4 . |
Central Sales Tax ( Interstate |
Spotlight
Rate is 2 on % Indian or local Electronics Value Added 2016 Tax | rate 01
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applicable in the State from where |
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goods are sold within India |
2 . |
Entry Tax / Octroi ( If applicable ) |
Certain states impose entry tax / octroi in specific goods |
Certain states impose entry tax / octroi in specific goods |
3 . |
Property Tax |
Property tax / real estate tax is payable as per local municipal laws on commercial and residential property owned . |
Property tax / real estate tax is payable as per local municipal laws on commercial and residential property |
4 . |
Profession Tax |
Certain states in India levy a profession tax on employees |
Certain states in India levy a profession tax on employees |
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Most of the indirect taxes are cenvatable that is it available |
( www . itatonline . org / info /? dl _ id = 1215 ) |
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for set-off |
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The government of India has notified safe harbor rules in |
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The exact rate of import duty can be calculated from the |
case of transfer pricing the detailed rules can be seen from |
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calculator available at the following link- |
the following link- |
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( https :// www . icegate . gov . in / Webappl /) |
( http :// law . incometaxindia . gov . in / DIT / File _ opener . aspx ? pa |
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The basic rate of duty for project imports is 7.5 % |
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Direct taxes : Direct taxes are of following types :
Corporate tax ( Taxes on net income ), minimum alternate tax ( in case company gets exemption on corporate tax ), tax on royalty / fee for technical services , dividend distribution tax , withholding tax , withholding tax on interest etc .
Carry forward of losses are allowed for 8 years and companies are allowed to have depreciation and amortization allowances .
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Minimum Alternate Tax : Indian tax law requires MAT to be paid by corporations on the basis of profits disclosed in their financial statements in cases where the tax payable according to the regular tax provisions is less than 18.5 % of their book profits
( plus surcharge and education cess ). However tax credit ( in case MAT paid is more than tax payable as per normal
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Transfer Pricing : Any international transaction between two or |
provisions of the ACT ) is allowed to be carried forward for 10 |
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more associated enterprise must be at arm ’ s length price . |
years . |
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India also has advance pricing arrangements option which |
Withholding Tax : Businesses need to withhold tax on specified |
help in avoiding into entering into any dispute with tax |
payments viz salary , contractual , brokerage , commission , |
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authorities . |
professional fee etc . |
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The FAQ on APA ’ s can be seen from the following link- |
3 . |
Tax on distributed profits |
Rate is 16.99 % -on distribution of |
dividends by the Indian company |
4 . |
Wealth Tax |
A company is liable to pay tax on certain |
assets such as motor car , etc in excess |
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of INR 3 million in India @ 1 % |