Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Corporate tax rate for new domestic companies

sandeep yadav (Article Student) (45 Points)

23 February 2017

Clarification required regarding the corporate tax rate for newly established domestic companies(not a manufacturing company) for Ay 2018-19. As far as i know clarification is still awaited from finance ministry. Do let me know you views on this.

Reply
Follow
Share

2 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (166227 Points)
Replied 26 February 2017

PROPOSED as follows: (AY 2018-19)

Domestic Company - Turnover upto Rs. 50 crores

Income Tax : 25% of taxable income.

Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge

At the rate of 7% of such income tax, provided that the taxable income exceeds Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.
At the rate of 12% of such income tax, provided that the taxable income exceeds Rs. 10 crores. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 10 crores by more than the amount of increase in taxable income.

Education Cess : 3% of the total of Income Tax and Surcharge.

Domestic Company - Turnover exceeding Rs. 50 crores

Income Tax : 30% of taxable income.

Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge

At the rate of 7% of such income tax, provided that the taxable income exceeds Rs. 1 crore.
At the rate of 12% of such income tax, provided that the taxable income exceeds Rs. 10 crores.

Education Cess : 3% of the total of Income Tax and Surcharge.

Upgrade to CAclubindia Pro. Subscribe Now!

sandeep yadav (Article Student) (45 Points)
Replied 28 February 2017

Thanks Sir, but my question is corporate tax for domestic companies which is established in Fy2017-18 (not a manufacturing company). You have given the answer for domestic companies which is already established and whose turnover for the year 2015-16 should be less than 50 Cr to get tax advantage.