Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ACCOUNTING STANDARD :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: form 3cd :: VAT RATES :: cpt :: TDS :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: empanelment :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
Indirect Tax »
 Indirect taxes collection could fall short of target due to GST
 Indirect Tax Collection Under Gst Goes Down By 30 Percent
 What is a belated income tax return and what are its consequences
 Why rejig of financial year could upset your tax planning
 The threat of harsh penalty should not impede tax compliance
 What are the tax exemption limits for allowances, reimbursements paid to employees? Find out
 High-income taxpayers to get priority treatment and extra facilities
 GST input tax credit rules: How taxpayers will benefit from ITC
 More complications in filing income tax returns
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018
 CBDT asks Income Tax officials to pull their socks up as revenue collection not satisfactory

With more bills to pay, Jaitley may settle for token corporate tax cut
November, 25th 2015

Companies will have to wait a while for a significant tax rate reduction as all indications are of Finance Minister Arun Jaitley making only a token one per cent cut in fiscal 2016-17.

With payouts looming on account of the Seventh Pay Commission and One Rank One Pension, the muted disinvestment mop-up, and the government deciding not to cut public spending, the Finance Minister will have to make sure that the country’s finances do not get stressed.

“As part of the initial discussions with the industry on elimination of tax exemptions, the Finance Ministry had indicated that it could lower the corporate tax rate to 29 per cent next fiscal. This would also reflect its intent to actually bring down the tax incidence rather than just phase out exemptions,” said a person familiar with the development.

However, the Ministry is weighing the option of leaving the corporate tax rate unchanged or opt for a small cut in the next fiscal and assess the revenue implication of the withdrawal of the exemptions. A final decision is likely to be taken when the government moves closer making Budget 2016-17.

Retaining the corporate tax rate would also help create a buffer against the impact of the implementation of the Seventh Pay Commission reward that is estimated to cost at least ?1 lakh crore in 2016-17, the official added. Corporate tax collection amounted to ?1,82,635 crore in the first six months of this fiscal against the Budget target of ?4,70,628 crore as gross corporate tax receipts.

Jaitley had announced in this year’s Budget that the corporate tax rate would be reduced to 25 per cent from the prevailing 30 per cent over four years. Even if he makes a miniscule reduction, it would still be the first cut in over a decade. The last cut came in 2005-06 when the then Finance Minister, P Chidambaram, lowered the corporate tax rate to 30 per cent from 35 per cent.

“The improved indirect tax collections along with stable macro-economic parameters allow the Finance Minister to commence the promised lowering of the corporate rate from April 2016 itself possibly with a one percentage point cut in the rate to set the ball rolling. Deeper cuts could happen in 2017 and 2018 when the tax exemptions are eased out,” said Gokul Chaudhri, Leader, Direct Tax, BMR & Associates LLP.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Wholesale Silver Jewelry

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