Page 2 - Latest Updates on Corporate Tax
Despite unavailability of MAT credit, 60% of firms opt for lower tax regime
In absolute terms, around 300,000 companies are now at the 22% rate, against the earlier 25-30% earlier
 "Despite unavailability of MAT credit, 60% of firms opt for lower tax regime")
Corporate tax cut a consolation for benchmarks in volatile year
Sensex gained 12% while Nifty ended up 10% despite challenges such as the trade war andtrade war and economic slowdown
 "Corporate tax cut a consolation for benchmarks in volatile year")
Corporate tax cuts and growth
Reduced rates will have little impact in the short run, but could have a significant positive impact on growth in the medium term
 "Corporate tax cuts and growth")
Stock mkt more polarised after tax cut; 91% of gains cornered by 13 firms
RIL, HDFC Bank account for 32.4% of total BSE 500 m-cap gains since the cut in tax; 91% of gains cornered by 13 firms
 "Stock mkt more polarised after tax cut; 91% of gains cornered by 13 firms")
Effective tax rates applicable to Indian firms still among the highest
Effective tax rates applicable to companies in India are still among the highest if one includes taxation on dividends and other means of returning surplus cash to promoters and shareholders
 "Effective tax rates applicable to Indian firms still among the highest")
Homebuyers unlikely to gain from reduction in corporation tax rates
Property developers are unlikely to pass on any benefit to homebuyers in the form of price cuts
 "Homebuyers unlikely to gain from reduction in corporation tax rates")
Can India end the exemption raj in personal income tax system as well?
In the process, the corporation tax system would also become more transparent, with reduced scope for litigation and discretion
Govt's decision to cut corporation tax likely to impact power bill
The source of power, renewable or non-renewable, and the nature of the market, regulated or merchant, will be a factor in deciding whether the cost would go down
 "Govt's decision to cut corporation tax likely to impact power bill")
Corporation tax cut: Bond yields may harden, rupee likely to remain stable
The liquidity framework is expected to make rate management conditioned on the prevailing liquidity in the system
 "Corporation tax cut: Bond yields may harden, rupee likely to remain stable")
DTC panel suggestion on corporation tax different from FM's formula
The panel, headed by central board of direct taxes (CBDT) member Akhilesh Ranjan, also recommended 25 per cent corporation tax rate for companies, but without surcharges and cess
 "DTC panel suggestion on corporation tax different from FM's formula")
Double tax relief expands room for growth of hotel firms; stocks rise
While lower GST would push occupancy and thereby aid room rates, lower corporate tax rate should add to earnings
 "Double tax relief expands room for growth of hotel firms; stocks rise")
Here's what India can learn about tax cuts from the American experience
Finance Minister Nirmala Sitharaman is betting that local firms will pass on the corporate tax cuts to customers in the form of lower prices to stimulate demand
 "Here's what India can learn about tax cuts from the American experience")
A 10% jump for India Inc earnings after Modi govt cut taxes, say analysts
The surprise reduction in corporate tax drove a 5.3 per cent surge in the S&P BSE Sensex Index to 38,014.62 on Friday, its biggest gain since May 2009
 "A 10% jump for India Inc earnings after Modi govt cut taxes, say analysts")
No plans to revise fiscal deficit target or cut spending now: Sitharaman
The government cut corporate tax rates on Friday in a surprise move designed to woo manufacturers, revive private investment and lift growth from a six-year low.
 "No plans to revise fiscal deficit target or cut spending now: Sitharaman")
Corporate tax giveaway to have little impact on fiscal goals: Niti Aayog
Many analysts have predicted fiscal deficit overshooting by at least 70 bps to 4.1 per cent given the quantum of the giveaways
 "Corporate tax giveaway to have little impact on fiscal goals: Niti Aayog")
Corporate tax cut to boost manufacturing; unutilised capacity a concern
Industry stakeholders said the lower tax payable would now mean more liquidity in the books of companies, which should reflect in higher investment
 "Corporate tax cut to boost manufacturing; unutilised capacity a concern")
Best of BS Opinion: Corporate tax bonanza, Modi vs economy, and more
Here's a selection of Business Standard opinion pieces for the day
 "Best of BS Opinion: Corporate tax bonanza, Modi vs economy, and more")
Enjoying tax holidays, IT firms won't gain much from the rate cut
The effective tax rate for TCS in FY19 stood at 24.1 per cent, while for HCL Technologies, it was 19.8 per cent
 "Enjoying tax holidays, IT firms won't gain much from the rate cut")
How India's new corporate tax rates compares with its Asian counterparts
The new tax rates now bring India broadly in line with its South-East Asian counterparts
 "How India's new corporate tax rates compares with its Asian counterparts")
Diwali comes early for companies as FM offers tax cuts to lift up economy
The measures are to boost investment and manufacturing under the Make in India initiative
 "Diwali comes early for companies as FM offers tax cuts to lift up economy")
