Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« General »
Open DEMAT Account in 24 hrs
 How to calculate income tax on stock market gains along with your salary?
 Moonlighting for Additional Income? Know Its Tax Implications
 Have you claimed education cess? Be prepared to pay tax as per the new rules
 Reserve Bank - Integrated Ombudsman Scheme, 2021 (RBIOS, 2021)
 How is tax computed for selling a house?
 How much tax do you pay on equity investments?
 Fuel taxes: Centre s gains striking since FY16
 Tax rules for NRIs on sale of assets located in India
 ITR filing: Know tax rules that apply to freelancers in India
 Delhi Real Estate News: NDMC extends last date for property tax payment with amnesty scheme
 Citizens must file THESE ITR related forms before due date Income Tax Returns

Assocham asks Finmin to reduce corporate tax to 25%
December, 29th 2010

Industry chamber Assocham asked the Finance Ministry to reduce corporate tax to 25 per cent from the existing rate of 30 per cent so that India Inc is left with more money to make big-ticket investments.

"Assocham has recommended reduction in the corporate tax from 30 to 25 per cent. This will result in generating more surpluses in the hands of companies, with the consequential impact on investments and growth," the chamber said in a pre-Budget memorandum to Finance Minister Pranab Mukherjee.

The chamber said a liberalised taxation regime has been a long-pending demand of the corporate sector.

It said reduction of the corporate tax rate to 25 per cent would bring the tax regime in the country at par with that of developed Western nations and make the country's corporate sector more competitive globally.

"... To be a competitive and attractive investment destination, our tax rates must be in tune with others. The trend world over has thus been to gradually bring down corporate tax rates. Especially in the recent years, global average corporate tax rate has come to around 25 per cent," Assocham said.

It also termed Minimum Alternate Tax (MAT) "redundant" and called for its abolition.

In the same vein, the chamber also said that if MAT cannot be abolished, the rate should be reduced from close to 20 per cent at present to 15 per cent.

MAT is a tax levied on profit-making companies that do not fall under the tax net because of exemptions. With various exemptions phased out over the years, Assocham said MAT has become redundant.

"Assocham has suggested abolition of MAT, or alternatively, restricting it to a maximum 15 per cent as against 19.93 per cent, or be levied only on book profits," it said.

The chamber said that if at all MAT is to be levied, it should be imposed on book profits.

"The book profits can be reduced by the amount of profits redeployed for new investments/new business or transferred to specified reserves. If the same is redeployed for business expansion, this would help the industry redeploy the profits and contribute to the growth of the economy," it said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting