Finance Minister Nirmala Sitharaman opened the liquidity tap for corporates on Friday by announcing a sharp tax cut and leaving more money in their hands for capacity expansion. The statutory tax rate for corporates has been lowered to 22 percent from 30 percent. This benefit, though, is only for companies that wish to give up their tax exemptions. Given that most tax incentives and exemptions have been phased out over the past few years, companies may prefer to forego the few they enjoy now, and opt to be taxed at the lower rate of 22 percent.
New manufacturing companies incorporated after October 1, 2019, can benefit from an even lower rate of 15 percent tax if they don’t claim the tax benefits they are eligible for. India Inc will also get relief on MAT (Minimum Alternate Tax). The Finance Minister has reduced MAT to 15 percent from 18.5 percent. This would benefit companies located in SEZ developers, infrastructure, cement companies, companies with units in specified locations in the North-East and exporters. There is also relief on buyback tax.
この記事は The Hindu Business Line の September 23, 2019 版に掲載されています。
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この記事は The Hindu Business Line の September 23, 2019 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。
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