A compendium of periodical compliances under various legislations, taxation rates applicable in FY 2012-13 and a glance of the previous year's corporate updates.

1. THE COMPLIANCE
GALAXY
2012-13
INSIDE THE ISSUE:
› Compliance calendar……………….02
› Rate chart……………………………07
› Corporate updates at a glance……..13

2. The Compliance Galaxy
2012-13
COMPLIANCE CALENDAR
A Compliance Calendar assists a business entity to plan the payment and submission of various reports,
certificates, returns, information, documents before the due date rings the door bell. Hence, following is the list
of monthly, quarterly, half-yearly and yearly compliances applicable to various business entities which would
assist an organization in timely compliances under various legislations:
MONTHLY COMPLIANCES
DUE
LEGISLATION NATURE OF COMPLIANCE
DATE
Payment for the previous month (For Corporate Dealers)
Service Tax
(If payment is made through cheque)
5th
Payment for the previous month (In case of Non SSI Dealer)
Central Excise Act 1944
(If payment is made through cheque)
Payment for the previous month (For Corporate Dealers)
Service Tax
(If payment is made otherwise than through cheque)
6th
Payment for the previous month (For Corporate Dealers)
Central Excise Act
(If payment is made otherwise than through cheque)
Income Tax Act, 1961 Payment of TDS/TCS for the previous month
VAT/CST Payment for the month of March
VAT/CST Filing of return for the month of March
7th ECB Filing of return for reporting of actual transactions of ECB
Monthly Return on Capital Market Exposure to be submitted by
RBI Guidelines
NBFCs-D
Monthly Return on Important Financial Parameters of NBFCs not
RBI Guidelines accepting/holding public deposits and having asset size of Rs.100
crore and above to be submitted by NBFC-ND-SI
Filing of return for the previous month
Excise
(In case of Non SSI Dealer)
APTPTCE Act Payment & Filing for the previous month (By Employer)
10th
APLW Act Payment of contribution for the previous month
A Statement of short term dynamic liquidity to be submitted by
RBI Guidelines
NBFC-ND-SI
VAT Payment for the previous month (If payment is made through cheque)
15th
CST Payment for the previous month (If payment is made through cheque)
VAT- Andhra Pradesh Value Added Tax Act 2005
CST- Central Sales Tax, 1956
SSI- Small Scale Industry
ECB- External Commercial Borrowing
NBFCs - Non-Banking Financial Companies
NBFCs-D- Deposit taking NBFCs
NBFCs-ND- Non-Deposit taking NBFCs.
NBFCs-ND-SI- NBFCs not accepting/holding public deposits and having asset sizes of Rs.100 crore and above
APTPTCE Act – Andhra Pradesh Tax on Professions, Trade, Callings and Employment Act 1987
APLW Act - AP Labour Welfare Act, 1970 Page 2 of 20

3. The Compliance Galaxy
2012-13
The AP Entertainment Payment & Filing of return for the previous month
Tax 1939 (Amusement & Recreation)
Payment & Filing of return for the previous month
Entry Tax Act 2001
(Non registered dealers)
AP Tax on Luxuries Act
Payment & Filing of return for the previous month
1987
15th
Payment of contribution for the previous month
EPF
Filing of Declaration for employees joined during the previous month
Employees State
Insurance Act 1948 Filing of Declaration for employees joined during the previous month
(ESIC)
Payment for the previous month
VAT (If payment is made otherwise than through cheque)
Filing of return for the previous month
20th CST Filing of Return for the previous month
The AP Entertainment
Payment & Filing of return for the previous month (Others)
Tax 1939
Payment & Filing of return for the previous month
Entry Tax Act 2001
(Registered Dealers)
ESIC Payment of contribution for the previous month
21st
VAT Payment of Works Contract Tax (TDS) for the previous month
Filing of Consolidated Statement of dues
Filing of return for employees qualifying for the first time under the
25th EPF act
Filing of return for employees resigned from the organization
Filing of nomination form for new joinees
30th EE (CNV) Act Filing of notification of vacancies
QUARTERLY COMPLIANCES
DUE DATE LEGISLATION NATURE OF COMPLIANCE
Payment for the previous month (For Corporate Dealers)
Service Tax
(If payment is made through cheque)
05th of July, Oct, Jan
Payment for the previous month (For Corporate Dealers)
Central Excise Act
(If payment is made through cheque)
Payment for the previous month (For Corporate Dealers)
Service Tax
(If payment is made otherwise than through cheque)
06th of July, Oct, Jan
Payment for the previous month (For Corporate Dealers)
(If payment is made otherwise than through cheque)
Central Excise Act
10th of July, Oct, Jan &
Filing of return for the previous quarter
April
EE (CNV) Act - Employment Exchange (Compulsory Notifications of Vacancies) Act 1959
TDS- Tax deducted at source
TCS - Tax collected at Source
EPF- Employees Provident Fund and Misc. Provisions Act 1952
Page 3 of 20

4. The Compliance Galaxy
2012-13
10th of July, Oct, Jan &
APSE Act Filing of return for the previous quarter
April
15th of July, Oct, Jan Filing of TDS/TCS return for the previous quarter
I-T Act
15th of May Filing of TDS/TCS return for the quarter ended March
15th of July, Oct, Jan &
EE (CNV) Act Filing of return for the previous quarter
April
15th of June, Sept, Dec
I-T Act Payment of Installment of Advance Tax
& March
Payment of Turnover Tax & Filing of return for the
VAT
30th of July, Oct, Jan & previous quarter
April Filing of C-Form details and utilized way bill details for
VAT/CST
the previous quarter
Filing of Annual Financial Information Statement for the
30th of Nov Central Excise Act
previous Financial year
31st of March Service Tax Payment for the previous month (For Corporate Dealers)
NBFC APD Submission of Quarterly Return by NBFCs-D
Submission of Quarterly Statement of Capital Funds, Risk
NBFCs PN (RB) D
Assets etc by NBFCs-D
15th of April, July, Oct, Submission of Quarterly Return on Statutory Liquid
RBI Act
Jan Assets by NBFCs-D
Submission of Quarterly Return on repayment of deposits
RBI Act
by rejected companies holding public deposit
Submission of Quarterly Return of Capital Funds, Risk
RBI Act
Asset Ratio by NBFCs-ND-SI
Payment for the previous quarter
31st of March Central Excise Act
(For SSI Registered Dealers)
Quarterly return to be submitted by non-deposit taking
30th of April, July, Oct,
RBI Guidelines NBFCs with asset size of Rs 50 crore and above but less
Jan
than Rs 100 crore
Within 15 days of end of Submission of Compliance Report on Corporate
Listing agreement
quarter Governance
Within 21 days of end of Submission of Share holding Pattern to the Stock
Listing agreement
quarter Exchange
SEBI (Depositories
& Participants)
Regulations, 1996 &
30th of July, Oct, Jan, Submission of Reconciliation of Share Capital Audit
SEBI Circular No.
April Report
D&CC/FITTC/Cir-
16/2002 dated
31.12.02
Before the end of quarter Listing agreement Holding of Audit Committee Meeting
Before the end of quarter Companies Act Holding Board Meeting
Within 48 hours of Board Publication of quarterly results in newspapers
Listing agreement
meeting (English & Vernacular Language)
NBFC APD - Non-Banking Financial Companies Acceptance of Public Deposits (Reserve Bank) Directions, 1999
NBFCs PN (RB) D - Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998
APSE Act - AP Shops & Establishments Act 1988
I-T Act- Income Tax Act 1961
Page 4 of 20

5. The Compliance Galaxy
2012-13
Within 45 Days of the Limited Review Report from the Statutory Auditors
Listing Agreement
end of Quarter (in case of submission of Unaudited last quarter results)
HALF YEARLY COMPLIANCES
DUE DATE LEGISLATION NATURE OF COMPLIANCE
12th of May & Nov ESIC Filing of return for the previous Half year ended
15th of July Factories Act, 1948 Filing of Half yearly return
25th of Oct & April Service Tax Filing of return for the previous Half year ended
Submission of Statement of structural to be submitted by
20th April/ 20th Oct RBI Guidelines
NBFC-ND-SI
Submission of Statement of Interest Rate Sensitivity to be
20th April/ 20th Oct RBI Guidelines
submitted by NBFC-ND-SI
Submission of Asset-Liability Management (ALM) Return
30th April/ 30th Oct RBI Guidelines to be submitted by NBFCs-D having public deposit of Rs
20 crore
30th of July & Jan CL Act Filing of Half yearly return
Within 1 month of end of
half year and within 24 Certificate from Practising Company Secretary (PCS)
Listing Agreement
hours after signing of under Clause 47C
PCS
ANNUAL COMPLIANCES
DUE DATE LEGISLATION NATURE OF COMPLIANCE
Filing of Annual Installed Capacity Statement for financial
Excise
year ended
30th of April Renewal of Professional Tax registration
APTPTCE Act
Filing of Annual return statement
EPF Filing of Annual Return of contribution cards
30th of June APTPTCE Act Payment of tax for Directors & Company
Filing of Annul Return on Foreign Assets & Liabilities
15th of July FEMA
under FEMA
31st of July Filing of income tax returns (In case of non audit entity)
Income Tax
Filing of Income tax returns (in case of Audit entities)
30th of Sept Annual Returns By deposit taking NBFCs
NBFC
(As required by “Non-Banking Financial Companies
FEMA – Foreign Exchange Management Act 1999
CL Act - Contract Labour (Regulation & Abolition) Act 1970
Page 5 of 20

6. The Compliance Galaxy
2012-13
Acceptance of Public Deposits (Reserve Bank) Directions,
1998”.) to be submitted by NBFCs-D
31st of Oct CL Act Application for renewal of license
30th of Nov APSE Act Renewal of registration
Payment of Bonus Act,
30th of Dec Filing of Annual return
1965
VAT Submission of Audited Trading, P & L Account
31st of Dec
APLWAct Filing of Yearly return
15th of Jan Factories Act, 1948 Filing of Annual return
Minimum Wages Act,
Filing of Annual return
1948
01st of Feb
Payment of Wages Act,
Filing of Annual return
1936
15th of Feb CL Act Filing of Annual return
Listing Agreement Annual Listing Fees
30th of April
Listing Agreement Annual Custodial fees to NSDL/CDSL
30th of June Companies Act, 1956 Return of Deposits
Within 45 days of the Intimation regarding submission of Annual audited Results
Listing Agreement
end of Quarter (if unaudited last quarter results not submitted)
Submission of Annual Audited (along with audit report) if
30th of May Listing Agreement
last quarter unaudited results not submitted
Within 2 working
SEBI (Prohibition of
days of receipt of Annual disclosures under regulation 13(6) regarding
Insider Trading)
information u/r 13(3) Details of change in shareholding
Regulations, 1992
& (4)
Within 6 months
from the close of Companies Act, 1956 Holding Annual General Meeting (AGM)
financial year
Within 30 days of Filing of Balance sheet, Profit and Loss Account and other
Companies Act, 1956
date of AGM documents
Within 60 days of
date of Annual Companies Act, 1956 Filing of Annual return
general meeting
Page 6 of 20

7. The Compliance Galaxy
2012-13
RATE CHART
RATES UNDER AP VALUE ADDED TAX
S.
Particulars Rate
No
SCHEDULE RATES
1. Schedule I 0%
2. Schedule III 1%
3. Schedule IV 5%
4. Schedule V 14.50%
5. Schedule VI Special Rates
COMPOSITION SCHEME
6. Works contract executed for State Government or Local authority 4%
7. Works contract executed for other than state Government or Local 4%
authority
8. Apartment Builders and Developers 4% on 25% of total
consideration
STANDARD DEDUCTIONS FOR WORKS CONTRACT
9. Electrical Contracts 15% to 25%
10. All structural contracts 35%
11. Installation of plant and machinery 15%
12. Fixing of marble slabs, polished granite stones 25%
and tiles (other than mosaic tiles)
13. Civil works like construction of buildings, 35%
bridges roads etc
14. Design, fabrication and installation of centralized Air-conditioning 5%
plant, Air Handling units, Refrigeration plants and any other Heating,
Ventilating and Air Conditioning Systems.
15. 15%
Fixing of sanitary fittings for plumbing, drainage and the like
16. Painting and polishing 25%
17. Laying of pipes 25%
18. Tyre re-treading 40%
19. Dyeing and printing of textiles 40%
20. Printing & Supplying of printed material 40%
21. All other contracts 30%
TDS ON WORKS CONTRACT TAX
22. All categories of contracts not falling in sub-clauses (ii) 4% of 70% of total
consideration
23. Contracts for laying or repairing or roads and contracts for canal 2% of 70% of the amount
digging, lining and repairing.
Page 7 of 20

8. The Compliance Galaxy
2012-13
AP TURNOVER TAX RATE
Particulars Rate
On total sale value 1%
CENTRAL SALES TAX RATES
Particulars Rate
2% (or) the state level VAT rate,
On Gross value of Inter-state sales transaction
whichever is lower
AP PROFESSIONAL TAX RATES
Category Range Rate (Rs.)
Directors -- 2500/- P.A.
Estate Agents or Brokers -- 550/- P.M.
Companies -- 2500/- P.A.
Partners -- 500/- P.A.
Occupiers of Factories -- 1000/- P.A
Sub-brokers recognized by the Stock -- 1000/- P.A.
Exchange Board of India
Property Developers including Land -- 2500/- P.A.
Developers and Building / Flat
Developers
Owners of Residential hotels and -- 2500/- P.A.
lodging houses having > 20 rooms
Individuals or institutions conducting -- 2500/- P.A.
Chit funds
Chartered Accountants >2 and < 5 years in profession 500/- P.A.
> 5 years in profession 2500/- P.A.
Salary & wage earners Range 5001 to 6000 60/- P.M.
Range 6001 to 10000 80/- P.M.
Range 10001 to 15000 100/- P.M.
Range 15001 to 20000 150/- P.M.
Above 20000 200/- P.M.
Contractors Class I 2500/- P.A.
Class II 1500/- P.A.
Class III 500/- P.A.
Other Contractors Work executed < 10lacs 500/- P.A.
Work executed > 10lacs 1500/- P.A.
Employers Under AP Shops & Employees >1 and < 5 110/- P.A.
Establishment Act
Employees >5 and < 10 400/- P.A.
Employees >10 and < 20 1000/- P.A.
Page 8 of 20

9. The Compliance Galaxy
2012-13
Employees > 20 2500/- P.A.
Co-operative Societies State level Society 2500/- P.A.
Co-Operative Sugar Factories, Spinning 2500/- P.A.
Mills, Banks
District level Society 330/- P.A.
Mandal level Society 220/- P.A
Village level Society 150/- P.A
Persons other than the above 750/- P.A
SERVICE TAX RATES
Particulars Rate on the gross value
of services rendered
Registered dealers under service tax 12%
Nature of taxable service Abatement Rate
Mandap keeper Service 60%
Tour Operator Service in relation to package tour 75%
Tour Operator Service (booking of accommodation) 90%
Tour Operator Service (other than above two mentioned) 60%
Renting of Cab 60%
Renting of hotels, inn, guest houses clubs others 40%
Supply of food or any other article of human consumption at Convention service, 30%
hotels, clubs, pandal, shamiana or any other place specially arranged for
organizing function
Services involved in supply of food or any other article of human consumption or 70%
any drink restaurant at (which has licence to service alcoholic beverages)
Services involved in supply of food or any other article of human consumption or 40%
any drink as outdoor catering service
Chit Service 70%
Business Auxiliary Service 30%
Erection Commission & installation service 67%
GTA 75%
Financial leasing service 90%
Pandal & Shamiana 30%
Construction of complex
When land value is included 75%
When land value is not included 67%
Transport of goods by rail 70%
Transport of passengers by rail 30%
Aircraft operator 40%
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10. The Compliance Galaxy
2012-13
Nature of taxable service Optional scheme
Insurer 3% of the premium charged in the first year and 1.5% in
subsequent years
Foreign Exchange 0.12% of the gross amount of currency exchanged for an amount upto rupees
100,000, subject to the minimum amount of Rupees 30; and
Rupees 120 and 0.06 per cent. of the gross amount of currency exchanged for
an amount of Rupees exceeding 100,000 and upto rupees 10,00,000; and
Rupees 660 and 0.12 per cent. of the gross amount of currency exchanged for
an amount of rupees exceeding 10,00,000, subject to maximum amount of
rupees 6000:
Composition rate 4.80%
CENTRAL EXCISE DUTY
Particulars Rate
Basic Duty Proposed in Budget 2012 12 %
LUXURY TAX
Particulars Rate
Luxuries provided by Hotels
Charges below Rs. 300/- Per day per person Nil
Charges above Rs. 300/- Per day per person 5%
Luxuries provided by Corporate Hospitals
Charges below Rs. 500/- Per day per person Nil
Charges above Rs. 500/- Per day per person 10%
Tobacco Products
Chewing Tobacco preparations commonly known as Khara, Masala, 50 paise in every rupee
Kimam, Dokta, Zarda, Sukha and Surti.
Cigarettes 05 paise in every rupee
INCOME TAX RATES
FY 2011-12 Rate FY 2012-13 Rate
Upto1,80,000 (Individuals, HUF, Nil Upto 2,00,000 (Individuals, HUF, Nil
AOP, BOI, AJP) AOP, BOI, AJP)
Up to 1,90,000 (for women) Nil Up to 2,00,000 (for women) Nil
Up to 2,50,000 (for resident Nil Up to 2,50,000 (for resident Nil
individual of 60 years or above) individual of 60 years or above)
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11. The Compliance Galaxy
2012-13
Up to 5 Lacs (senior citizens > Nil Up to 5 Lacs (senior citizens > Nil
80years) 80years)
1,80,001 – 5,00,000 10% 2,00,001 – 5,00,000 10%
5,00,001 – 8,00,000 20% 5,00,001 – 10,00,000 20%
8,00,001 upwards 30% 10,00,001 upwards 30%
ENTERTAINMENT TAX
Particulars Rate
A/C and Air Cooled Theatres 20%
Other Theatres 18%
SURCHARGE RATE
Particulars Rate
On domestic companies (Total Income > 1 Crocre) 5%
On other than domestic companies (Total Income > 1 Crocre) 2%
EDUCATION CESS
Particulars Rate
Education cess on income tax 2%
Secondary & Higher education cess on income tax 1%
PROVIDENT FUND CONTRIBUTION
Particulars Rate
Employers contribution to Provident Fund 3.67%
Employers contribution to Pension Fund 8.33%
Employers contribution to EDLI 0.5%
Employers contribution towards the Administrative charges for Provident Fund 1.10%
Employers contribution towards the Administrative charges for EDLI 0.01%
Employee contribution 12%
ESI CONTRIBUTION
Particulars Rate
Employers contribution 4.75%
Employee contribution 1.25%
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12. The Compliance Galaxy
2012-13
TDS RATES
Nature of Payment Section Code Individual Others
/HUF
Salary 192 Avg Rate Avg Rate
Interest on Securities 193 10% 10%
Deemed Dividend 194 10% 10%
Interest other than Interest on securities (By 194A 10% 10%
bank & others)
Winning from Lotteries & Puzzles 194B 30% 30%
Winning from Horse Race 194BB 30% 30%
Payment to Contractors 194C(1) 1% 2%
Payment to Adverting/Sub contractors 194C(2) 1% 2%
Insurance Commission 194D 10% 10%
Payment out of deposits under NSS 194EE 20% -
Repurchase of Units by MF/UTI 194F 20% 20%
Commission on sale of Lottery tickets 194G 10% 10%
Commission & Brokerage 194H 10% 10%
Rent – Land & Building 194I 10% 10%
Rent – Plant & Machinery 194I 2% 2%
Professional Fee & Technical Services, Royalty 194J 10% 10%
& non compete fee
Remuneration to Directors (Proposed in 194J 10% 10%
Budget 2012)
Compensation on acquisition of immovable 194LA 10% 10%
property
TCS RATES
Nature of Goods Rate %
Alcoholic liquor for human consumption 1%
Tendu Leaves 5%
Timber obtained from forest lease 2.5%
Timber obtained from any mode other than forest lease 2.5%
Any other forest produce not being timber or tendu leaves 2.5%
Scrap 1%
Parking lot 2%
Toll plaza 2%
Mining & Quarrying 2%
Cash transaction in bullion and Jewellery (Proposed in Budget 2012) 1%
Sale of Coal, Lignite and Iron ore 1%
Page 12 of 20

13. The Compliance Galaxy
2012-13
CORPORATE UPDATES AT A GLANCE
(FY 2011-12)
MCA
› Schedule VI to the Companies Act, 1956 revised – Revised schedule VI applicable to all the companies
uniformly for the financial statements to be prepared for the financial year ended 31st March, 2012 onwards
› DIN procedure simplified - DIN application is to be made online pre-certified by a professional through e-
form DIN1 and no physical submission of documents shall be required
› Payment of Commission to Non-Whole time Directors of the company under section 309(4)(b) of the
Companies Act, 1956 shall not require approval of the Central Government
› Payment of fees through Electronic Mode made mandatory - payments of value upto Rs. 50,000, shall be
made only in electronic mode. For the payments of value above Rs. 50,000, stakeholders would have the
option to either make the payment in electronic mode, or paper challan
› Delegation of Power Central Government to Regional Directors and Registrar of Companies for
incorporation of Section 25 companies to reduce the time
› Limits Enhanced from Rs.50,000/- to Rs. 2,50,000/- for obtaining approval of the Central Government for
payment of remuneration to office or place of profit
› Limits Enhanced from Rs. 24 lacs P.A to Rs. 60lacs P.A for Disclosure of Particulars of Employees Under
Section 217(2A) of Companies Act, 1956
› Green Initiatives in Corporate Sector - Company would have complied with Section 53 of the Companies
Act, if the service of document has been made through electronic mode instead of Under Posting certificate
(UPC)
› Appointment of Cost Auditor by Companies reviewed - Appointment of cost auditor needs to be first
considered by the Audit Committee and upon the recommendation of the audit committee Board can make
the appointment of Cost Auditor
› Informing PAN through DIN - Directors who have not furnished their PAN earlier at the time of obtaining
DIN are required to furnish their PAN by filing e-form DIN-4
› Word “partnership” in ICAI, ICWAI, ICSI Acts include LLPs - The words “partnership” wherever
occurring in the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959 and the
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14. The Compliance Galaxy
2012-13
Company Secretaries Act, 1980 shall mutatis mutandis be construed as including those Limited Liability
Partnerships
› Green Initiatives in the Corporate Governance:
 Issue of Certificates by RoC by Digital Signature
 Ministry allows holding shareholders' meetings through video conferencing
 Participation by Directors in Board / Committee Meetings through video conferencing
 Approval of appointment of agency for providing electronic platform for e-voting under Companies
Act, 1956
› Filing of event based forms not to be accepted until Annual forms/returns are filed - No e-filing shall be
accepted by the RoC from Directors of defaulting companies for any other company also until updated
Balance Sheet and Profit & Loss Accounts and Annual Return are filed with the Registrar of Companies
› Settlement of prosecutions cases through Lok Adalats – MCA organized Lok Adalats for swift disposal of
pending prosecution cases against companies/directors
› Fast Track Exit mode for defunct companies - Companies inoperative since incorporation or commenced
business but became inoperative/defunct later on may apply for getting their names strike off from the RoC
› Payment of MCA 21 Fees via NEFT - NEFT payment option will eliminate inconveniences caused due to
payment processing delays
› Synchronization of DPIN with DIN – MCA has decided to issue only one identification number to an
individual for both the purpose DIN & DPIN
› Waiver of approval of Central Government for payment of remuneration to professional managerial person
by companies having no profits or inadequate profits
› Simplified Procedure for amalgamation of Government Companies U/s 396 of the Companies Act, 1956 -
Every Central Government Company which is applying to the Central Government for amalgamation with
any other Government Company or Companies shall obtain approval of the Cabinet i.e. Union Council of
Ministers
› The Companies (Passing of the resolution by Postal Ballot) Rules, 2011 provides for voting by electronic
mode - voting by shareholders may be carried on in electronic mode
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15. The Compliance Galaxy
2012-13
RBI/FEMA
› Central Registry, a public database, established to prevent frauds in loan cases involving multiple lending
from different banks on the same immovable property
› FII investment limit in listed non-convertible debentures / bonds, with a residual maturity of five years and
above, and issued by Indian companies in the infrastructure sector enhanced from USD 5 billion to USD
25 billion
› With a view to liberalising the import procedure limit for requirement of furnishing bank guarantee
increased from USD 100,000 to USD 200,000 or its equivalent
› To provide operational flexibility and ease the procedure for FDI related transactions, RBI has decided to
permit AD to open and maintain, without its prior approval non-interest bearing Escrow accounts in
Indian Rupees in India on behalf of residents and / or non-residents, to facilitate FDI transactions
› Pledge of shares of an Indian company held by non-resident investor/s in favour of AD Category - I banks
allowed
› Bank loans to all MFIs, including NBFCs working as MFIs on or after April 1, 2011, will be eligible for
classification as priority sector loans
› With a view to providing more operational flexibility to Indian corporates having investments abroad, it
has been decided to further liberalise / rationalise as following:
a. Only 50 per cent of the amount of the performance guarantees to be reckoned for the purpose of
computing financial commitment to its JV/WOS overseas;
b. Indian promoters who have set up WOS abroad or have at least 51% stake in an overseas JV, may
write off capital (equity / preference shares) or other receivables and management fees in respect of
the JV/WOS;
c. Listed Indian promoter companies with net worth of less than Rs.100 crore and investment in an
overseas JV/WOS not exceeding USD 10 million allowed for disinvestment under the Automatic
Route;
d. Issue of guarantee by an Indian party to step down subsidiary of JV/WOS now under general
permission
› The issuance of equity, preference shares under the government route of the foreign direct investment
scheme permitted for some categories
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16. The Compliance Galaxy
2012-13
› Designated AD Category-I banks to approve the request from the ECB borrowers with respect to change in
the recognized lender
› Enhancement of ECB limit under the automatic route to USD 750 million or equivalent per financial year
› Transfer of shares between resident and non-resident investors allowed under the foreign direct investment
route without its prior permission with certain exceptions
› Based on the recommendations of the Malegam Committee Report a new Category of NBFCs-‘Non
Banking Financial Company-Micro Finance Institutions’(NBFC-MFIs) introduced
› Powers for Compounding of Contraventions under FEMA, 1999 delegated to regional offices
› Restrictions under Section 20 of the Banking Regulation Act, 1949 would apply to grant of loans and
advances to spouse and minor/dependent children of the Directors of banks as well
› Revised procedure for Reporting of Software Exports introduced for those software exporters whose annual
turnover is excess of Rs. 1,000 Crores or who submits at least 600 Softex Forms annually
› Limit for foreign exchange remittance towards imports without any documentation formalities, enhanced
from USD 500 or its equivalent to USD 5000 or its equivalent
INCOME TAX
› Government proposes to issue biometric PAN card to the asssessee
› Firm or individual/HUF covered under section 44AB are mandatorily required to file ITR-5 or ITR-4
electronically using digital signature
› Prior permission from the income tax authorities needed for creating a charge
COMMERCIAL TAX
› Due date for payment & filing o f Professional Tax Return has been revised to 10th of every month
› VAT @ 20% has been imposed on certail tobbaco products
› VAT rate for schedule IV products been increased to 5% from the existing 4%
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17. The Compliance Galaxy
2012-13
› Agents selling agricultural produce on behalf of agricultural principals are been exempted from VAT
Registration
› Interest for delay in payment of vat amount has been increased to 1.25% from the existing rate of 1%
› The marginal Textile dealers with an annual taxable turnover of above Rupees 5 Lakhs and below Rupees
40 Lakhs will be subjected to levy of tax at the rate of only 1%
› Textile and sugar are exempted from tax under CST Act vide GO. MS. 2328 and is still in force
› Dealers who are engaged in integrated activity of Printing & Supplying of printed materials may have an
option to pay tax by way of composition @ 4% on 60% of total value of such supplies received and
receivable
› Input tax credit for the dealers paying VAT under Section 4 (7)(a) of AP VAT Act has reduced to 75%
SERVICE TAX
› Club or association service provided by a registered cooperative society has been exempted from service tax
› With effect from 01.04.2012 service tax will need to be charged at 12.36%
› Limits under the alternate payment option given to foreign exchange service proverders has been enhanced
› Abatement of 60% has been granted to aircraft operator for rendering service to passengers on domestic
and international journey
› The composition rate of service tax on works contract has been amended to 4.80% from the existing 4%
› 34 new services has been introduced and enlisted under service tax exemption category
› Notification has been passed in regard to certain category of service where both service receiver and service
provider are made liable for the payment of service tax.
› Medical services in terms of sub-clause (zzzzo) of section 65(105) has been exempted from service tax
› Exemption has been granted to the taxable service as referred to in sub-clause (zzzzw) of clause (105) of
section 65 of the said Act, when the declared tariff for providing of such accommodation is less than
rupees 1000 per day from the whole of the service tax leviable thereon under section 66 of the said Act.
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EXCISE
› E-Filing of excise returns has been made mandatory from 01.10.2011
› Products such as uniforms or made-up articles like quilt, blankets, towels, linen etc. bearing the name or
logo of a school, security agency, company, hotel or airline etc would not merit treatment as “branded”
products
CUSTOMS
› Custom officials may permit Re-export of goods and DEPB Credit tcrip for goods imported under DEPB
credit to the exporters
› OSPCA (On Site Post Clearance Audit) will be initiated in respect of ACP - Accredited Client Programme
› CBEC imposed definitive anti-dumping duty on the imports of Coumarin originating in, or exported from,
the People’s Republic of China which are imported into India
SEBI
› With a view to enhance information available in the public domain on performance of asset pools on which
securitized debt instruments are issued, it has been decided to put in place a Listing Agreement for
securitized debt instruments
› ASBA (Applications Supported by Blocked Amount) facility mandatory for all non-retail investors (HNIs
and institutional investors) investing in public and rights issues
› Methodology of calculating the Annual Issuers charges changed. The annual issuers’ charges would be
based on the average no. of folios (ISIN positions) during the previous financial year instead of the total
number of folios (ISIN positions) as on 31st March of the previous financial year
› SEBI to allow investors eligible for differential pricing to make the payment of discounted price at the time
of bidding itself, subject to compliance of appropriate disclosure and other norms
› Mutual Funds/AMCs have been advised to invariably provide an option to the investors to to hold units in
demat form
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19. The Compliance Galaxy
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› Guidelines for change of name of listed companies liberalized. New rules facilitates change of name even if
amount invested in the new activity/project (Fixed Assets + Advances + Works in Progress) is at least 50%
of the assets of the company
› New Centralized web based complaints redress system ‘SCORES’ (SEBI Complaints Redress System)
launched for speedy processing of investor complaints
› Stock Exchanges may consider granting membership to LLPs subject to LLP complying with the
conditions laid down in Rule 8(4A) of the SCRR
› SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 notified in place of erstwhile
takeover code for enhanced governance of the securities as well as capital market
› Amendments to the Equity, IDR and SME Equity Listing Agreements:
a. Listed entities shall also submit the last quarter results along with the audited annual results
b. Submission of unaudited results shall be accompanied by the limited review report of the auditors
c. Soft copies of full annual reports to be sent all those shareholders who have registered their email
addresses for the purpose
› Merchant bankers to disclose the track record of the performance of the public issues managed by them
› BSE and NSE (Stock exchanges) mandated to provide a separate window, i.e. apart from the existing
trading system for the normal market segment, to facilitate promoters of listed companies (which are
required to comply with minimum public shareholding requirements) to dilute/offload their holding in
listed companies in a transparent manner with wider participation
› To kick start the stock exchange for small and medium enterprises (SMEs), the capital market decided to
standardize the lot size lot size for initial public offer (IPO) proposing to list on SME exchange.
………….
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20. The Compliance Galaxy
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DISCLAIMER
The above information is only indicative and solely for informational purpose and private circulation. RANJ & Associates, Company
Secretaries intend to, but do not guarantee or promise that it is correct, complete / up-to-date. We expressly disclaim any liability to
any person in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the
contents of this document. The information in this document is as of April 01, 2012.
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