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Budget India 97 Sponsered by [LOGO]

ChemOtech Fabcon Pvt Ltd.


FOR COMPANY ASSESSEE

  1. The rate of tax for domestic companies is to be reduced from 43% (inclusive of surcharge) to 35%. The surcharge of 7.5% at present is abolished.
  2. The rate of tax for foreign companies is to be reduced from 55% to 48%.
  3. The rate of tax on royalty or fees for technical services receivable by a foreign company is to be reduced from 30% to 20% in respect of agreement made after 31st May, 1997.
  4. The domestic company which declare, distribute and pay dividend after 31st May, 1997 would be liable to pay a flat rate of 10% of such dividends as additional tax U/S 115-O.
  5. Deduction U/S 80M in respect of inter-corporate dividend is to be discontinued.
  6. A company, engaged in manufacture or production of specified items, which incures a capital expenditure (excluding Land & Building) on approved in-house scientific research and development facility, will be eligible for a weighted deduction at 125% of such expenditure. No deduction would be available under any other section in respect of such expenditure.
  7. Proposed sec. 115JJAA provide for carry forward of MAT for set off during the subsequent five assessment years. The scheme pre- scribed is as under:-

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