Ad-Free CAclubindia and daily updates on your mobile. Subscribe Now!

Company Tax

sai krishna (Student) (186 Points)

24 December 2008

Hi friends

can any one tell me about company tax and why it is paid.

Regards

Reply
Follow
Share

2 Replies

CS Mukesh Arora (Service) (85 Points)
Replied 29 December 2008

The Term in not Company Tax but the Corporate Tax.

The Corporate Tax refers to Direct Taxes in the form of Income Tax and Dividend Distribution Tax paid the Companies.

Plz. suggest, if needs any amendment.

CS Mukesh Arora

Upgrade to CAclubindia Pro. Subscribe Now!

Arul Ganesh (Company Secretary) (98 Points)
Replied 29 December 2008

Corporate tax is payable by a company on income earned by it during the financial year.The income and the tax amount is to be calculated as per the income tax act. This is similar to an individual paying tax on thier income. "Dividend tax is another concent, that is to say, it is not taxable on the hands of the receiver whereas the company paying dividend has to pay tax.