Corporate tax
Tax rate for resident companies |
The rate of common law applicable to residents companies is 36.59%. Foreign companies as well as branches located in India (also considered as legally different from the parent company in terms of fiscality) are subjected to a 41.82% rate.
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Taxe rate on long-term capital gains |
Capital gains is taxed in India at the rate of 20%.
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System governing groups of companies and dividends paid by subsidiaries to their parent companies |
They are subjected to a withholding tax with a conventional rate limited to 15% and get in Belgium a tax credit of an equivalent amount.
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Tax rate on branches |
Branches are taxed in India at the rate of 41.82%.
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Income tax
Fiscal year |
The fiscal year begins on April 1-st on March 31 of the next year.
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Income tax rate |
The progressive rate of the income tax varies from 0% to 30%
| 0-50,000 Rs | 0% | | 50,001 to 60,000 Rs | 10% | | 60,001 to 150,000 Rs | 20% | | Beyond 150,000 Rs | 30% |
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VAT rates
Standard rates |
There is no VAT in India, but the central authorities take Sales Tax at the rate of 4% owed for any operation of wholesale or retail sale made between provinces. These operations are taxed with rates varying from 4% to 20%.
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Reduced rates |
No.
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Other important taxes
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Name of tax |
Rate |
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Wealth tax
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Exemption up to 1.5 millions Rupees and 1% afterward
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Successions and donations
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7%
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Tax on the contract of employment
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4 to 10%
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Accounting
Introduction
Indian financial accounting aims at giving a sincere overview of the results of the company.
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Obligations and publications
The balance sheet and the profit and loss account must be published every fiscal year.
Certification and auditing
Every fiscal year must be verified by an auditor who must be a member of "The Institute of Cost and Works Accountants of India".
Professionals and representative organizations
The main representative body is "The Institute of Chartered Accountants in India".
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Last modified in
January 2003
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