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 *******
Recommended
