56

Minimum TaxSection 113Section 113C

57

[S-113] Minimum Tax on Income of Certain PersonsMinimum Tax

CompanyResident Turnover 10 million or aboveIn TY 2017 or after

Tax payable is less than 1% of TurnoverDue to:(i) Loss of the year(ii) Set off of loss of earlier year(iii) Exemption from tax(iv) Tax Credits OR Rebates(v) Allowances/Deductions (including Depreciation & Amortization)

IndividualAOPSpecific Conditions

General Conditions

Turnover shall be treated as income Pay tax on basis of turnover @ 1st Sched, Part-I, Div-IX The excess tax paid due to minimum tax, shall be carried forward for adjustment against tax liability upto 5 subsequent tax years

Tax Payable shall not include:(i) Final Tax u/s 169(ii) Tax Payable u/s 4B

Turnover means:Gross Sales

Gross Fees

Gross Fees

Share of profit from AOP

ExcludingSales TaxFEDTrade DiscountDeemed income on which Final Tax has been paidDeemed income on which Final Tax has been paidDeemed income on which Final Tax has been paid

IncludingCommission

Turnover means:Gross Sales

Gross Fees(Services)Gross Fees(Contracts)Share of Company in AOP in above amounts

58

[S-113C] Alternate Corporate TaxMinimum Tax

CompanyTax Payable under NTR

Minimum TaxHigher

Corporate Tax

In case of Section 113, C/f upto5 subsequent Tax Years

Alternate Corporate TaxHigher

Tax Payable

C/f upto10 subsequent Tax Years

Alternate Corporate TaxAccounting Profit before Tax(excluding share from associate under Equity Method of accounting)Less:Exempt IncomeIncome other than under NTRIncome subject to Tax Credit u/s 65D, 65E, 100CProportionate Expenses relating to above incomeAccounting Income@ 17% = Alternate Corporate TaxLess:Tax Credit u/s 64BTax Credit u/s 65BTax Payable

100

(11)(11)(11)370

11.90(1)(1)

9.90

Other than:i. Insurance Co.[4th Sched]ii. Petroleum & Mineral deposit exploration[5th Sched]iii. Banking Co.[7th Sched]

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Alternate Corporate Tax Practice-ITax under NTRMinimum Tax u/s 113Alternate Corporate Tax

10,000,00014,000,00020,000,000

Company

Tax Payable under NTR10,000,000Minimum Tax14,000,000

HigherCorporate Tax14,000,000

4,000,000 C/f upto5 subsequent Tax Years

Alternate Corporate Tax20,000,000

HigherTax Payable20,000,000

6,000,000C/f upto10 subsequent Tax Years

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Alternate Corporate Tax Practice-IITotal RevenueTotal ExpenseAccounting Profit before taxTaxable Income under NTRTotal Revenue comprise of following:i. Exemptii. Taxable

200,000,00050,000,000150,000,00025,000,000

70,000,000130,000,000

Alternate Corporate TaxAccounting Profit before Tax(excluding share from associate under Equity Method of accounting)Less:Exempt IncomeIncome other than under NTRIncome subject to Tax Credit u/s 65D, 65E, 100CProportionate Expenses relating to above incomeAccounting Income@ 17% = Alternate Corporate TaxLess:Tax Credit u/s 64BTax Credit u/s 65BTax Payable

150,000,000

(70,000,000)0017,500,00097,500,00016,575,000

(0)(0)16,575,000

Proportionate Expenses50 x 70 / 200

Company

NTR tax @ 31%7,750,000

Minimum Tax2,000,000

HigherCorporate Tax

7,750,000

Nothing C/f upto5 subsequent Tax Years

Alternate Corporate Tax16,575,000

HigherTax Payable16,575,000

8,825,000 C/f upto10 subsequent Tax Years