BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a tax that is payable from all taxable profits of any company
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a tax on earnings and self-employed profits
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a tax levied directly on personal income
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a tax set by local authorities to meet their budget requirement
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Detailed explanation-1: -A corporate tax is a tax on the profits or net income of a corporation. Corporate tax is paid on a company’s taxable income which includes company’s revenue after deductions such as cost of goods sold (COGS), general and administrative (G&A) expenses, selling and marketing, depreciation, research & development etc.
Detailed explanation-2: -Corporation Tax or Corporate Tax is a direct tax levied on the net income or profit of a corporate entity from their business, foreign or domestic. The rate at which the tax is imposed as per the provisions of the Income Tax Act, 1961 is known as the Corporate Tax Rate.
Detailed explanation-3: -A domestic corporate entity with a turnover upto Rs. 250 Crore, pays a flat rate of 25% corporate tax. For a particular financial year, if the total revenue earned by a company exceeds Rs. 1 crore, then a surcharge corporate tax of 5% is levied on such a corporation.
Detailed explanation-4: -Definition: Corporation tax is a tax imposed on the net income of the company. Description: Companies, both private and public which are registered in India under the Companies Act 1956, are liable to pay corporate tax.
Detailed explanation-5: -Corporation tax is a direct tax imposed on the net income or profit that enterprises make from their businesses. Companies, both public and privately registered in India under the Companies Act 1956, are liable to pay corporation tax.