At Ahuja & Ahuja Chartered Accountants, we provide comprehensive corporate tax services to companies in the Delhi/NCR region. Our expert and experienced Chartered Accountants team has over two decades of industry experience and can help you navigate the complexities of corporate taxation.
What is Corporate Tax?
Corporate tax is a levy on a company’s profit by the government. It is calculated by deducting expenses, including the cost of goods sold or services procured and depreciation from revenues. The applicable tax rates are then applied to create a legal obligation that the company owes the government.
In India, the Income Tax Act 1961 governs the provisions of charging corporate tax to companies. The global income of the companies registered in India is covered for taxation under this. Whereas in the case of foreign companies, only the payment received or accrued in India is taxable under the corporate tax.
Domestic Company and Foreign Company
In corporate taxation, it is essential to understand the difference between a domestic company and a foreign company.
A domestic company refers to a company whose business is originated in India or any foreign company whose effective management and control are entirely situated in India. These companies are registered under the Companies Act, 1956 or Companies Act, 2013 and are subject to Indian corporate tax laws on their global income.
On the other hand, a foreign company is any company that has yet to originate in India and whose effective control and management are situated outside India. Foreign companies are only subject to Indian corporate tax laws on the income they receive or accrue in India.
Companies need to determine whether they are classified as a domestic or foreign companies for taxation purposes, as this can affect their tax liability and compliance requirements. Expert advice from a qualified tax professional can help businesses navigate the complexities of corporate taxation and ensure compliance with relevant laws and regulations.
Our Corporate Tax Services
Our corporate tax services are designed to help companies reduce their taxable income and comply with tax authority regulations. We provide the following services:
Corporate Tax Planning: We work with our clients to develop tax planning strategies that minimize their tax liability.
Corporate Tax Compliance: We assist our clients in meeting all tax-related filings for corporates and provide them with the final analysis of financial statements related to tax accounting.
Accounting for Income Taxes: Our team of experts provides accounting services to help companies manage their income taxes effectively.
Audit Support: We provide audit support to corporates, ensuring compliance with tax regulations.
Due Diligence: We perform due diligence for corporate issues and tax controversies, helping companies identify risk areas and mitigate financial statements and tax compliance disclosures.
International Tax Planning: We provide international tax planning services for overseas entities, helping companies navigate the complexities of international taxation.
Why Choose Ahuja & Ahuja Chartered Accountants?
Our team of experts possesses vast experience in corporate taxation, and we use our sound mind of what it necessitates to improve useful tax policies – with the efficiency and accuracy needed in the present volatile tax environment. We work with our clients as entrusted advisors and allies to manifest a deep-rooted knowledge of their businesses – including businesses that battle in global markets and across state and territorial jurisdictions.
We drive value and build an understanding of assessing authority rules and processes affecting tax reporting, planning, and accounting for corporate taxes. Our clients appreciate us for our reliability of expertise, efficiency, performance, study to details and excellent services.
FAQs
Who has to pay corporate tax?
Corporate tax is levied on the companies, whether domestic or foreign, that operate within a country’s jurisdiction.
What is the governing law for corporate tax in India?
In India, the Income Tax Act, 1961 governs the provisions of charging corporate tax to companies.
Is it mandatory for every company to file its return of income irrespective of the amount of income or losses?
Yes, every company must file its return of income irrespective of the amount of income or losses.
What ITR form applies to companies?
Form ITR-6 applies to companies. However, the companies claiming exemption under section 11 (charitable or religious trusts) cannot use ITR-6 form.
What are the components of income of a company?
The following are a company’s income components: Income from Business and Profession, Income from House Property, Income from Capital Gains, and Income from Other sources. A company does not earn salary income.
What is Minimum Alternate Tax (MAT)?
MAT is prescribed under Section 115JB of the Act and has been a part of the statute for decades now. MAT aims to tax companies at a MAT rate on book profit, or at the tax rate on taxable income, whichever is higher.
Can companies reduce their taxable income?
Companies can develop possibilities to reduce and defer corporate taxes by implementing sound tax policies and utilizing tax planning strategies.