Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: empanelment :: Central Excise rule to resale the machines to a new company :: form 3cd :: cpt :: TDS :: VAT RATES :: articles on VAT and GST in India :: VAT Audit :: due date for vat payment
 
 
News Headlines »
 Income tax returns (ITR) filing guide: 10 excellent tax-saving options other than Section 80C to save money
 TDS Rate Chart for AY 2018-19
 Last date to submit third installment of advance tax is December 15
 5 tax-saving funds that have given stellar returns in the past 5 years
 Find out which ITR Form is suitable for you
  Pr CIT vs. Baisetty Revathi (Andhra Pradesh High Court)
 What is income tax?
 Refund procedure initiated under GST
 Income tax returns (ITR) filing: How to get capital gains tax benefits on assets in own name
 7 avenues to help you save tax under Section 80C of Income Tax Act
 How to make income tax law less taxing

Govt may cut corporate tax rate to 26% as collections rise
December, 14th 2007

The comfort provided by the robust growth in tax collections this fiscal may well prompt the government to weigh the option of pruning corporate tax rates something that India Inc has been asking for a long time. With direct tax collections growing at well over 40% this fiscal, largely thanks to good corporate earnings and increased compliance, the government is evaluating a proposal to actually reduce corporate tax rates, according to revenue department officials.

One option is to slash the statutory rate which is now 30% to close to 26%, while retaining the surcharge and education cess. Indias corporate tax rate now works out to 33.66%, after factoring in a surcharge of 10% and the education cess of 2% on top of the statutory rate. Reducing the statutory rate would imply a lower tax payout even if the surcharge and cess are retained.

It is clear, however, that a decision on reducing tax rate will hinge on the elimination of a host of exemptions which Indian companies now enjoy and an acceptance by the government that tax compliance has indeed improved. The government and the finance minister, in particular, have been of the view that although the statutory rate is 30%, the effective rate for companies works out to just a tad over 19%, after taking these exemptions into account.

Therefore, any cut in rates would have to go hand-in-hand with the elimination of these exemptions, the revenue department has argued. A cut in rates, if any, could also depend on the realignment of rates in personal income tax rates. Political developments, at the national level, could also have a bearing on the decision.

Prospects of an early poll next year ahead of the full term of the UPA government may well influence the decision to prune tax rates. For the government, there is a cushion this time in the form of buoyant tax revenues, if it opts for rate cuts. Direct collections grew 43% in April-November this fiscal.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Portal Design Website Design Portal Designing Website Designing Web Design Professional Portal Design Professional Website Design Professional Web Design Portal Design India Website Design India Portal Designing India Website Designing India Web Design India Professional Portal Design India Professional Website Design India Chicago Professional Web Design New York Professional Web Design California Website Design Florida Website Design New Jersey Website Design Britain UK Website Design London Manchester Website Design

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