Tuesday 22 July 2014

Important points for Budget 2014 only for corporate


Service Tax.
·         Works contracts – Now 70% is taxable 
·         Variable rate of interest for delayed payment of service tax.
·         w.e.from 1.10. 2014 Commission agent or consignment agent now covered under service tax.
·         Point of Taxation under reverse Charge – payment date or three month of invoice whichever is earlier.
·        
Input credit should be claimed within 6 months from date of invoice.
·         Pre-deposit of 7.5% / 10% for making appeal before CIT(A) / ITAT.
·         Recover tax dues from successor who purchase the assets from the defaulter.

Income Tax
·         Interest payable by company u/s 220 is from the date of original demand order passed and not the order passed by higher appellate authority. 
·          Company with principal business of trading in shares now not covered under speculation under section 73.
·         Commodity transactions now not covered under speculation u/s 43.
·         Introduction of Income computation and disclosure standards.
·         Disallowance under section 40(a)(i) restricted to 30% and applicable to all payments covered under TDS.
·         CSR expenses not deductible.
·          Under transfer pricing, use of multi years data now allowed.
·         Investment made by FIIS now capital asset.
·         Roll back of 4 years under advance pricing agreement
·         Foreign company dividend now taxable @ 15%.
·         No PAN required for overseas lender
·         Additional depreciation @ 15% on capital investment more than 25 Crore.
·         Single point taxation under Investment trust.
·         Debt oriented fund now short term till 36 Months.
·         DDT now increased to 20%.


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