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%.