+91-8694849494 / info@oditorz.com         Earn a Free Filing         We are Hiring         Log-In
Oditorz
  • Income Tax
    • Salaried Return
    • Business Returns
    • Form 15 CA/CB
    • DS and TCS Return Filing
  • Goods And Service Tax
    • GST Registration
    • GST Return Filing
    • GST Annual Return Filing
    • GST Letter of Undertaking
  • Registrations
    • Trade Registration (Shop Act License)
    • MSME Registration
    • Provident Fund Registration
    • ESIC Registration
    • Profession Tax Registration
    • FSSAI Registration
    • Trademark/Copyrights Registration
    • Digital Signature (DSC)
  • Company/Firm law
    • Proprietorship Concern
    • One Person Company Formation
    • Limited Liability Partnership Formation
    • Private Limited Company Formation
    • Partnership Firm Registration
    • ROC Filing and Other Compliances
  • F & A Services
    • Accounting and Book-keeping
    • Internal Audit and Risk Advisory
    • Loans And Funding
    • Subsidy And Grants
    • Labour Law Compliances
    • Tax Planning Advisory
    • Credit Rating
  • Blogs
Oditorz
  • Income Tax
    • Salaried Return
    • Business Returns
    • Form 15 CA/CB
    • DS and TCS Return Filing
  • Goods And Service Tax
    • GST Registration
    • GST Return Filing
    • GST Annual Return Filing
    • GST Letter of Undertaking
  • Registrations
    • Trade Registration (Shop Act License)
    • MSME Registration
    • Provident Fund Registration
    • ESIC Registration
    • Profession Tax Registration
    • FSSAI Registration
    • Trademark/Copyrights Registration
    • Digital Signature (DSC)
  • Company/Firm law
    • Proprietorship Concern
    • One Person Company Formation
    • Limited Liability Partnership Formation
    • Private Limited Company Formation
    • Partnership Firm Registration
    • ROC Filing and Other Compliances
  • F & A Services
    • Accounting and Book-keeping
    • Internal Audit and Risk Advisory
    • Loans And Funding
    • Subsidy And Grants
    • Labour Law Compliances
    • Tax Planning Advisory
    • Credit Rating
  • Blogs
Home Income Tax New Income Tax Rate for manufacturing companies @ 17.01%
Back Home

New Income Tax Rate for manufacturing companies @ 17.01%

byadmin inIncome Tax posted onApril 6, 2020
0
0
New Income Tax Rate for manufacturing companies @ 17.01%

To boost manufacturing in India and to promote SMEs, Government took this initiative of reduced tax rate for manufacturing Company.

Let me give you a complete understanding of to whom it is applicable, how and when. Read the complete article to not miss a single update and a deep understanding.

To whom it is applicable:

A domestic company formed and registered in India after October 1, 2019.

From when it is applicable:

Reduced tax rate is applicable from FY 2019-20 for companies incorporated after Oct 1, 2019 and has started its manufacturing operations on or before March 31, 2023.

Effective tax liability would be 17.16% (Base tax rate 15% plus surcharge 10% plus cess 4%)

The Company has to exercise the reduced tax rate option before filing return of that year. Please note that once the option is exercised, it cannot be changed later for that financial year.

Criteria to be considered

It should be a newly formed company which means that it should not be formed by splitting or reconstructing any existing business.

Plant and machinery should be new. It should not use any machinery which is used before for any other purpose. However, it can use a machinery which is used outside India. Indian machinery can also be used is the value of Plant and machinery does not exceed 20% of total cost of machinery.

It cannot use any of the following premises:

  • Building earlier used as hotels which can be 3star, 4-star, 5 star
  • Halls used for conducting seminars and workshops

Tax exemptions which cannot be claimed if you go for the reduced tax rate

  • Set off and carry forward loss of the earlier period not allowed
  • Deduction under Chapter VIA not allowed
  • Depreciation u/s 32 not allowed
  • Amount paid towards scientific research cannot be claimed
  • Any capital expenditure payment made for specified business
  • Few deductions cannot be claimed for tea, coffee and rubber company.
  • Other deductions like agricultural, site restoration etc. cannot be claimed.

Note: Minimum Alternate tax would not applicable to such companies which is a good benefit given by government.

Conclusion: The new tax rate is really beneficial for those manufacturing companies who do not have any of the exemptions mentioned above. If you are small manufacturing company like plastic, boxes etc. and there are no special deductions to be claimed, you can always go for reduced tax rate of 17.16%. Please plan the taxes as per both the provisions i.e normal tax rate of 25% for companies and the new tax rate and check what is beneficial for your company. Once the option is exercised it cannot be changed for that financial year.

 3,581 total views,  1 views today

17.01%Income Tax Ratemanufacturing companiesNew Income Tax Rate
Share:

Previous

TAX BENEFITS FOR THE EMPLOYEES

Next

Income Tax Fast Refund Processing In this Pandemic Covid-19 upto Rs. 5 lakhs

Related Posts

Income Tax Fast Refund Processing In this Pandemic Covid-19 upto Rs. 5 lakhs
April 8, 2020
Income Tax Fast Refund Processing In this Pandemic Covid-19 upto Rs. 5 lakhs
No Comments
Section 194N T.D.S on cash withdrawal above Rs. 20 lakhs.
April 11, 2020
Section 194N T.D.S on cash withdrawal above Rs. 20 lakhs.
No Comments
Section 194J T.D.S on Fees for Professional or Technical Services
April 11, 2020
Section 194J T.D.S on Fees for Professional or Technical Services
No Comments

Leave a Comment Cancel reply

Your email address will not be published. Required fields are marked *

Recent Posts

  • (no title)
  • Relief for PPF, Sukanya Samriddhi Yojana account holders! Deposit, withdrawal changes for COVID-19 announced
  • Summary of Relief Package recently announced by Indian Government
  • Extension in date of submission of LFAR (Long Form Audit Report) by one month
  • The amended EPFO (Amendment) scheme, 2020 has come into force from March 28 2020 to Fight Covid 19.

Recent Comments

  • full hd tek parça izle on
  • full hd tek parça izle on
  • hd film izle on
  • film izle on
  • full hd tek parça izle on

Categories

  • Blog (1)
  • Finance (2)
  • Income Tax (4)
  • Investments (3)
  • News (7)
  • Uncategorized (2)

Our Services

  • Income Tax
  • Goods And Service Tax
  • Registrations
  • Company/Firm law
  • F & A Services
  • Blogs

    Contacts

    Mon-Fri: 9:00 AM – 6:00 PM

    +91-8694849494

    info@oditorz.com

    About Us

    • Terms & Conditions
    • Privacy Policy
    • Contact Us
    • Earn a Free Filing

    Oditorz

    We help you file your taxes.
    Wish you Happy Tax Filing

     

    Copyright © 2020 Oditorz. All Rights Reserved.

    If you opt in above we use this information send related content, discounts and other special offers.

    WhatsApp us