GROUP 2GROUP MEMBERS• ABHISHEK (120401)• ANKITHA (120404)• AMEEN (120419)• SHAHBAZ (120427)• SWETHA (120433)• LAMA (120443)

TOPIC

ASSESMENT OF COMPANIES

MEANING OF COMPANY

TAX TREATMENT OF FOREIGN COMPANY IN INDIA

• Income arising from a business connection in India, which is reasonably attributable to operations carried out by foreign company in India;• Income arising from any property in India;• Income arising from any asset or source of income in India; or• Income arising from transfer of a capital asset situated in India;• Royalty payable from India;• Fees for technical services payable from India, etc.

Income from special sources

(i) Interest 20%

(ii) Dividend on which DDT has not been paid in India 20%

(iii) Royalty/Fees for technical services 20%

(iv) Income by way of winnings from lottery, races, games, etc. 30%

Balance income Income from ordinary sources� 30%

Income from special sources

Tax treatment for Indian company

Company with total income exceeding INR 10

million

Company with total income less

than INR 10 million

Domestic

Company

32.445% (30% basic rate plus surcharge of 5%

plus education cess of 3%)

30.9% (30% direct tax plus

education cess of 3%)

Foreign

Company

42.024% (40% plus surcharge of 2.5% and

education cess of 3%)

41.2% (40% plus and education

cess of 3%)

FORMAT OF COMPUTATION OF TOTAL INCOMEOF COMPANIES FOR THE ASSESMENT YEAR_______Particulars RS RS

Net profit as per profit and loss account ******

ADD: Disallowed expenses which are debited to profit and loss accountWealth tax ***

Excise duty ***

Income tax *****

Any provisions ****

Any loses ***

Proposed dividends ***

Interim dividend ****

Donation paid ****

Fines and penalties ***

Any personnel expenditure **** ********

Particulars RS RS

Less: Allowed expense which are not debited to profit and loss account ******

Insufficient depreciation

Any business expense ***

Bad debts ***

Income tax *****

Any provisions **** *****

******

Less: Disallowed income which are credited to profit and loss account ***

Income from house property ****

Income from capital gain ****

Income from other source *** *****

******

Add: Allowed income which are not credited to profit and loss account ********

Discount received *****

Commission received *****

Any business income *****

Taxable income ***** ******

TAXABLE INCOME OF COMPANY *******/-

Format of computation of tax liability of companies for the assessment year _____PARTICULARS RS RS

Tax on LTCG (20%) *****

Tax on STCG (15%) *****

Tax in casual income (30%) *****

REST (30%) *****

*****

PEC 2% *****

HEC 1% **** *****

TAX LIABILITY *******