Applicability of tax rate of 25 % to domestic companies

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Suraj (Querist)
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09 March 2019 Dear All,

For the assessment year 2019-20, a domestic company is taxable at 30%. However, the tax rate would be 25% if turnover or gross receipt of the company does not exceed Rs. 250 crore in the previous year 2016-17.

If a company is formed in December 2016 i.e. in FY FY 2016-17 and there is no turnover or gross receipts till March 31st, 2017. Just company formation expenses and few other expenses were there during FY 2016-17.

Then is above condition still applicable to such companies for applying tax rate of 25% for FY 2018-19??

Please guide.

Regards,
Suraj

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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11 March 2019 Yes 25% tax rate applicable for such companies.

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Suraj

Suraj (Querist)
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11 March 2019 Sir, The Company has not filed ITR for F. Y. 2016-17. Means no reporting of Turnover or Gross receipts had been done. Then, still this condition is applicable?? Our finance minister used the word "reported" in his speech, which is mentioned in ET (Link: https://economictimes.indiatimes.com/small-biz/policy-trends/budget-2018-corporate-tax-rate-reduced-to-25-for-companies-with-turnover-of-up-to-rs-250-crore/articleshow/62738932.cms )

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 March 2019 For all the companies 25% will be the tax if turnover is less than 250 crore.irrespective of turnover of previous years.

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