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New Provisions
from Taxmann's Budget Marathon | Capital Gains | Suvira Agarwal – Partner | Grant Thornton Bharat
by Taxmann
Tax rates prescribed for new manufacturing co-operative societies
• Existing provisions provide for an option to pay concessional tax rate of 15% only to new manufacturing domestic companies. However, the same provision has not been provided for cooperative societies engaged in manufacturing activities.
• Accordingly, it has been proposed to provide the concessional 15% tax regime to new manufacturing cooperative societies as well. The conditions attached are materially similar to the conditions applicable to manufacturing companies.
• It is also proposed that the assessee shall only be engaged in the business of manufacture/ production of article or thing (including business of generation of electricity but excluding certain specified businesses), and any income arising to the assessee which is not derived from or incidental to manufacturing operations shall be taxable at the rate of 22%, without availability of any deduction or allowance.
