Corporate Tax @25% u/s 115BA or applicable to MSME in respect of Turnover

[gvenugopal g]

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 ₹ 37.42, FY 2016-17 ₹ 236.22 and FY 2017-18 ₹ 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 ₹ 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 suggest whether we need to pay Income tax @ 25% or 30%

AI Summary

Company Must Pay 30% Tax Rate for 2018-19; Not Eligible for 25% Under Section 115BA Due to Incorporation Date. A company inquired about the applicable corporate tax rate, questioning whether it should pay 25% or 30% for the assessment year 2018-19. The company was incorporated on December 16, 2015, with turnovers of 37.42 crore in FY 2015-16, 236.22 crore in FY 2016-17, and 108.55 crore in FY 2017-18. According to Section 115BA, a 25% tax rate applies only if the company was set up and registered on or after March 1, 2016. A response clarified that since the company was incorporated before this date, it is not eligible for the 25% tax rate.