Hi Experts,
One of my client is a new company, incorporated in FY 2018-19. It's turnover is less than 5 crore during the FY. The company was not in existence during the FY 2016-17 and turnover criteria of 250 Crore may not be applicable here. Its a service sector company and section 115BA is not applicable also. It would be great if anyone can clarify what is the tax rate for this company? 25% or 30%?
Thank you.
New Service Company Challenges Tax Rate; Debate Over Applicability of 25% or 30% Under Finance Act 2019 A client, a new service sector company incorporated in FY 2018-19 with a turnover under 5 crore, seeks clarification on its applicable tax rate, questioning whether it should be 25% or 30%. Neekita Jindal responds that since Section 115BA does not apply, the tax rate is 30%. However, CA Susheel Gupta counters that for companies not covered under Section 115BA and with turnover below 250 crore, the tax rate is 25%, referencing Section 2 of the Finance Act (No. 2) 2019. (AI Summary)
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