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Business » Taxation System India » Corporate Tax Rate |
Corporate Tax Rate in India |
The corporate tax rate in India is at similarity with the tax rates of the other nations worldwide. The corporate tax rate in India depends on the beginning of the company.
If the company is home to India, the tax rate is flat at 30%. But for a foreign company, the tax rate depends on a number of considerations and factors.
The companies that are domicile to India are taxed on the worldwide income whereas the foreign companies in India are taxed on their income within the Indian Territory. The incomes that are payable in case of foreign companies are interest gained, royalties, income from sale of equity shares of the company, income from the capital assets in India, dividends earned, etc.
Foreign Companies income tax rates :
- For dividends 20% in case of non-treaty foreign companies and 15% for companies under the treaty based in united states.
- For interest gains 20% in case of non-treaty foreign companies and 15% for companies under the treaty based in united states.
- For royalties 30% in case of non-treaty foreign companies and 20% for companies under the treaty based in united states.
- For technology based services in case of non-treaty foreign companies and 20% for companies under the treaty based in united states.
- For other kinds of income and gains 55% in case of non-treaty foreign companies and 55% for companies under the treaty based in united states.
- Attention must be given on levying inter corporate rates in case the holding is minimum.
- Attention must be given on the fact that the sanctions of the tax authorities on tax withholding.
- Attention must be given on the several of the tax treaties India signed with the other countries and also the various encouraging tax rates.
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