Service tax audit authority limited: audits now require specified reasons and formal statutory power before third party account examinations.
The Delhi High Court held Rule 5A ultra vires and confined the power to initiate service tax audits to the statute, requiring the Commissioner to have reasons to believe specified conditions-misdeclaration of taxable value, irregular or fraudulent credit utilisation, or dispersed operations-before directing a chartered or cost accountant to audit an assessee's accounts; routine, unexplained demands for voluminous records or self-prescribed annexures do not satisfy these statutory preconditions. (AI Summary)

Capital gains taxation changes: FII transactions and reinvestment rules redefined, affecting asset classification and deduction eligibility.
Union Budget 2014 revises Income-tax provisions: it treats advance forfeiture as income from other sources, restricts the residential property reinvestment exemption to one property and caps Section 54EC deductions, treats FII securities dealings as capital gains, extends holding periods for non-equity mutual fund units, denies depreciation as application of income for registered trusts, excludes CSR spending from business deductions, amends Section 40(a)(ia) scope and limits, expands survey and information-call powers, and replaces accounting standards terminology with Income Computation and Disclosure Standards. (AI Summary)

Service tax scope expanded to new services including radio taxis and online ads, with tightened Cenvat credit and valuation rules.
Union Budget 2014 expands service tax scope by revising exemptions, withdrawing the exemption for renting immovable property to educational institutions, taxing specified advertising and transport services, and clarifying exemptions for certain goods carriage and tour operator services. Cenvat Credit rules change: motor cab services are separated and allowed credit, tour operators may claim input service credit, a six-month time limit for taking credit from invoice date is introduced, and re-credit rules for export proceeds are provided. Procedural changes include assessment time limits, reverse charge adjustments, mandatory electronic deposit, valuation rationalisation for works contracts, point of taxation changes, and revised interest rates for delays. (AI Summary)

Resolution filing obligations: prescribed corporate resolutions must be filed timely in Form MGT-14 to avoid enhanced fees and penalties.
Specified corporate resolutions and agreements prescribed under section 117, including special resolutions and board approvals for major corporate actions, must be filed in Form MGT-14 within statutory timelines; delayed filing attracts enhanced fees under the registration office fee rules and exposes the company and officers in default to prescribed monetary penalties. The requirement applies to all companies and covers a broad list of matters such as disposals of undertakings, borrowings beyond capital and reserves, issue of securities, buybacks, investments, guarantees, approval of financial statements, mergers, acquisitions, voluntary winding up and certain board decisions on senior appointments and auditors. (AI Summary)