Preferential corporate tax regime for eligible manufacturing companies permits an elective reduced rate subject to eligibility and permanence.

An elective tax regime permits domestic manufacturing companies set up on or after 1 March 2016 and engaged solely in manufacture/production (including related research or distribution) to compute tax at a concessional flat rate, provided they forgo specified deductions and cannot set off carryforward losses attributable to those disallowed deductions; the option must be exercised by the prescribed due date for the first return and, once made, is binding for subsequent years except as allowed under section 200.

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