Hello
This query is : Resolved
Dimple.Patel
(Querist)
15 March 2011
Plz Explain me the concept of marginal relief..Is it available for all domestic companies??????is it always necessary to calculate it even if the turnover is less then 1 crore.......what is it??????plz rpl....
sudhakar ca cwa
(Expert)
15 March 2011
Marginal Relief is calculated only when the company is attracting the Surcharge.
By example you can easily understand this.
suppose tax rate is 30% and surcharge is 5%.
Income of A Ltd - 99.9 lakhs then tax is 29.97 lakhs
Company-B income is 1.01crore then surcharge will attarct and its total tax will be 31.51lakhs.
for gaining 1 lakh, he is paying a surcharge of 1.5 lakhs.
which is more than his additional earnings.
in this marginal relief will be given
By example you can easily understand this.
suppose tax rate is 30% and surcharge is 5%.
Income of A Ltd - 99.9 lakhs then tax is 29.97 lakhs
Company-B income is 1.01crore then surcharge will attarct and its total tax will be 31.51lakhs.
for gaining 1 lakh, he is paying a surcharge of 1.5 lakhs.
which is more than his additional earnings.
in this marginal relief will be given
sudhakar ca cwa
(Expert)
15 March 2011
and It is not necessary to calculate marginal relief in all situations.
Dimple.Patel
(Querist)
16 March 2011
Thank You..Sir..Plz let me know whether it is for foreign & domestic com..both....
Also tell me sir whether it is a new concept or not.....In which situations is it necessary to calculate marginal relief????plz let me know????
Also tell me sir whether it is a new concept or not.....In which situations is it necessary to calculate marginal relief????plz let me know????
sudhakar ca cwa
(Expert)
16 March 2011
It is not a New Concept,
It is old concept.
For applicability for foreign companies i think it will be applicable, but i need to check once, i am not sure about this.
It is old concept.
For applicability for foreign companies i think it will be applicable, but i need to check once, i am not sure about this.
Dimple.Patel
(Querist)
16 March 2011
Fine Sir....But plz let me know when u r confirmed....Thanks for help and plz be always there for the help.....Thank You Sir....
sudhakar ca cwa
(Expert)
16 March 2011
Yes my view is correct. it is applicable is foreign companies also. for details pls check the below doubts.
and one more thing here all are there to help you only.
https://www.caclubindia.com/forum/marginal-relief-for-companies-60221.asp
and one more thing here all are there to help you only.
https://www.caclubindia.com/forum/marginal-relief-for-companies-60221.asp
Dimple.Patel
(Querist)
17 March 2011
Thamk you Sir......
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