Answer Posted / tax beginner

The Indian Income Tax Act contains large number of
exemptions from total income. Besides exemptions, there are
several deductions permitted from gross total income.
Further, depreciation allowable under the Income Tax Act is
not the same as required under the Companies Act. The
result of such exemptions, deductions, and other incentives
under the Income tax Act in the form of liberal rates of
depreciation is the emergence of Zero tax companies which
in spite of having high book profit are able to reduce
their taxable income to nil.

The system of minimum alternate tax has accordingly been
introduced under which a company is required to pay a
minimum tax of 18 % of the book profit in case the tax on
the total income computed under the normal provisions of
law works out to less than this amount [Sec 115JB].

So if Book Profit before Depreciation for a Construction
(Infrastructure) Company is for example Rs.7,00,000/- and
after claiming for Depreciation and other exemptions Gross
Taxable Income comes down to 4,00,000/-. The Tax works out
to be Rs.1,20,000/- (30%).
However MAT works out to be Rs.1,26,000/- (Rs.7,00,000/- @
18%). The Company has to pay the MAT of Rs.1,26,000/-

what is the significance of business taxation in private company?

2109

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Explain the Calculation of Sales Tax?

2103

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WHAT IS THE PORVISION OF INCOME TAX & SELF ASSESSMENT TAX AFTER AUDIT IN PVT LTD CO & LTD CO , PLEASE GIEVE ANSWER IN DETAIL WITH ENTERY TO MY E-MAIL ADDRESSS

2114

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When and how Wct is applicable on Labour Job Work and what is the percentage?

2896

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Making delivery challan is possiable between two branch of difference code

2170

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What is the difference between Indian and us taxation

2626

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Please advise where to enter Income tax paid to Govt. in tally and on which head account to be created///

1939

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what is the method of work contract tax computation

2787

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for applying way bill for to send the materials from one state to onother state for a part load ( not full exclussive truck load)through transporter,dose it required vehical registration number or only transporter details can do.(as for part load , transporter unable to inform the vehical number in advance).kindly advise.

1923

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updated rates of sales tax & VAT in Maharashtra

2788

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how to calculate tax for the income earners

2125

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if any civil contractor provide service to education institute, then there is an exemption for service tax liability, and he should be quoted it on its invoice, can u provide me sample invoice formats

2151

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I am working as account in one of the logistics company for one year. I would like to know about service tax and how can I post necessary entries

2507

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can penalty be imposed under sec 96 of vat act west bengalfor goods destroyed or damaged

2312

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kindly advise me any set off in excise duty in maharashtra

1579

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