TaxTonic #28: Tax Concessions for Manufacturers - Key Issues & Redressals!
- Year of Publication: 2023
- ISBN: 0
Episode Duration:
100 Minutes
Episode Background:
'TaxTonic', a 'subscriber only' thought leadership series, is Taxsutra's endeavour to consistently deliver top notch technical content to it's readers. The labyrinth of tax rulings on convoluted transactions keeps the world of taxation unpredictable and ever-evolving. This series will feature engrossing presentations, incisive analyses and a deep-dive by the tax experts on burning issues & controversies. So, gear up for a 'tonic' to chisel your tax mind and challenge your wit.
Speaker:
Mr. Abhishek Mundada (Dhruva Advisors LLP)
Moderator:
Mr. Sachin Sastakar (Chartered Accountant)
What shall the episode cover?
In order to attract fresh investment in the manufacturing sector and also to incentivise ‘Make in India’, Section 115BAB was inserted in the Income-tax Act with effect from FY 2019-20. Section 115BAB is a concessional tax regime which allows any new domestic manufacturing company incorporated on or after Oct 1, 2019 an option to pay income-tax at the rate of 15%. This new initiative and tax rate offered by India is not only compliant with the Global Minimum Tax rate but also fuels India for becoming a USD 5 trillion economy. Needless to mention that a preferential regime comes with additional conditions to be satisfied by the taxpayers.
In this next episode of TaxTonic, Taxsutra brings to you a discussion to understand the complexities surrounding the concessional tax regime for domestic manufacturers. The episode broadly focuses on:
1. Meaning of the term “Manufacture” and “Production”
2. Difference between 'Registration', 'Set Up' and 'Commencement'
3. Business Reorganisation v. Corporate Restructuring
4. Second hand machinery test
5. Scope of incidental income and applicable tax rate
6. Substantial expansion of business
7. Consequences on breach of conditions
8. Impact of domestic Transfer Pricing provisions
Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.
Taxsutra suite of portals :
1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt)
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law
6. Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)
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Ratings and Reviews
Overall Rating
- Year of Publication: 2023
- ISBN: 0
Episode Duration:
100 Minutes
Episode Background:
'TaxTonic', a 'subscriber only' thought leadership series, is Taxsutra's endeavour to consistently deliver top notch technical content to it's readers. The labyrinth of tax rulings on convoluted transactions keeps the world of taxation unpredictable and ever-evolving. This series will feature engrossing presentations, incisive analyses and a deep-dive by the tax experts on burning issues & controversies. So, gear up for a 'tonic' to chisel your tax mind and challenge your wit.
Speaker:
Mr. Abhishek Mundada (Dhruva Advisors LLP)
Moderator:
Mr. Sachin Sastakar (Chartered Accountant)
What shall the episode cover?
In order to attract fresh investment in the manufacturing sector and also to incentivise ‘Make in India’, Section 115BAB was inserted in the Income-tax Act with effect from FY 2019-20. Section 115BAB is a concessional tax regime which allows any new domestic manufacturing company incorporated on or after Oct 1, 2019 an option to pay income-tax at the rate of 15%. This new initiative and tax rate offered by India is not only compliant with the Global Minimum Tax rate but also fuels India for becoming a USD 5 trillion economy. Needless to mention that a preferential regime comes with additional conditions to be satisfied by the taxpayers.
In this next episode of TaxTonic, Taxsutra brings to you a discussion to understand the complexities surrounding the concessional tax regime for domestic manufacturers. The episode broadly focuses on:
1. Meaning of the term “Manufacture” and “Production”
2. Difference between 'Registration', 'Set Up' and 'Commencement'
3. Business Reorganisation v. Corporate Restructuring
4. Second hand machinery test
5. Scope of incidental income and applicable tax rate
6. Substantial expansion of business
7. Consequences on breach of conditions
8. Impact of domestic Transfer Pricing provisions
Taxsutra is considered the most credible source of tax news in the tax fraternity. What started as a fledgling start-up has now become a leading brand in the tax world not only in India, but across the globe. Taxsutra's diverse customer set includes Fortune 500 Companies, large Indian Business Groups, Global Conglomerates, Tax Judges, IRS Officers, CBDT, Tax Lawyers & thousands of tax practitioners.
Taxsutra suite of portals :
1. Real time tax news & analysis for Corporate Tax (www.taxsutra.com/dt)
2. Transfer Pricing Portal (www.taxsutra.com/tp)
3. GST and Central Indirect Taxes Portals (www.taxsutra.com/gst - www.idt.taxsutra.com)
4. "Taxsutra Database" - Powerful Online Direct Tax Reference and Search Tool (www.database.taxsutra.com)
5. LawStreetIndia (LSI) (www.lawstreetindia.com) contains sub-modules on Company law, Securities law (SEBI/SAT), FEMA, IP laws & Competition Law
6. Taxsutra Accounting Standards portal (Ind-AS) (www.greentick.taxsutra.com)
