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published on 17 May 2023 | reading time approx. 4 minutes
“Make in India” initiative was launched by the Government of India back in 2014 with a view to boost investment in manufacturing sector. There were several benefits of this initiative envisaged in form of new employment opportunities, self sufficiency in respect of critical products, control over inflationary trends, etc. Concessional tax regime was introduced in the year 2019 for corporates. While the existing companies are eligible for ~25 per cent income-tax rate (section 115BAA), newly set up companies (after 30 September 2019) engaged in manufacturing are eligible for concessional tax rate of ~17 per cent (section 115BAB[1]). There is also no Minimum Alternate Tax[2] calculated as a percentage of book profits applicable on opting for either of these concessional tax rate regimes.
Chetan Kakariya
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