Highlights of the Finance Bill, 2013
·
Service Tax
o
Negative List will now include:
§
Courses run by Industrial Training Center affiliated to state council
for vocational training.
§
Process amounting to manufacture under medicinal & Toilet
Preparations
§
All testing in relation to agriculture or agriculture produce.
o
Amendment to mega exemption notification No.25/2012:
§
Exemption to charitable activities for advancement of any other object
of general public utility up to 25lakh- Withdrawn
§
Exemption to vehicle parking to general public and repair &
maintenance of government aircrafts- Withdrawn
§
Exemption by way of auxiliary educational services & renting of
immovable property by specified educational institutes-Not Available
§
Transportation of petroleum products, postal, household effects by
railway and vessel- Not Available
§
All AC restaurants- Liable to
service tax
§
Cinematograph films- Exemption
restricted to those exhibited at theatre hall
o
Now Even public companies can Approach AAR.
o
Penalty u/s 77(a) restricted to Rs.10,000/-
o
Section 78A introduced to levy penalty on directors & officials for
specified offence in case of willful actions.
o
Construction of complex, building, civil structure reduced from 75% to
70% if carpet area is more than 2,000sq. ft or where amount charged is more
than Rs.1cr.
o
Service tax voluntary compliance scheme introduced for dues between
period 01.10.2007 to 01.03.2013
·
Excise &
Custom & Others
o
Thresh hold under section 9 increased to 50lakh for punishment with
fine.
o
Section 20 apply only to non-cognizable offence
o
Mobile including cellular phone of RSP of more than 2,000/- tariff
increased to 6%
o
Goods manufactured & captively consumed in areas based exemption
notification scheme (49 & 50/03) – Exempted
o
Concessional duty on hybrid electric vehicles period extended up to
31.03.2015
o
SUVs of engine capacity more than 1500cc- increased to 30%
o
Specific duty on cigrates, Cigars Increased.
o
Chasis of diesel motor vehicle for transport of goods reduced from 14
to 13%
o
Advance ruling will also cover proposal to start new line of business
by applicants under customs & central Excise Laws
o
AR will also cover eligibility for CENVAT credit on input services for
a manufacturer of excisable goods
o
Non-bailable offence under customs act will include:
§ Evasion of duty over 50lakh
§ Import of prohibited goods u/s11
§ Import of any goods which are not declared market
price of which exceed Rs.1cr
§ Fraudlent availment of drawback from duty exceeding
Rs.50lakh
o
No refund if claim is less than Rs.100/-
o
Electronic filling of IGM & EGM Allowed
o
Commodities transaction tax is introduced to tax taxable commodities
transactions other than Agricultural commodities. The tax will be .01% on value
of such transaction & such tax shall be payble by the seller.
·
Income Tax
o
For resident individual if
total income does not exceed Rs.5lakh Tax credit for Rs.2,000/- or actual tax
which ever is lower provided.(87A)
o
No change in Tax Slabs.
o
Domestic company having total income exceeding Rs.1cr will pay
surcharge @5% if income exceeds Rs.10cr
surcharge will be @10%.
o
Foreign company liable to surcharge @5% if total income exceeds
Rs.10cr.
o
Dividend tax will be subject to surcharge @10%.
o
Individual, HUF, AOP, BOI, Cooperative society, Firm, local Authotity
will be subject to surcharge @10% if total income Exceeds Rs.1cr.
o
For individual taking loan for his first home from bank/HFC up to
Rs.25lakh during 2013-2014 will be given additional one time deduction up to
Rs.1lakh.(80EE)
o
STT reduced on seller as follows:
§
Equity features: from .017% to .01%
§
MF/ETF at counters: from .25% to .001%
§
MF/ETF on exchange: from .1% to .001%.
o
Immovable property purchase for inadequate consideration will subject
to tax within parameters of section 56(2)(vii).
o
Provision of section 50C will apply even in case of transfer of an
asset other than capital asset.
o
1% TDS will be charged on transfer of immovable property exceeding
50lakh.
o
A manufacturing company will be entitled 15% investment allowance over
& above depreciation for fresh investment in excess of Rs.100cr in new
plant & machinery.(32AC)
o
If Consideration against transfer of an asset other than capital asset
being land or building or both is less than value adopted for payment of stamp
duty than such value so adopted will be deemed to be full value of consideration
received as a result of such transfer. (43CA).
o
80IA period extended to 31.03.2014.
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