Changes in Corporate Taxation and ICDS

The Government promulgated the Taxation Laws (Amendment) Ordinance 20191 , announcing key changes to corporate tax rates in the Income-tax Act, 1961 (Act). While existing domestic companies have been provided an option to pay tax at a concessional rate of 22% , new domestic companies set up on or after 1 October 2019, and commencing manufacturing before 31 March 2023, would have the option to pay tax at 15%. However, the reduced tax rates come with consequential surrender of specified deductions/ incentives.

Target Audience:

Managers/Senior Executives from

1. Finance,
2. Accounts,
3. HRD Department and
4. All those who are concerned with Tax Deduction at Source and Financial Management   Decision

Course Outline:

New Corporate Tax Rates with Case Studies

• Salient features and impact of new section 115BAB

• Relevant conditions for availing the benefit of section 115BAB.
• Exemptions/deductions/incentives not available for an entity opting for section 115BAB. Alternate deduction under other sections.
• Applicability of MAT. Status of MAT credit brought forward from earlier years.
• Option, how to exercise? Is it possible to revert back? Is it possible if option is not immediately from the current year but to be exercised after a few years?
• Effective tax rate. Applicability of surcharge. Applicability of a special tax rate under other provisions of Chapter XII (i.e., sections 110 to 115BBG).
• Is it possible to carry on any other business along with manufacturing? Meaning of manufacture, production, article, research, re-construction, splitting up, etc. Meaning of “does not use machinery or plant previously used for any purpose”.
• Applicability of domestic transfer pricing provisions.
• When it is beneficial to opt for new tax regime under section 115BAB?

• Different Case Studies –

1. Regular tax rate of 30% v. new tax regime of 15% under section 115BAB.
2. Existing concessional rate of 25% v. new tax regime of 15% under section 115BAB.
3. New manufacturing start-up/tax incentive under section 80-IC v. new tax regime of 15% under section 115BAB

• Salient features and impact of new section 115BAA

• Conditions to be satisfied by a domestic company to avail concessional tax regime of 22% under section 115BAA.
• Exemptions/deductions/incentives not available for an entity opting for section 115BAA. Alternate deduction under other sections. .
• Applicability of MAT. Status of MAT credit brought forward from earlier years.
• Option, how to exercise? Is it possible to revert back? When the option should be exercised? Is it possible if option is not immediately from the current year but to be exercised after a few years?
• Effective tax rate. Applicability of surcharge. Applicability of a special tax rate under other provisions of Chapter XII (i.e., sections 110 to 115BBG).
• When it is beneficial to opt for new tax regime under section 115BAA?

• Different Case Studies –

1. Regular tax rate of 30% v. new tax regime of 22% under section 115BAA.
2. Existing concessional rate of 25% v. new tax regime of 22% under section 115BAA.
3. New manufacturing start-up/tax incentive under section 80-IC v. new tax regime of 22% under section 115BAA.
4. Existing start-up/tax incentives under section 80-IC v. new tax regime of 22% under section 115BAA.
5. Existing firm/LLP v. Conversion into company and opting for section 115BAA.
6. Is it possible for a company (which has opted for section 115BAA) to claim the benefit of set-off of brought forward loss, depreciation, additional depreciation? What about applicability of section 79?

• Minimum alternate tax under section 115JB
• New depreciation rates for cars, buses, lorries
  • Conditions to claim the benefit of higher depreciation for cars, buses, lorries.
  • Any conditions pertaining to acquisition of only “new” car/bus/lorry.

• Buy-back of shares
  • New amendment to section 115QA
  • Impact of new amendment on availing exemption under section 10(34A)

• New amendment pertaining to surcharge
  • Who can avail the benefit of lower surcharge?
  • Different Cases Studies –
    • Income exceeding Rs. 5 crore
    • Income above Rs. 2 crore but not more than Rs. 5 crore
    • Income above Rs. 1 crore but not more than Rs. 2 crore
    • Income above Rs. 50 lakh but not more than Rs. 1 crore
    • Income up to Rs. 50 lakh
    • New surcharge and marginal relief
    • Impact of new surcharge on payment of advance tax
    • Relief given to Foreign Portfolio Investors.

Faculty:

Dr. Vinod K. Singhania

• Renowned tax consultant –Associated as senior tax consultant with several business houses and professional institutes in India and abroad
• Seminar/workshops in tax laws – Key speaker in more than 750 seminars/ workshops in India and abroad
• Published work in Tax Laws -More than 40 books published by Taxmann and 300 research articles published in different magazines and journals
• Research experience in tax laws– 30 years in guiding Ph.D students and undertaking research in different aspects of taxation in India and abroad