Union Budget 2013-14

Union Budget 2013-14

Finance Minister P. Chidambaram has presented a conventional Budget. He has not touched the income tax slabs, and has abstained from major tax concessions. Given below are the key highlights of the Union Budget 2013-14:

Highlights of the Budget 2013

Macro Statements India faces challenge of getting back to its potential growth rate of 8 per cent Only China and Indonesia growing faster than India Plan expenditure pegged at Rs. 555,322 crore Non-plan expenditure pegged at Rs. 11,09,975 crore for 2013-14 Revised estimate for total expenditure is Rs. 14.3 trillion in 2012/13, which is 96 percent of budget estimate India's greater worry is the current account deficit - will need more than $75 billion this year and next year to fund deficit Food inflation is worrying, will take all steps to augment supply side 3000 km of road projects to be awarded in the first six months Refinancing capacity of SIDBI increased to Rs. 10,000 crore from Rs. 5,000 crore for MSMEs Household sector must be incentivised to save in financial instruments rather than gold Allocation to defence spending up 4.5 per cent at Rs. 2.03 trillion National Institute for Sports to train coaches to be set up at Patiala at a cost of Rs. 250 crore Clean drinking water and sanitation to get Rs. 15,260 crore Rs. 1,400 crore to set up water purification plants to fight fluoride affected areas Proposal to set up India's first women's bank as a PSU bank; initial capital to be Rs. 1,000 crore SIDBI's refinancing capacity increased to Rs. 10,000 crore PSU banks to get Rs. 14,000 capital infusion in FY14 2 new ports to be set up in West Bengal and Andhra Pradesh KYC of banks will be sufficient to acquire insurance policies, banks to act as brokers FY13 fiscal deficit estimated at 5.2 per cent; FY14 fiscal deficit estimated at 4.8 per cent Rs. 6,275 crore allocated to Ministry of Science and Technology; Rs. 5,880 crore to Department of Atomic Energy All cities with population of more than 1 lakh to be covered with FM radio services 11 lakh beneficiaries have received benefit under Direct Benefit Transfer scheme Rs. 532 crore to make post offices part of core banking Grant of Rs. 100 crore each to AMU (Aligarh), BHU (Varanasi) and TISS (Guwahati) and INTACH. By 2025 India can be a $5 trillion economy.

Policy Proposals Tax Administration Reforms Commission to be set up to review tax laws Oil and gas policy will be reviewed and changed from a profit-sharing structure to a revenue sharing structure Natural gas pricing policy will be reviewed NELP projects that were stalled will be cleared A PPP policy framework is being devised with Coal India as a partner to provide coal to power producers. The Coal Ministry is working on it. A proposal to amend the SEBI Act to strengthen the regulator is under consideration Cabinet committee on investment set up to monitor stalled projects and guide decision making The Insurance Law Amendment Bill and the PFRDA Bill are before the House, hope it gets passed in this session FIIs can participate in Exchange Traded Currency Derivatives Nirbhaya fund set up with an allocation of Rs. 1,000 crore set up to ensure safety and security of women 10 per cent stake or less will be treated as FII, and stake of more than 10 to be treated as FDI Insurance companies can open branches in Tier II cities without prior approval of IRDA Company investing Rs. 100 crore or more between now and 2015 will be entitled to deduct an investment allowance of 15 per cent in addition to depreciation Government has decided to constitute a regulator for the road sector Government committed to food security bill. Rs. 10,000 crore set apart for expenditure likely under the Act

Tax Proposals Surcharge of 10% on persons whose taxable income exceeds Rs. 1 crore The current slabs were introduced last year. Hence, there is no case of revision, says Chidambaram Rs. 5,87,082 crore to be transferred to states under share of taxes and non-plan grants in 2013-14 Person taking a loan for his first home during the period 2013-14 will be entitled to an additional deduction of Rs. 1 lakh Surcharge of 10% on persons whose taxable income exceeds Rs. 1 crore TDS of 1 per cent on land deals over Rs. 50 lakh Excise duty on certain SUVs hiked to 30 per cent Specific excise duty on cigarettes increased by 18 per cent On mobile phones priced at more than Rs. 2000, excise duty hiked to 6 per cent Excise rate, service tax rate unchanged Non tax benefits to SME units to remain for 3 years after they outgrow from the category Import duty on rice bran oilcake withdrawn No change in basic customs duty rate of ten per cent and service tax rate of 12 per cent Direct Taxes Code (DTC) bill to be introduced in current Parliament session: FM No change in peak rate of customs duty for non-agriculture products Modified GAAR norms to be introduced from April 1, 2016 Commodities transaction tax levied on non-agriculture Commodities futures contracts at 0.01 per cent This Article has been Posted By CA Kamal Choudhary. He can be reached at Kamal.Choudhary@makemytrip.com To Download Budget Highlights Click here

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Service Tax Notification 01/2013-ST dt. 22-02-2013

MOST AWAITED SERVICE TAX RETURN FORM (FORM ST -3) RELEASED:

Central Government vide Notification No. 01/2013-ST dated 22.02.2013 has released the most awaited form for filing of Service Tax Return for the period July, 2012 to September, 2012. For new form of Service Tax Return. Government has also inserted proviso in Rule 7(2) of Service Tax Rules, 1994 to provide 25th March, 2013 as last date for filing of Service Tax Return for the period July, 2012 to September, 2012.

Please click on the link below to read the Notification:
http://servicetax.gov.in/st-notfns-home.htm

This Article has been Posted By CA Kamal Choudhary. He can be reached at Kamal.Choudhary@makemytrip.com

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IPCC May 2013 RTP

GROUP I

OBJECTIVE & APPROACH

PAPER - 1 : ACCOUNTING

PAPER – 2 : BUSINESS LAWS, ETHICS AND COMMUNICATION

PAPER – 3 : COST ACCOUNTING AND FINANCIAL MANAGEMENT

PAPER – 4 : TAXATION

INSTITUTE'S PUBLICATIONS/ PRONOUNCEMENTS

GROUP II

OBJECTIVE & APPROACH

PAPER – 5 : ADVANCED ACCOUNTING

PAPER – 6 : AUDITING AND ASSURANCE

PAPER – 7 : INFORMATION TECHNOLOGY AND STRATEGIC MANAGEMENT

INSTITUTE'S PUBLICATIONS/ PRONOUNCEMENTS

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Vacancy In One of the Big Four in Audit:
-Job Location: Gurgaon
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-Strong Communication Skills
-Strong Statutory Audit Skillls Required
-Salary: AS per the Industry Standard

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Revised passing requirements for Common Proficiency Test (CPT) effective from June, 2013

		Announcement				20th  February, 2013
Revised passing requirements for Common Proficiency Test (CPT) effective from June, 2013

“A candidate for the Common Proficiency Test shall ordinarily be declared to have passed the test if he obtains at one sitting a minimum of thirty per cent marks in each section and a minimum of fifty per cent marks in the aggregate of all the sections, subject to the principle of negative marking, in such manner as may be determined by the Council, from time to time.”

¼ (one fourth) mark shall continue to be deducted for each wrong answer and multiple darkened circles for a question will also be treated as wrong answer.

Accordingly, the minimum marks required in each section and in the aggregate in all sections of CPT as per the revised passing requirements will be as under:-

Section	Subject		Maximum Marks	Minimum Marks
				(Mandatorily to be secured after negative marking)
A	Fundamentals	of	60	18
	Accounting
B	Mercantile Laws		40	12
C	General		50	15
	Economics
D	Quantitative		50	15
	Aptitude
	Total		200	100*

*A candidate is required to secure a minimum of 30 per cent marks in each Section and a minimum of 50 per cent marks in aggregate in all the four Sections to pass the Common Proficiency Test.

In other words, it is clarified that if a candidate secures a minimum of 50 per cent marks in the aggregate but fails to secure the minimum marks required in any one or more of the sections A, B, C or D (as mentioned above), his result will be FAIL. Similarly, if a candidate secures a minimum of 30 per cent marks in each section but fails to secure 50 per cent marks in the aggregate of all sections, his result will be FAIL. The following table will further illustrate the revised passing requirements :-

				M A R K S  S E C U R E D     #
		Section A		Section B		Section C		Section D
	Cand-	Fundamentals		Mercantile		General		Quantitative		Total
		of Accounting		Laws		Economics		Aptitude				Result
	idate
		Marks	Maximum	Marks	Maximum	Marks	Maximum	Marks	Maximum	Marks	Maximum
		obtained	Marks	obtained	Marks	obtained	Marks	obtained	Marks	obtained	Marks
1.	A	55	60	25	40	28	50	17	50	125	200	PASS
2.	B	36	60	20	40	15	50	29	50	100	200	PASS
3.	C	47	60	25	40	23	50	10	50	105	200	FAIL
4.	D	30	60	22	40	25	50	15	50	92	200	FAIL
5.	E	17	60	20	40	15	50	10	50	62	200	FAIL

# Marks secured are after negative marking, if any, for wrong answers/multiple darkened answers for a question/s.

Complete text of the said Notification is hosted on www.icai.org under the link “Notifications” on home page.

EXAMINATION DEPARTMENT

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