Clear selectic
۲۴
14.Which of the following
companies has to pay corporation
tax
Answers
ANSWER + EXPLANATION :
Definition: Corporation tax is a tax imposed on the net income of the company.
Description: Companies, both private and public which are registered in India under the Companies Act 1956, are liable to pay corporate tax. For the assessment year 2014-15, domestic companies are taxed at the rate of 30%.
In addition to that, surcharge at the rate of 5% is levied if net income is in the range of Rs 1 crore to Rs 10 crore. If the net income exceeds Rs 10 cr, surcharge at the rate of 10% is levied. Education cess of 3% is levied on the sum of income tax and surcharge irrespective of the level of net income.
In the case of foreign companies, royalty or fees received by them in a predefined time-frame are subject to tax at the rate of 50%. Other income or the balance is taxed at the rate of 40%. Surcharge at the rate of 2% is levied if the net income is in the range of Rs 1 cr to Rs 10 cr. If the net income exceeds Rs 10 cr, the surcharge is increased to 5%.
Education cess of 3% is levied on the sum of income tax and surcharge irrespective of the level of net income. Marginal relief is given to both domestic and foreign companies in the case of net income exceeding Rs 1 cr and Rs 10 cr.
Also See: Direct Tax, Indirect Tax, Securities Transaction Tax
Core Inflation
Core Inflation is a measure which excludes transitory or temporary price volatility as in the case of some commodities such as food ...
PREV DEFINITIONCountervailing Duties
Duties that are imposed in order to counter the negative impact of import subsidies to protect domestic producers are called counter...
NEXT DEFINITION
Related Defintions
Service Tax
Service tax is a tax levied by the government on service providers on certain service transactions,
Direct Tax
Direct tax is a type of tax where the incidence and impact of taxation fall on the same entity. Des
Sovereign Risk
A nation is a sovereign entity. Any risk arising on chances of a government failing to make debt rep
Fiscal Deficit
The difference between total revenue and total expenditure of the government is termed as fiscal def
Bullish Trend
: A 'trend' in financial markets can be defined as a direction in which the market moves. 'Bullish T
Non-tax Revenue
Non-Tax Revenue is the recurring income earned by the government from sources other than taxes.
Union Excise Duty
Union excise duty is a type of indirect tax on goods manufactured in India. Description: Union e
Capital Market
: Capital market is a market where buyers and sellers engage in trade of financial securities like b
Poverty Trap
: Poverty trap is a spiraling mechanism which forces people to remain poor. It is so binding in itse
Subsidy
Subsidy is a transfer of money from the government to an entity. It leads to a fall in the price of
Corporate Tax Planning
Rising profits of an enterprise means higher liabilities of tax. In such a situation, it is important that they dedicate enough time on tax planning that reduces liabilities. With a tax plan, both direct tax and indirect tax is lessened at the time of inflation.