B A S & C0

Chartered Accountants www.basco.in

Head Office: Suryadeep Building, 2nd Floor, 1/1E/6 Rani Harsha Mukhi Road, Kolkata-700002 Tele:+91-33-25465295 Fax-+91-33-25587917 E-mail:arun@basco.in

Branch Office: A-504, Infinity Towers, Near Hotel Ramada, Corporate Road, OppPrahladnagar Garden Anandnagar Road Satellite, Ahmedabad-380015 Mob: 09879105798 E-mail: sumeet@basco.in

Following are some of the key highlights of Taxation dimension of the Union Budget 2013-14 presented by Honble Finance Minister P Chidambaram in Parliament on Thursday (28.02.2013):

1. No change in the Income tax rates and slabs. 2. Tax credit for Rs. 2, 000 who earns taxable income upto Rs. 5, 00,000. 3. Surcharge : a) For domestic companies, surcharge is proposed at 10% as against 5 % when annual income exceeding Rs 10 crores. b) For foreign companies, surcharge is proposed at 5 % as against 2%. c) Companies with income exceeding Rs. 10 crores, surcharge is charged at 10 %. 4. Securities Transaction Tax : a) On equities and mutual fund units, STT reduced from 0.17% to 0.1%. b) STT rates on equity futures to 0.01%. c) STT rates on Mutual funds/ ETFs redemption at fund counter reduced to 0.001% from 0.25%. d) STT rates on Mutual Funds/ ETF purchased/ sale on exchanges: from 0.2% to 0.001%.(only on seller) 5. Commodities Transaction Tax (CTT) on non-agricultural futures contracts introduced at 0.1%. 6. DDT surcharge raised to 10% from 5%. 7. TDS is to be deducted on land deals exceeding Rs. 50, 00, 000 at the rate of 1%. 8. Section 80IA to be extended by one year. 9. 20% final withholding tax on unlisted companys share buy-back. 10. Donations made to National Childrens Fund will now be eligible for 100% tax Deduction. 11.Persons taking first time home loan upto Rs. 25, 00,000 during financial year 20132014, shall be allowed an additional tax deduction on interest upto Rs.1, 00, 000.

DUTIES: 1. There has been no change in the standard rates of excise duty and service tax. 2. Excise duty on non-taxi SUVs (Special Utility Vehicles) increased from 27% to 30%. 3. Imported mobile phones with value exceeding Rs.2,000 attracts an increased excise duty of 6% as against 1 %. 4. No duty on import of ships and vehicles. 5. Increase in import duty on high end motor vehicles to 100 % from 75% and on motor cycle to 75% from 60 %. 6. Duty free limit on gold by persons coming from abroad raised to Rs.50, 000 in case of male and Rs. 1, 00, 000 in case of females. 7. 4% Excise Duty on silver manufactured from smelting zinc, ore and lead. 8. Excise Duty on marble increased to Rs. 60 per Sq. Mtr from Rs. 30 per Sq. Mtr. 9. In Case of Spun Yarn (readymade garment), there will be a duty of 12 % at the fiber stage. 10. Duty on Set top boxes increased to 10% from existing 5%. 11. Export Duty on De-oiled rice bran, oil cake has been withdrawn. 12. Duty on Specified Machinery for manufacture of leather & leather goods reduced to 7.5% from 5%,

SERVICE TAX: 13.Service tax imposed on all air-conditioned restaurants irrespective of their liquor service. 14.Two services have been proposed to be included in the negative list: a) Vocational Services b) Testing activities on agricultural products. 15. Amnesty on service tax compliance from 1.10.2007 has been proposed. Here, waiver of interest and penalty on tax shall be given to those who comply within the stipulated time period. 16. Abatement rate decreased from 75 % to 70 % on luxury homes with value of over Rs. 1 crore or carpet area exceeding 2000. Sq. feet.

Team B A S & Co.

CA Arun Patodia. CA Sumeet Kumar Singhania. CA Sunita Patodia. CA Namita Singhania. CA Vikas Jalan. CA Kusum Jalan. CA Ankur Agarwal. CA Neha Agarwal. CA Bhawana Jain. CA Taral Pravin Badani. CS Anita Sharma.