Service Tax: 12%, the effective rate of service tax is 12.36% (including the education cess at the rate of 3%). It applies to more than 100 services. For details visit the web site: Service Tax.
Excise Duty: 8% (on drugs, pharmaceuticals, cans, paper, Water filtration and purification devices, etc), 12% (small cars, packaged software), 14% (cement) and 24%.
For further information consult the Central Board of excise and Customs.
- A 100% deduction for interest payments on borrowed capital,
- Capital expenditure on research conducted in-house and for payments made for scientific research to specified organizations,
- Interest, royalties and fees paid outside of India to overseas affiliates or in India to a non-resident provided tax as required is withheld,
- Payments to employees under voluntary retirement schemes may be deducted over five years,
- Business losses (conditions apply).
Indian tax law does not permit companies to take a deduction for a general bad-debt reserve, although specific bad debts may be deducted when written off. For additional information, consult India Tax Deduction on mapsofindia.com.
A Minimum Alternate Tax (MAT) is imposed at 18.5% or 19.467% (with surcharge, basic rate of 18% plus the surcharge of 5% and the cess of 3%) of adjusted book profit. The surcharge applies only if the book profit exceeds INR 10 million.
A ‘fringe benefits tax' of 30% is imposed on the value of fringe benefits that companies provide or are deemed to provide to their employees.
|India||South Asia||United States||Germany|
|Number of Payments of Taxes per Year||33.0||30.0||11.0||9.0|
|Time Taken For Administrative Formalities (Hours)||243.0||311.0||175.0||207.0|
|Total Share of Taxes (% of Profit)||61.8||40.2||46.7||46.8|
Source: Doing Business - Last Available Data.
|Taxation Income (INR)||Progressive Tax Rate up to 30%|
|Less than 200,000||0%|
|200,001 – 500,000||10%|
|500,001 – 1,000,000||20%|
|1,000,001 and above||30%|
|Above 10,000,000||One-time surcharge of 10%|
|An education cess of 3% is levied on the tax payable.||The maximum marginal tax rate on annual income is effectively 30.9% (30% + 3% education cess).|
|Type of property and law||Validity||International Agreements Signed|
Patent Cooperation Treaty (PCT)
Trade Marks Act, 1999
|10 years, renewable every 10 years with a grace period of 6 months for renewal.||
Trademark Law Treaty
Designs Act, 2000
|10 years, renewable for another 5 years.|
60 years, varies for different works.
Berne convention For the Protection of Literary and Artistic Works
Convention for the Protection of Producers of Phonograms Against Unauthorized Duplication of Their Phonograms
Rome ConventionFor the Protection of Performers, Producers of Phonograms and Broadcasting Organizations
WIPO Copyright Treaty
WIPO Performances and Phonograms Treaty
Semi-Conductor Integrated Circuits Layout-Design Act,2000
|10 years, non-renewable.|
The country also has separate personal law codes for Muslims, Christians, and Hindus.
For more details consult www.bis.org.in.
|New Year's Day||1st January|
|Idu'z Zuha / Bakrid (Muslim festival)||Dec/Jan, changes according to the year.|
|Republic Day||26th January|
|Mahashivratri (Hindu festival)||Feb/March, changes according to the year.|
|Mahavir Jayanthi (Hindu festival)||Feb/March, changes according to the year.|
|Holi (Festival of Colors) and Phagwah Hindu Festival||March, changes according to the year.|
|Milad-Un-Nabi (Birth of the Prophet Mohammed)||April/May, changes according to the year.|
|Good Friday||April, changes according to the year.|
|Buddha Purnima (Hindu festival)||May, changes according to the year.|
|Independence Day||15th August|
|Janmashtami (Birthday of Lord Krishna of Hindus)||Sep, changes according to the year.|
|Mahatma Gandhi's Birthday||2nd October|
|Id ul Fitr (End of Ramadan)||Oct, changes according to the year|
|Dussehra (Vijaya Dashami, a Hindu Festival)||Oct, changes according to the year|
|Deepavali or Diwali (Festival of Lights, a Hindu Festival)||Nov, changes according to the year|
|Guru Nanak's Birthday (A Sikh festival)||Nov, changes according to the year|
|Christmas Day||25th Dec|
|Note: Only the secular holidays of Republic Day, Independence Day and Mahatma Gandhi's Birthday are universally observed. Other public holidays in India tend to be observed on a strictly regional basis.|
|Deepavali||2-3 days, Deepavali generally falls in the month of November|
|New Year||1-2 days on 31st Dec and 1st Jan|
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Last Updates: October 2014