Mr. Manoj, Director and/or Company Secretary of the Company be and is hereby authorised to sign the application on behalf of the Board and execute an affidavit verifying the contents of the application.

RESOLVED FURTHER THAT Company Secretary be and is hereby authorised to file the above said application with the Regional Director, Western Region, Department of Company Affairs and to appear before the Regional Director on behalf of the Company and to do all such acts, deeds and things as may be required in the matter and to give all details, statements as may be required by the Regional Director.”

SPECIMEN OF BOARD RESOLUTION FOR APPOINTMENT OF THE FIRST AUDITORS

The Chairman informed that the first auditors of the company are to be appointed in the Board meeting within one month from the date of incorporation of the company. He informed that he had got consent of M/s A Jain & Associates, Chartered Accountants, for their appointment as the first auditors of the company. The Board considered and passed the following resolution unanimously:

“RESOLVED THAT pursuant to the provision of section 224 of the Companies Act, 1956, M/s A Jain & Associates, Chartered Accountants of Meerut from whom certificate pursuant to section 224(1B) of the Companies Act has been received, be and are hereby appointed as the first auditors of the company to hold office until the conclusion of the first annual general meeting of the company at a remuneration to be determined by the Board of directors of the company.