25% tax rate to msmes on the basis of turnover and corporate opted section 115ba

Dear All,

Kindly suggest us, whether applicability of tax rate whether 25% or 30%

Company incorporated on 16-Dec-2015

Turover (Rupees in Crore) of last three financial years are FY 2015-16 Rs.37.42, FY 2016-17 Rs.236.22 and FY 2017-18 Rs.108.55

[For the Assessment Year 2018-19, a domestic company is taxable at 30%. However, tax rate would be 25% where turnover or gross receipt of the company does not exceed Rs. 50 crore in the previous year 2015-16]

[Section 115BA has been inserted w.e.f: ASST YEAR 2017-16, to opt 25% rate, 'The Company has been set-up and registered on or after 01-March-2016]

Kindly clarrify whether we need to pay Income tax @ 25% or 30% 

Thanks & Regards: Murugesan Muthuraman, Erode (+919677480111)

Replies (3)
If the Turnover or Gross receipts for FY 2015-16 is not above 50 Crore then the company can pay tax @ 25%.

I think Section 115BA is for Domestic Co's who are paying tax @ 30% can opt to pay tax @ 25% only if the conditions under subsection 2 are satisfied.

Since your Turnover in FY 2015-16 does not exceed 50 Crore then you can pay tax @ 25%.

Thank you Sir for your reply and clearing my doubt "Corporate Tax @ 25% u/s 115BA or applicable to MSME in respect of Turnover"

Thanks & Regards:

Murugesan M

In order to avail Tax Rate of 25 %, a Company qualifying u/s 115BA, though required to satisfy certain conditions, need not satisfy the condition of specified Threshold of Gross Turnover or Gross Receipts.

 

Whereas any Company, other than that qualifying u/s 115BA, must satisfy the condition of specified Threshold of Gross Turnover or Gross Receipts in order to avail Tax Rate of 25 %.

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