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Corporate Tax

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Corporate Tax

A corporate tax is a levy on a company's profit by the government. The money collected in the form of corporate taxes is used as a country's source of income. A company's operating income is calculated by deducting expenses, including the cost of goods sold or services procured and depreciation from revenues. Next, applicable tax rates are applied to create a legal obligation that the company owes the government.

Corporate tax is levied on the companies, whether domestic or foreign. In India, the Income Tax Act, 1961 governs the provisions of charging corporate tax to companies. Global income of the companies registered in our country is covered for taxation under this. Whereas in the case of foreign companies, only the income received or accrued in India is taxable under the corporate tax. MAG is leading corporate tax experts in Delhi.

What is a domestic company?

Any company whose business is originated in India or any foreign company whose effective management and control are entirely situated in India is the domestic company. The companies registered under the Companies Act, 1956 or Companies Act, 2013 are said to be originated in India.

What is a foreign company?

Any company that has not originated in India and whose effective control & management is situated outside India.

Helping Companies reduce Taxable Income

In the complicated domains of tax financial reporting, tax authority compliance, and tax planning – corporate tax authorities are often challenged to meet continually changing conditions.

Additional acumen and industry expertise can help to supplement existing tax department resources, and give the peace of mind needed to permit clients to address concerns affecting companies finally, now and into the future. Financial reporting scrutiny in tax areas requires a tremendous level of completeness, correctness, and internal controls.
 
MAG Corporate Tax Experts work with our clients as entrusted advisors and allies to manifest a deep-rooted knowledge of their businesses – including businesses that battle in global markets and across state and territorial jurisdictions. We drive value and build an understanding of assessing authority rules and processes that affect tax reporting, tax planning and accounting for corporate taxes.

We recognise areas of risk, giving solutions that mitigate financial statements and tax compliance disclosures. Our clients appreciate us for being the best corporate tax consultancy in Delhi and for our reliability of expertise, efficiency, performance, study to details and excellent services.

How We Deliver

Whether your company is an emerging enterprise or a large established business, our professionals will employ their corporate tax experience and resources to:

  • Assist you in meeting all tax-related filings for corporates

  • Provide you with the final analysis of financial statement related to accounting for taxes

  • Develop possibilities to reduce and defer corporate taxes

Our Corporate Tax Professional Team possesses vast experience in the field of corporate taxation that provides corporate tax services in Delhi and across India.  We implement our sound mind of what it necessitates to improve useful tax policies – with the efficiency and accuracy needed in the present volatile tax environment. We being a business tax expert in Dwarka, New Delhi use our experience to create modern solutions to our clients most complex and essential tax issues.

Our areas of expertise in corporate tax include:

  • Accounting for income taxes

  • Corporate Tax Compliance Services – Preparation and filing of tax returns

  • Corporate tax planning

  • Audit support to corporates

  • Due Diligence for corporate issues and Tax controversies

  • International tax planning for overseas Entities

If you are looking for the best corporate tax solutions firm in West Delhi, reach out to us at info@manishanilgupta.com and enjoy the finest corporate tax services from our team of experts.

Rahul Pareva

Director-International Taxation and Litigation, ACA

“Confidence Comes From Keeping The Promises You Made To Yourself.” .

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Frequently Asked Questions


Yes, it is mandatory for every company to file its return of income irrespective of amount of income or losses.
Form ITR-6 is applicable to companies. However the companies claiming exemption under section 11(charitable or religious trusts) cannot use ITR-6 form.
The following are the components of income of a company:

* Income from Business and Profession

* Income from House Property

* Income from Capital Gains

* Income from Other sources

Salary income is not earned by a company.
MAT is prescribed under Section 115JB of the Act and has been a part of the statute for decades now. The purpose of MAT is to tax companies at a MAT rate on book profit, or at the tax rate on taxable income, whichever is higher. MAT was previously at a rate of 18.5% on book profits and has now been reduced to 15% on book profits.

Under these changes to corporate tax rates, companies choosing to exercise 115BAA or 115BAB are excluded from the applicability of MAT. As such, once a company opts for either of these sections, it has a single tax rate for every future year.

Corporate tax is levied on the companies, whether domestic or foreign.

All companies, whether domestic or foreign, are subject to corporate tax in India if they earn income from business operations within the country. Domestic companies are those whose business originates in India or whose effective management and control is situated in India. Foreign companies are those that have not originated in India and whose effective control and management is situated outside India. In the case of foreign companies, only the income received or accrued in India is taxable under corporate tax. The provisions for charging corporate tax to companies in India are governed by the Income Tax Act, 1961.

A domestic company originates in India or has its effective management and control situated in India, while a foreign company has not originated in India and has its effective management and control situated outside India.

Corporate tax planning is important as it can help companies reduce their taxable income and save money on taxes. It involves analyzing a company's financial situation and implementing strategies to reduce tax liabilities while ensuring compliance with tax laws and regulations.

A domestic company is a company that has its business originated in India or any foreign company whose effective management and control are entirely situated in India.

Corporate tax planning involves developing strategies and structures to optimize a company's tax position and minimize tax liabilities, ultimately reducing the amount of taxes paid.
 
Advance Tax refers to the payment of taxes in installments throughout the financial year, based on estimated income. Companies are required to pay advance tax if their tax liability exceeds a specified threshold. 

The due dates for advance tax payments are as follows:
  1. On or before 15th June: 15% of the estimated tax liability.
  2. On or before 15th September: 45% of the estimated tax liability.
  3. On or before 15th December: 75% of the estimated tax liability.
  4. On or before 15th March: 100% of the estimated tax liability.
Yes, companies can generally carry forward their losses for a specified period to offset against future profits. The Income Tax Act provides provisions for carrying forward and set-off of losses incurred in previous years.
 
Multinational companies often have additional reporting requirements, such as transfer pricing documentation, country-by-country reporting, and disclosure of related party transactions. These requirements aim to ensure fair taxation and prevent tax avoidance.
Non-compliance with corporate tax regulations may result in penalties, fines, interest charges, and legal consequences. It is crucial for companies to meet their tax obligations, file accurate returns, and maintain proper records to ensure compliance.

 
The income  tax rate for companies in India depends on various factors such as the type of company and its turnover. The applicable tax rates are as follows:

3: Domestic Companies:
  • For companies with a turnover of up to INR 400 crore in the financial year 2020-21, the tax rate is 25%.
  • For companies with a turnover exceeding INR 400 crore, the tax rate is 30%.

4: Foreign Companies:
  • Foreign companies operating in India are generally subject to a flat tax rate of 40%.
  • In addition to the basic tax rate, there may be surcharges and cess applicable based on the company's income level.

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