Offshore Accounting and Taxation Services Private Limited Budget 2012-13: Important Changes specifically applicable to Corporates and

its employees (Direct taxes)

1. Threshold exemption limit raised from Rs. 1.80 lacs to 2.00 lacs and for Senior Citizen (Age above 60 years) from Rs. 2.40 lacs to 2.50 lacs. No change in corporate income tax rates. 10% slabs will start from basic exemption limit to Rs. 5 lacs, 20% will start from Rs. 5 lacs to 10 lacs and 30% will be applicable for income above Rs. 10 lacs. 2. Surcharge of 5% on domestic companies is unchanged (If the total income exceeds Rs. 1 Cr.) Further the existing surcharge of 2% on foreign companies is also unchanged. 3. MAT provisions is also made applicable to all persons other than companies w.e.f. 1st April 2012 (AY 2013-14) Rate of tax basic 18.5% plus 3% cess and surcharge of 5% if income above Rs. 1 crore. 4. Deduction under section 80TTA in respect of interest on deposits in savings accounts to the extent of Rs. 10,000/- applicable to individuals and HUFs. (Interest income from banking company, co-operative society and post office). 5. Deduction under section 80D Includes expenditure on preventive health check up Amount shall not exceed Rs. 5,000 (Health checkup of self, spouse, dependent children and parents). Overall limit of deduction under this section remains Rs. 15,000. 6. Deduction u/s. 80C LIC premium exemption Premium paid on insurance policy issued on or after 1st April 2012 shall be available only, if the premium payable does not exceed 10% of actual capital sum assured. 7. Due date for furnishing Tax Audit Report by assesses who have undertaken international transactions is 30th November of the assessment year. 8. TDS applicable on remuneration or fee or commission by whatever name called (other than what is already covered by section 192) to a director of a company under section 194J. (Effective from 1st July 2012). 9. Fees and penalty for delay in furnishing TDS / TCS statement and penalty for incorrect information in TDS / TCS statement : Fees of Rs. 200 per day shall be levied u/s. 234E for the period of delay Penalty ranging from Rs. 10,000 to Rs. 100,000 shall be levied for nonfurnishing or incorrect filing of TDS / TCS statements within the prescribed time u/s. 271H.

Budget 2012-13: Important Changes specifically applicable to Corporate (Service taxes)

1. Service tax rates have been changed from present 10% to 12% (Effective rate will be now 12.36%) 2. Composition rate for works contract would be now 4.944% (4.8% plus 3% cess) 3. Basic exemption limit of Rs. 10 lacs, means aggregate value of taxable services charged or required to be charged during the financial year. Exempt services will not be included in the definition of aggregate value. 4. Tax by both mechanism: Special provisions for tax to be paid by both are being incorporated for the first time i.e. service providers and receivers both have to pay tax in the following cases : Renting or hiring of motor vehicles, to the extent of 60% by service receiver ad balance by provider in case of abatement otherwise 100% by receiver. Applicable only if provider is Proprietor/PF/LLP/AOP and receiver is company. Manpower supply, to the extent of 75% by receiver and balance by provider. Applicable only if provider is Proprietor/PF/LLP/AOP and receiver is company. Works contract, to the extent of 50% by each. Applicable only if provider is Proprietor/PF/LLP/AOP and receiver is company.

Budget 2012-13: Important Changes specifically applicable to Corporate (Excise duty)

1. Basic excise duty changed from present 10% to 12%.