MCCI NEWS | 1

The pre-budget Economic Survey 2012-13 painted a ‘not-so-rosy’ picture of the Indian economy. It cautioned about the danger of missing targets of GDP growth in the current year which may slip to decade’s low of around 5 p.c. against the projected 7.6 p.c. making a case for widening of tax base and cutting of subsidies. The Survey also advised against raising taxes.

Industrial production presents a mixed picture of sluggishness bottoming out as well as growth momentum continuing for a little longer period. The high productivity service sector is also not creating enough jobs. India has lost about 10 p.c. share of the

With agriculture growth rate falling short of the 4 p.c. target in last

called for reforms so that private sector is encouraged to develop

with a growth rate of 6.1 - 6.7 per cent and expects that the downturn is nearly over and the economy is going to look up.

The Budget has evoked mixed reactions from the MSME sectors as the proposed Investment Allowance at 15 p.c. of investment on plant and machinery is restricted to large enterprises only. The

etc. has not been met.

Vol. 1 | No. 5 January-February 2013

FROM THE PRESIDENT’S

DESK

Dear Members,

‘Slovenia - West Bengal Business Partnership Summit’ on 30 January 2013

at The Park, Kolkata

H. E. Radovan Zerjav, Deputy Prime Minister of Slovania addressing members

(L-R) H. E. Janez Premoze, H. E. Radovan Zerjav, S. S. Bagaria, Partha Chatterjee and Sanjay Agarwal

‘Slovenia-West Bengal Business Partnership Summit’ was held on 30 January 2013 at The Park, Kolkata.

2 | MCCI NEWS

Partha Chatterjee, MIC, Commerce & Industries addressing the summit.

Partha Chatterjee invited Slovenian investments in West Bengal especially in the areas of Renewable energy, Tourism, Infrastructure, Science & Technology, IT and Manufacturing sector – Mining in particular. Highlighting on the potential advantages of West Bengal like its strategic location, connectivity and roads network, natural resources, minerals and others, he invited Slovenia to come up for investment and economic collaboration with the State and assured that his government would offer all facilities and co-operation to them in this regard.

A Business Delegation from Slovenia led by Mr. Radovan Zerjav, Hon’ble Dy. Prime Minister & Minister of Economic Development & Technology, Republic of Slovenia and accompanied by Mr. Samo Hribar Milic, President, Chamber of Commerce & Industry of Slovenia and Mr. Janez Premoze, Ambassador of Slovenia in India, attended the Summit.

Partha Chatterjee, Hon’ble Minister of Commerce & Industries & IT, Government of West Bengal addressed the Summit as Guest of Honour. Shri S. S. Bagaria, Hony Consul of Slovenia in Kolkata and Past President, MCCI also addressed the session. H.E. Mr. Radovan Zerjav felt that West Bengal was an excellent place for doing business and Slovenia would like to focus on mining industry in West Bengal, along with other key sectors like, IT, Tourism and Hydro-electricity. He mentioned that Slovenia had already invested 400 Million Euros across various industrial sectors in India and Slovenian Businessmen have already entered into 7 Joint ventures in various industry sectors and signed MOUs with 2 companies – energy major Kolektor and auto giant Elektra.

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Arun K. Saraf, VP, MCCI presenting a Memento to Partha Chatterjee

B2B Session generated lot of interest. The Session was attended by 14 visiting Slovenian Companies and 30 Indian Counterparts & 94 B2B meetings were also held.

A B2B session in progress

The Slovenian companies comprised a cross section of sectors ranging from ‘Renewable Energy’, ’Industrial Furnace’, ‘Tourism’, ‘Media and Broadcasting’, ‘Electronics and Electrical Equipments’, ’Automotive Components’, ‘Logistics, Port and Warehousing’,’Alloys,Steel and Energy’,’Supply Chain-storage’,’Building Management Systems’right upto ‘Underground Mining Equipments’.

The Indian companies who participated included ‘Coal India Ltd (CIL)’, ‘ACMA (Automotive Components Manufacturers’ Association of India’,) ‘Shrachi Group (Bengal Tools)’, ‘Rose Valley’,‘Century Plyboards’, ‘Adhunik Corporation’, ‘Hindustan Produce’, ‘Shyam Steel’, ‘JIS Group’, ‘Electrosteel Castings’,’Ramky Group’, ‘Titagarh Wagons’, ‘Jaypee Engineering’, ‘Klystron Electronics’,‘JSIS’ and ‘CFI Holding’.

MCCI NEWS | 3

Prof. Saugata Roy (centre) addressing the members. (R-L) Deepak Jalan, Arun K Saraf and R. K. Sen.

On the issue of land acquisition, Prof. Roy mentioned that Bengal being a land-scarce state, with 2nd highest density of population after Kerala, the State government would continue with it’s hands-off policy on land acquisition for industry. He suggested that the prime focus of the govt. should be on MSMEs which require less land and provide more employment. These MSMEs should be linked to skill development and innovation which had been mentioned in his Draft Industrial Policy.

Prof. Roy pointed out that the State had 6813 MW installed power capacity and unlike Karnataka, Tamil Nadu, the power situation was very comfortable in Bengal. It is one of the few states which had no shortage of power. In this context, he opposed the idea of installation of any nuclear power plant in the state and said that the coal-rich state would continue to depend on this source for power generation in the State.

New Growth Dimensions of West Bengal 2020 on 08 January 2013

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MCCI-MLF organized a session with Brahma Kumaris World Spiritual University (BKWSU) or Prajapita Brahma Kumaris Ishwariya Vishwa Vidyalaya, a monastic, new religious movement (NRM) of Indian origin. It teaches a form of meditation called Raja Yoga, which differs from the classical Raja Yoga described by Patanjali and derives from teachings given through mediumship and spirit possession.

1. ‘Meditation’ capacitates one to be in peace and

thoughts of our life.

2. External Power --------------------- = Happiness and Peace. Inner Strength

The equation underscores the importance to possess sound inner strength which is only possible through meditation.

3. Mind, Intellect and Habits are the three elements of

Interactive Session with Spiritual Leader from Brahma Kumaris on 18 January 2013 by MCCI-Mlf

life. ‘Thoughts’ that govern human ‘emotions’ in turn are manifested into ‘actions/habit’ better known as ‘Sanskar’ in life.

‘Necessary Thought’ related to daily chores; ‘Wasteful Thoughts’-related to bitter experience or action in the past and which has no connection with the present; ‘Negative Thoughts’- harbinger of negative emotions and ‘Positive Thoughts’- which create peace.

5. The presence of Almighty should be related to all our daily actions and not restricted to Prayer Room.

6. ‘To Give and Forgive’ attitude should replace ‘ To Get and Forget’.

7. Understanding oneself is the key to attain sanctity. 8. The word woman may be expanded as ‘W-Will Power’,

‘O-Optimism’, ‘M-Mercy’, ‘E-Enthusiastic’, ‘N-Nobility’.9. Nari means ‘ Na + Ori’ – one who is without any

enemy.

Sitting (L-R)Divya Agarwal, Sister Ankita, Sister Neha, Sister Jaya & Saritaa Jalan, Chairperson, MCCI-MLF

4 | MCCI NEWS

(R-L) DeepakJjalan, Kirk McCarthy, Udayendu Dass

McCarthy mentioned that via LRS, all Resident Individuals including Minors could invest up to US $

Shares, Debt instruments of overseas listed companies, and hold immoveable Property or Foreign Currency accounts with Foreign Banks. Further, the income from such investments could be retained and reinvested. But the Scheme required the completion of a simple Form (where PAN number was required) at the time of remitting the Foreign Exchange via an Authorised Dealer.

Kirk McCarthy, Head-International Business Development, Duncan Lawrie Ltd, UK on 01 February, 2013 made a presentation on ‘Practical Tips on Investing Abroad Under Liberalised Remittances Scheme of RBI’.

Kolkata also attended the session.

(R-L) Sudesh Sonthalia, Bwalya Lyapa Nondo, M. Mwansa, Marion Bohling, Sanjay Maniar

With 6-7% consistent economic growth, Zambia Offers Investment in ‘Health, Mining Sector, Precious Stones (specially Emerald), Uranium, Solar and Hydro power’.

A Presentation on ‘Zambia Tourism’ was made by Zambia Tourism Board & Tour Operators of Zambia. Bwalya Lyapa Nondo, Actg. Deputy High Commissioner of Zambia in India, Arjun De, Hony Consul, Republic of Zambia, Mathias Mwansa, Tourism Development

Arts, Zambia; Ms. Tecla Z. Ngwenya – Managing Director, Tecla Hotel Lodge and Restaurants, Zambia, Ms. Jocelyn Namula Mutinta, Tourism Promotions Manager-Zambia Tourism Board, Mr. Marion Bohling of Destination Zambia, Sanjay Maniar, Director-Travelaid Private Ltd. were members of the Zambian Team who interacted with the members.

Navrang Saini, said that compliance rate of submission of accounts by the Companies, was highest in Kolkata at 90 % compared to other regions. As regards the notice

of the companies who have not submitted accounts. He informed that there were about 12 lacs companies of which 9 lacs were working in the country. Jinesh Vanzara observed that there was need to maximize our role for policy advocacy. He also said that some features of the Bill like One Person Company, dormant Company, reopening of book of accounts, NFRA etc. introduced in the Bill had promised investors’ democracy. Ankit Paleja elaborated on the various provisions of the New Bill. On the ‘Class Action Suits’, he felt that mandatory requirement of 100 members for initiating action is not pragmatic. Instead, it should have been a prescribed minimum percentage of share holders for such Class Action Suits.

Practical Tips on Investing Abroad under Liberalised Remittance Scheme of RBI

Presentation on ‘Zambia Tourism’ on 12 February 2013

Symposium on ‘The Companies Bill, 2012’ on 22 January 2013

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(L-R) R. K. Sen, J Vanzara, Dr. Navrang Saini, S. S. Beriwal, A. Paleja, S. Roongtaa

Symposium on ‘The Companies Bill, 2012’ organised on 22 January 2013 was addressed by Dr. Navrang Saini, Regional Director, Union Ministry of Corporate Affairs, Jinesh S. Vanzara, President of ACAE and Ankit Paleja, Sr. Associate, Crawford Bayley & Company, Mumbai. Dr.

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MCCI NEWS | 5

Direct Telecast of Post Budget reactions on ‘Union Budget 2013-14’ by Rajya Sabha TV from MCC Chamber premisesFollowing an arrangement with Rajya Sabha TV, reaction on Union Budget 2013-14 was telecast directly from the Chamber in two consecutive sessions on 28 February 2013 just after the presentation of the Union

Sanjay Agarwal, Sr.Vice President, Amitav Kothari and Anupam Shah, Past Presidents participated in the deliberations from the Chamber. Nirupam Sen, Former Industry & Commerce Minister of West Bengal and Prof. Saikat Sinha Roy, of Economics Department, Jadavpur University participated as invited speakers.

In the second session, Deepak Jalan, President, R. S. Agarwal, Jt. Chairman, Emami Group & Trustee and Past President of the Chamber and Arun Kr. Saraf, Vice president participated. Md. Salim former MP was the invited speaker. The sessions were conducted by Amritanshu Rai, Senior Asst. Editor of Rajya Sabha TV.

Viewing direct telecast of ‘Presentation of Union Budget 2013-14’ in Large Screen on 28 February 2013 and First Reaction Chamber arranged for live viewing of the presentation of Union Budget 2013-14 in large screen in the Somany Conference Hall of the Chamber. After the presentation First reaction to the Union Budget was covered by press and media.

Chamber organised the 2013 Taiwan Machinery Catalogue Exhibition (TMCE) jointly with Taiwan Association of Machinery Industry (TAMI) during 20-22 February 2013 at Fortune Hotel, Kolkata which was inaugurated by Deepak Jalan, President-MCCI. Jeff Huang, Commercial Secretary-Taipei Economic & Cultural Center in India (Taiwan Embassy in New Delhi), Chie-Yien Huang, Director-Taipei World Trade Center (TAITRA) in Kolkata and. John Chen, Director-Business Division, TAMI were present at the inaugural session.

Indian entrepreneurs visiting the Exhibition got the opportunity to view a host of Taiwan company catalogues/ product literatures at one time under one roof.

An array of about 1000 Taiwanese MachineryCatalogues from around 100 leading Companies, on Machine Tools, Food Processing Machines, Packaging Machines, Plastic Machines, Textile Machines, Shoes and Leather Machines, Wooden Machines, Machinery Parts, Mould and Dies, Sewing Machines, Valves and Parts, and

MCCI Ladies Forum organized an exclusive session on

Kedia, Founder, Maximum Effect on February 23, 2013, at MCCI Conference Hall.

other Machineries were on display, which were of great interest for the business community in the State. Specialist from TAMI was available at the exhibition venue to extend necessary assistance to the visitors.

available from Taiwan

Ms. Lata Goenka Kedia making her presentation (Standing at extreme left) before the MCCI-Mlf members.

Ms Kedia held an interactive session with questions posed by all the members and their guests. She

the appearances which matter the most since ‘Image’ of a person is based on ‘55% Visual appearance, ‘38% Non - Verbal body language’. ‘Education Level’, ‘Career Competence and Success’, ‘Over all

individual. ‘Self-Consciousness’, ‘Financial’, ‘Time’ and ‘Knowledge constraints’ impede the process of building a sound persona.

2013 Taiwan Machinery Catalogue Exhibition’ on 20-22 February 2013

on 23 February 2013

‘Union Budget Special’

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6 | MCCI NEWS

FORTHCOMING EVENTSSYMPOSIUM on ‘The Union Budget, 2013-14’ on 01 March 2013

SEMINAR on ‘Understanding Union Budget 2013-14 jointly with St. Xavier’s College (Autonomous) Kolkata at Fr. Depelchin Auditorium, St. Xavier’s College, Kolkata on 09 February 2013

INDUSTRIAL AWARENESS PROGRAMME jointly with Bureau of Indian Standards (BIS) on 07 February 2013

SEMINAR on ’Career after Plus2’ on 19 March 2013

Factory output rises 2.4% in Januaryannual income above Rs 5 lakh

Taxpayers having an annual income of over Rs 5 lakh

This is a move towards using technology so that the

minimized. The government had last year introduced the

with annual income of Rs 10 lakh and above.

Additional deduction of interest up to

home buyersIn the Union Budget 2013-14, it was proposed that the

buyers who would take the loan for an amount that does not exceed 25 lakh Rupees. There would be an additional deduction interest of 1 lakh Rupees.

Tax Administration Reforms Commission to be set up

In the Union Budget 2013-14, setting up of a Tax Administration Reforms Commission (TARC) has been proposed. The proposed commission shall be responsible for reviewing the application of tax policies and tax laws.

Commodities Transaction Tax (‘CTT’)The Finance Minister has proposed to levy CTT in a limited way, on non-agricultural commodities’ future contracts traded on recognized commodity exchanges @ 0.01% of transaction value (on same lines as for equity futures) payable by the seller only.

Detailed provisions are also proposed for collection of CTT by exchanges, its payment to government,

compliances etc.

months in January on the back of better performance on manufacturing, mining and power sectors.

The Index of Industrial Production (IIP) of 2.4 per cent in January 2013 was better than the one per cent growth seen in same month last year. Cumulative growth during last ten months is meagre 1.0 p.c. compared to 3.4 p.c. during the corresponding period of last year.

Select Economic Indicators Real Sector 2011 2011-12 2012-13

(% Change) -12 Q2 Q3 Q2 Q3

1 2 3 4 5

GDP 6.2 6.5 6.0 5.3 4.5

Agriculture 3.7 3.2 4.1 1.2 1.1

Industry 2.7 2.7 0.9 1.1 2.3

Services 7.9 8.2 8.1 7.1 6.0

Final Consumption Expenditure 8.1 16.1 9.0 2.9 4.2

Gross Fixed Capital Formation 4.4 11.1 -1.7 -1.0 6.0

MCCI NEWS | 7

TDS at the rate of 1 percent applied on the value of transfer of immovable property exceeding 50 lakh Rupees

The Union Budget 2013-14 proposed levying TDS at the rate of 1 percent on the value of the transfer of immovable property where the consideration exceeded 50 lakh Rupees. Agricultural land was exempted.

Exemption withdrawn w.e.f. 1st April 2013

dated 20.6.2012 is now reduced/restricted by

No. 3/2013 dated 1.3.2013 and same will become effective from 1.4.2013.

activities” amended to exclude the threshold exemption of Rs. 25 lakhs for charitable activities

general public utility”. (S.No.4.). Hence the above activity is now covered in tax net.

service and auxiliary educational services provided by educational institute are excluded from Negative list (S.No.9.) making it taxable.

transfer or permitting the use or enjoyment of

(S.No.15.) making other copyright services relating

condition/ Central air-heating facility in any part of the establishment at any time of the year even if they do not have license to serve liquor (S.No.19.) is now taxable.

Petroleum and petroleum products, postal mail or mail bags and household effects by rail or a vessel are excluded from list of exempt items (S. No.20) and are now taxable.

to general public is omitted from Negative list (S.No.24) making it taxable.

in respect of an aircraft to Government, a local authority or a governmental authority is excluded from Negative list (S.No.25.) and is now taxable.

IT : Expenses incurred for worshipping of Lord Shiva, Hanuman, Goddess Durga and maintenance of temple cannot be regarded to be for religious purpose for purpose of approval under section 80G(5)

Extension of Date of Submission of form St-3 for Period from 1-7-2012 to 30-9-2012

CBEC has extended the date of submission of the Form ST-3 for the period from 1st July, 2012 to 30th September, 2012, from 25th March, 2013 to 15th April, 2013. The Form ST-3 is expected to be available on ACES around 20th March, 2013.

Scope of Negative List Expanded (w.e.f. date of enactment)

The area/coverage of following items in Negative List proposed to be expanded by bringing changes in the Finance Act 1994 and same will become effective from enactment of the Finance Act 2013.

Vocational Education Course’ amended to include courses in ‘designated trades’ offered by Industrial Training Institute or Industrial Training Center

be covered by the negative list. In addition to this,

Skill Development Corporation (NSDC) is being

amounting to manufacture or production of goods” as provided in section 65B (40) amended to include processes on which duties of excise are leviable under the Medicinal and Toilet Preparations (Excise Duties) Act, 1955.

Also prescribes the location of land which shall be considered as ‘agricultural land’. Amendments are proposed to aerially measure the distance of such land from nearest municipality or cantonment board, as against the current provisions of measurement by ground. Also, to determine the population of such place, it is proposed to consider the last preceding

previous year

8 | MCCI NEWS

Q. What is the name of the scheme?

A.Compliance Encouragement Scheme 2013”.

Q. What is the period covered under this scheme?

A. This scheme covers the period beginning from the 1st October 2007 to 31st December 2012.

Q. Who is eligible to apply under this scheme?

A. Any person is eligible to declare his tax dues in respect services for which no notice or an order of determination under Section 72 or Section 73 or Section 73A of the Chapter has been issued or made before 1st March 2013.

Q. I have received a notice for service tax audit/ letter for asking records on 20th February 2013. Will I be covered under this scheme?

A. No, if a declaration has been made by a person against whom-

(a) an inquiry or investigation in respect of a service tax not levied or not paid or short-levied or short-paid has been initiated by way of —

(i) search of premises under section 82 of the Chapter;or

(ii) issuance of summons under section 14 of the Central Excise Act, 1944, as made applicable to the Chapter under section 83 thereof; or

(iii) requiring production of accounts, documents or other evidence under the Chapter or the rules made the reunder; or

(b) an audit has been initiated, and such an inquiry, investigation or audit is pending on 1st March 2013, then such a declaration is liable to be rejected.

Q. Before which authority is the declaration

A. The declaration can be made to the designated

of Assistant Commissioner of Central Excise as

the purposes of this Scheme.

Q. What is the last date of declaration?

A. The last date for declaration is on or before 31st December 2013.

Q. What is the due date for the payment of tax dues as laid under this scheme?

A. Minimum 50% of the Tax Dues should be paid on or before 31st December 2013 and balance tax Dues on or before 30th June 2014.

Q. What are the Consequences of non-payment of Tax Dues or part thereof as declared under this scheme?

A. The declarant should pay his dues on the due dates as prescribed above, failing which he shall be liable to pay the same tax dues on or before 31st December 2014, alongwith interest thereon from 1st July 2014 to 31st December 2014.

A. A declarant paying his dues under this scheme shall get immunity from penalty, interest and other proceedings.

Q. What is the format for the declaration to be made?

A. The declaration and other details regarding the scheme will be prescribed at the time of announcement/

enactment of the Finance Act, 2013.

Courtesy: Tax Talk

Published by R. K. Sen, Director General, MCC Chamber of Commerce & Industry, 15B, Hemanta Basu Sarani, Kolkata - 700 001 Tel.: 91 33 2248 1502/6329/3123, Fax: 33 91 2248 8657, Email: merchantchamber@yahoo.com, mcciorg@mcciorg.com, Website: mcciorg.com

Board of Editors : R.K. Sen, Director General, M.C. Das, Dy. Director General. Contact Person : S Roy, Asst. Director GeneralPrinted & Designed at : CDC Printers Pvt. Ltd., Tangra Industrial Estate-II, (Bengal Pottery) 45, Radhanath Chowdhury Road, Kolkata - 700 015

For Private Circulation only.

FAQ on Service Tax Voluntary Compliance Encouragement Scheme 2013 (VECS)

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