CORPORATE TAX >>
CORPORATE TAX IS PAID BY COMPANIES, BRANCHES AND PROJECT OFFICES OF OVERSEAS COMPANIES ON PROFITS AND OTHER INCOME
RATES FOR FY 2011-2012 Company Percentage(%)
1
Foreign 40
2
Domestic 30
1 plus surcharge at 2 % for foreign companies if income exceeds INR 10,000,000
( USD 220,900 approx) and education cess of 3 % 2 plus surcharge at 5 % for domestic companies if income exceeds INR 10,000,000( USD 220,900 approx) and education cess of 3 %
CORPORATE TAX Businesses need to determine their annual tax payment and ensure deposit th
under an installment plan referred as Advance Tax by June 15( 15 %), September th th th
15( 45 %), December 15( 75 %) and March 15( 100 %).
TRANSFER PRICING Businesses having cross border dealing with related concerns fall within ambit of Indian Transfer Pricing regulations, which requires maintenance of prescribed documentation and certification by an Indian firm of chartered accountants.
DOUBLE TAXATION AVOIDANCE AGREEMENT(' DTAA ') India has a network of DTAA with over 85 countries.
WITHHOLDING TAX Businesses, including Liaison Office, need to withhold tax on specified payments viz. contractual, professional, rental, etc.
TAX AUDIT Businesses with annual turnover exceeding INR 6 million( USD 132,500 approx) need to have accounts audited under specific provisions of the Indian income tax laws and certified by an Indian firm of chartered accountants.