Lok Sabha Question No. 380 (UNSTARRED), answered on 2017-02-03
Subject: Corporate Tax
Ministry: FINANCE
Asked by: RABINDRA KUMAR JENA

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

## LOK SABHA UNSTARRED QUESTION NO. 380 TO BE ANSWERED ON FRIDAY, THE 3R0 FEBRUARY, 2017

14,MAGHA 1938 (SAKA)

## 'CORPORATE TAX'

380: SHRI RABINDRA KUMAR JENA:

Will the Minister of FINANCE be pleased to state:

- a) the details of corporate tax rate prevailing during the last three years;
- b) the details of corporate tax rates in various countries of the world;
- c) the corporate tax collection both in absolute terms and in terms of percentage of GDP in India and other countries during the last three years;
- d) whether the Government is aware that the USA is likely to cut corporate tax rates by half, if so, the details thereof; and
- e) the manner in which the above decision is likely to affect our corporate scenario and the corrective steps taken by the Government in this regard?

## ANSWER

## (MINISTER OF STATE IN THE MINISTRY OF FINANCE)

## (SHRI SANTOSH KUMAR GANGWAR)

- (a): The details of corporate tax rate prevailing during the last three years i.e. financial year's 2013-
- (b): Information regarding details of  corporate tax rates in various countries of the world is not maintained in a centralized manner in CBDT.
- (c): The corporate tax collection both in absolute terms and in terms of percentage of GDP in India is given as under:

## (Rs. in crores)

| F.Y.    |   Corporate Direct Taxes Collection |   GDP Current Market Price | Corporate Tax GDP Ratio   |
|---------|-------------------------------------|----------------------------|---------------------------|
| 2013-14 |                              394678 |                   11355073 | 3.48%                     |
| 2014-15 |                              428925 |                   12541208 | 3.42%                     |
| 2015-16 |                              453228 |                   13576086 | 3.34%                     |

However , the data of tax GDP ratio of other countries is not  maintained in a centralized manner in CBDT.

- (d) & (e): No such information is available.

| Head of Income                             | FY. 2013-14   | FY.2014-15   |     |
|--------------------------------------------|---------------|--------------|-----|
| Long-term capital gain                     | 20%           | 20%          | 20% |
| Short-term Capital Gain u/s 1114           | 15%           | 15%          | 15% |
| Dividend from a subsidiary foreign company | 15%           | 15%          | 15% |
| Other Incomes                              | 30%           | 30%          | 30% |

In addition, surcharge, education cess and secondary & higher education cess are also levied a5 under:

|                                   |                                                                                                       |                                                                                                                     | FY 2015-16                                                                        |
|-----------------------------------|-------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
| Surcharge                         | 5% (if total income exceeds Rs.1 crore but does not exceed Rs. 10 crore) 10% (if total income crore ) | 5% (if total income exceeds Rs.1 crore but does not exceed Rs. 10 crore) 10% (if total income exceeds `Rs. 10 crore | (if total income exceeds Rs.1 10 crore) 12% (if total income exceeds Rs. 10 crore |
| Education Cess                    | 2%                                                                                                    | 2%                                                                                                                  | 2%                                                                                |
| Secondary & Higher Education Cess | 1%                                                                                                    | 1%                                                                                                                  | 1%                                                                                |

## Eoreign Company

| Head of Income                                                                     | F.Y. 2013-14                                                                                                        |                                                                                                                                 |                                                                                                                                 |
|------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|
| Long-term Capital Gain                                                             | 20%                                                                                                                 | 20%                                                                                                                             | 20%                                                                                                                             |
| Short-term Capital Gain uls 111A                                                   | 15%                                                                                                                 | 15%                                                                                                                             | 15%                                                                                                                             |
| Income from Royalty or fees for technical services from Govt. Or an Indian Concern | 50% (in pursuance of agreement made on before 31.03.1976) 25% (in pursuance of agreement made on after 01.04.1976 ) | 50% (in pursuance of an agreement made on or before 31.03.1976) 25% (in pursuance of an agreement made on or after 01.04.1976 ) | 50% (in pursuance of an agreement made on or before 31.03.1976} 10% (in pursuance of an agreement made on or after 01.04.1976 ) |
| Other Income                                                                       | 40%                                                                                                                 | 40%                                                                                                                             | 40%                                                                                                                             |

In addition, surcharge, education cess and secondary & higher education cess are levied as under:

|                                   | F.Y. 2013-14                                                                                                      |                                                                                                                   |                                                                                                                   |
|-----------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------|
| Surcharge                         | 2% (if total income exceeds Rs.1 crore but does not exceed Rs. 10 crore) 5% (if total income exceeds Rs; 10 crore | 2% (if total income exceeds Rs.1 crore but does not exceed Rs. 10 crore) 5% (if total income exceeds Rs. 10 crore | 2% (if total income exceeds Rs.1 crore but does not exceed Rs. 10 crore) 59 (if total income exceeds Rs. 10 crore |
| Education Cess                    | 2%                                                                                                                | 2%                                                                                                                | 2%                                                                                                                |
| Secondary & Higher Education Cess | 1%                                                                                                                | 1%                                                                                                                | 1%                                                                                                                |