Tax Book 2023

Final Tax Regime and Minimum Tax Chapter- 22

6. Alternative Corporate
   Tax

113C Detail given in the explanation of this section

7. Imports of edible and

packing material

148(8) 5.5% (Adjustable from tax year 2021)

8. Services 153(1)(b) 10 % (other than companies)

9. Goods transport services 153(1)(b) 2%

10. Electricity bills (other than

companies)

235(4)(a) up to bill Rs. 3 6 0,000 per annum

11. 
    

    Commercial imports 148(8) 5 .5% of assessed value (other than capital goods and raw material)

    
    


12. 
    

    Minimum tax on income of certain persons (section 113):

    
    


13. 
    

    To whom
    applicable

    
    

(a) A resident company and PE of a non resident company;

(b) An AOP having turnover of Rs. 100 million or above in the tax year 20 1 7 or

in any subsequent tax year, or

(c) An individual having turnover of Rs. 100 million or above in the tax year

2017 or in any subsequent tax year.

2. When
   applicable

If tax payable (other than tax payable or paid as final tax) is zero or less than

minimum tax on turnover because of:

(a) Loss for the current of earlier year,

(b) Exemption from tax, or

(c) Rebates of credits

3. Rate of tax 1. 25 % or reduced tax rates as the case may be of the turnover.

4. Definition of

turnover

Turnover means:

(a) the gross sales or gross receipts, exclusive of Sales Tax and Federal Excise

duty or any trade discounts shown on invoices, or bills, derived from the sale

of goods, and also excluding any amount taken as deemed income and is

assessed as final discharge of the tax liability for which tax is already paid or

payable;

(b) Gross fee for rendering of services, Gross receipts from contracts and

commission excluding chargeable to tax under final tax regime.

(c) If the company is member of an AOP then share of company in above

amounts of the AOP. (See Example A hereunder)

Explanation.

For the removal of doubt, it is clarified that the definition of turnover covers

receipts from all business activities in line with expression “ turnover from all

sources” used in subsection (1) including but not limited to receipts from sale of

immoveable property where such receipt is taxable under the head Income from

Business;

5. Facility of

carry forward

Minimum tax in excess of actual tax liability shall be carried forward and

adjusted against the tax liability of subsequent 5 tax years. Facility of carry

forward has also been extended to individuals and AOP’s from the tax year

2014. (See Example B hereunder)

Provided that if tax is paid under sub-section (1) due to the fact that no tax is

payable or paid for the year, the entire amount of tax paid under sub-section (1)

shall be carried forward for adjustment in the manner stated aforesaid:

Provided further that the amount under this clause shall be carried forward

and adjusted against tax liability for three tax years immediately succeeding the

tax year for which the amount was paid.