| For
the Assessment Year 2007-08 |
| Description |
Existing
Rate* (%) |
Proposed
Rate* (%) |
Difference
+ - = (%) |
| Domestic Company |
| Regular
Tax |
33.6 |
33.9** |
+0.33
|
| MAT |
11.22
(of book profits) |
11.33
(of book profits) |
+0.11 |
| DDT |
14.025 |
16.995 |
+2.97 |
| Foreign
Company |
| Regular Tax |
41.82 |
42.33# |
0.41 |
*It includes the applicable
surcharge and the education cess.
**If the income is equal or less than Rs 10 million, it is 30.9%.
#If the income is equal or less than Rs 10 million, it is 41.2%.
A company has been defined as
a juristic person having an independent and separate legal entity from
its shareholders.
Income of the company
is computed and assessed separately in the hands of the company. however
the income of the company which is distributed to its shareholders as
dividend is assessed in their individual hands. Such distribution of
income is not treated as an expenditure in the hands of company, the
income so distributed is an appropriation of the profits of the company.
Residence of a company :
A company is said to be a resident in India during the relevant
previous year if:
- it is an Indian company
- if it is not an Indian company then, the control and the
management of its affairs is situated wholly in India
A company is said to be non-resident in India if it is not an
Indian company and some part of the control and management of its
affairs is situated outside India.
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