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%

[DR.MARIAPPAN GOVINDARAJAN]

The first condition of Section 115BA(2) is not fulfilled your company is not eligible to pay tax at 25%. (The company is not incorporated after 01.04.2016).

AI Summary

Corporate tax rate eligibility: concessional 25% unavailable where company incorporation predates the prescribed effective date. Eligibility for the concessional 25% corporate tax under Section 115BA requires satisfying turnover criteria and a condition that the company be set up and registered on or after the prescribed effective date; the company here was incorporated on 16 December 2015 and therefore does not fulfil the stated incorporation-date condition and is not eligible to opt for the 25% rate.