“A new provision has been inserted in the Income Tax Act with effect from the fiscal year 2019-20, which allows any domestic company an option to pay income tax at the rate of 22 per cent subject to the condition that they will not avail any exemptions or incentive,” she said. This move will cost government exchequer 1.4 Lakhs Crores Rupees
Indian Finance Minister Nirmala said ”The GST Council has decided to cut hotel room tariff. There will be nil GST rate on hotel room rent up to Rs 1,000,”
Also she added ”GST rate on hotel room rents of above Rs 7,500 will be 18% and on hotel room rent of Rs 1,000-7,500 it will be 12%.”
She said that aerated drinks will no longer come under the compensation scheme and announced exemption for specified defence items from GST/IGST.
”The GST rate on slide fasteners reduced from 18% to 12%, marine fuel 18% to 5%, 12% to 5% on wet grinders consisting of stone as a grinder, & 5% to nil on dried tamarind,” Finance Minister Nirmala Sitharaman said after the meeting of 37th GST Council meeting in Goa.
”Exemption from GST/IGST is being given on import of specified defence goods not being manufactured indigenously, it’s being extended only up to 2024.
Supply of goods & services to FIFA & other specified persons also exempted for U17 Women’s World Cup in India,” the FM added
In order to revive falling economy and To promote growth and investments in the country, Union Finance Minister Nirmala Sitharaman on Friday announced to slash the corporate tax rates for domestic companies and stated that a new provision has been inserted in the Income Tax Act with effect from the fiscal year 2019-20.
“We today propose to slash the corporate tax rates for domestic companies and also for new domestic manufacturing companies,” Sitharaman told media here.
She went on to highlight that “such companies shall not be required to pay any minimum alternative tax.
“Moreover, to attract investment in manufacturing, local companies incorporated after October 2019 will pay tax at 15 per cent, Sitharaman said.
Sitharaman stated that the corporate tax rate will be 22 per cent without exemptions, inclusive of surcharge and cess. “No Minimum Alternate Tax (MAT) applicable to such companies,” she said.
Sitharaman’s announcements and the GST council’s meeting comes at a time when India’s annual economic growth fell to a 25-quarter low of 5% in the April-June period.