Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: empanelment :: TDS :: VAT RATES :: VAT Audit :: form 3cd
 
 
General »
 Top House tax writer suggests measures to mitigate the impact of the border tax
 Consumer goods distributors, wholesalers to bear the brunt of GST
 GST classification woes to continue
 There will be no tax on farm or agriculture income
 RBI, Income Tax Acts to be amended for electoral bonds, Jaitley says
  Clarifications on the Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016
 I-T zeroes in on Mumbai trader in first crackdown after demonetisation
  Tax queries answered by Dilip Lakhani, Senior Chartered Accountant
 Income Tax Department Failed To Unearth Black Money Despite Information
 Govt filing twice as many cases as private cos in Supreme Court
 Taxes under GST 'to increase a bit', says CBEC Chairman

Company tax gets 30 times costlier in Chennai
October, 30th 2012

Doing business in the city just got costlier. Corporation of Chennai on Monday hiked company tax by 30 times.

Company tax levied by the corporation based on an establishment's paid up capital (for companies headquartered in the city) or profit (firms with branches here) was last revised in 1993. Officials said the rate was outdated and too low.

Private limited companies with a paid-up capital of 50 lakh and more registered with the Registrar of Companies and headquartered in Chennai will have to pay the civic body 30,000 every six months, or 60,000 every year. This is a massive hike from the 1,000 that commercial establishments were paying every six months since 1993.

The civic body has so far identified 34,260 companies that will have to pay the tax.

"Earlier there was no tax slab for firms with paid-up capital of 50 lakh and more. There was a blanket slab for all companies with a capital of 10 lakh and more, so even multinational companies paid only 2,000 a year for a civic body licence," a corporation revenue officer said.

"Because of the low revenues from taxes, many initiatives and welfare projects faced a fund crunch," a corporation official said. Civic body officials said the value of the rupee had fallen by around 300% since the early '90s, when the tax was last revised and companies' revenues had increased exponentially in the period.

Corporation officials argued the new rates were fair and only large, profitable companies will feel the pinch. The 1993 tax slabs were for paid-up capital of 1 lakh, 2 lakh and so on, till 10 lakh and more. Firms had to pay anywhere between 100 and 1,000 as company tax.

"Under the new slabs, any company with paid-up capital of less than 1,00,000 will have to pay 1,000 every six months," said the official.

Companies not based or headquartered in the city, but have only a branch or outlet will be taxed based on income. These companies will also pay a higher rate. "Earlier there was a blanket slab for companies earning 20,000 and more. They had to pay 1,000. A company not headquartered in Chennai will now have to pay 2,000 for an income of 20 lakh and 500 for every extra lakh in profits. ," the official said. "Any company will feel the pinch of paying 60,000. The magnitude of the hike is too large," said Rafeeque Ahamed, chairman of Tamil Nadu State Council, FICCI.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions