Indirect Tax Laws Amendment Made By Finance Act, 2012 As Compiled By The Institute of Cost Accountants of India  Applicable for June 2013 and December 2013 Examinations of CMA Students  A. EXCISE  AMENDMENTS IN THE CENTRAL EXCISE ACT, 1944  (1) Incorporation of definition of “inter-connected undertakings” in section 4 (Effective from May 28th, 2012) Section [...]

Raise personal income tax exemption limit to Rs 3 lakh, reduce service tax and excise tax to eight per cent from 12 per cent and increase deduction of interest on housing loan to 5 lakh to revive consumer demand and boost investment, ASSOCHAM said in its pre-Budget recommendations to the government. The effective rate of corporate tax should also be brought down to 25 per cent from 32.45 per cent at present.

TDS calculator for Salaried for Financial Year 2012-13 – We have uploaded below the TDS calculator for salaried Government and Non Government Employees in Excel format. The Calculator have Following Featurs:- 1. Auto Calculate TDS deductible or Tax Payable. 2. Auto Calculate Deduction for HRA.3. Updated with Changed made by Union Budget 2012-13 4. Calculate Tax/ TDS of Male, Female, Senior Citizen and Very Senior Citizen.

Service tax of 12.36 per cent has been imposed on the taxable services provided by the Film Artists. As a preparation for the introduction of a nationwide comprehensive Goods and Service Tax (GST), comprehensive approach to taxation of services has been brought into effect from the 1st day of July, 2012.

Reverse charge mechanism- Usually service provider is liable to pay service tax for the services provided except for the few services covered under reverse charge, under which service receiver is liable to pay service tax. This mechanism has not been altogether a new mechanism. This mechanism was prevalent in the earlier service tax law as well. However scope of this mechanism has been enlarged in a greater way.

Budget 2012 Presented by Finance Minister on 17.03.2012 proposed that the cycles for the payment service tax and filing of return should coincide. In View of the same Following Changes are proposed in Rules Related to periodicity of Service tax Return Filing and Service tax payment.

The concept of reverse though important, has limited applicability in our day-to-day life. We are familiar with reversing a vehicle for limited purposes. A vehicle cannot be driven in reverse for moving forward. However, when it comes to levy of taxation it is not the case. Under the ST, till 30th June, 2012 the concept of levying tax on reverse charge (RC) had limited applicability as only few types of transactions were covered there under. With effect from 1st July, 2012 the things are going to change dramatically.

In order to provide effective deterrence against delay in furnishing of TDS statement, it is proposed – (i) to provide for levy of fee of Rs.200 per day for late furnishing of TDS statement from the due date of furnishing of TDS statement to the date of furnishing of TDS statement. However, the total amount of fee shall not exceed the total amount of tax deductible during the period for which the TDS statement is delayed, and (ii) to provide that in addition to said fee, a penalty ranging from Rs.10,000 to Rs.1,00,000 shall also be levied for not furnishing TDS statement within the prescribed time.

From the date the Finance Bill 2012 was introduced on March 17, 2012 until date, there have been numerous amendments made in the service tax law. Several notifications have been issued over the last three months and many of them have already been superseded by a fresh set of notifications issued on June 20, 2012. In all 40 Notifications have been issued under service tax over the last three months.

The following Act of Parliament received the assent of the President on the 28th May, 2012 and is hereby published for general information. In the Customs Act, 1962 (hereinafter referred to as the Customs Act), in section 2, in clause (10), after the words “to be a customs airport”, the words, brackets and letters “and includes a place appointed under clause (aa) of that section to be an air freight station” shall be inserted. (52 of 1962.)