28 November 2012
Section 115JB deals with the provisions of Minimum Tax which a company has to pay. . In spite of the fact that the company is making profits, declaring dividends, still not becomes liable to pay tax due to various tax concessions and incentives. . Such a company is required to pay minimum tax @ 18.5% of its book profit (which is computed in accordance with the provisions of Companies Act, and after making certain adjustment as per Income Tax Act). . In future credit is available against such tax when company becomes liable to pay tax at regular rates.
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