Govt. Slashes Corporate Tax on Domestic Companies

Union Finance Minister Nirmala Sitharaman on Friday announced the slashing of corporate tax on domestic manufacturing companies. The announcement came ahead of the GST council meet scheduled in Goa today.

Sitharaman saidthat ordinance to slash corporate tax rates for domestic companies has beencleared by the Cabinet.

The governmenthas announced a series of steps to provide a fillip to growth in the past fewweeks which have fallen to six-year low of 5% in June quarter.

The governmenthad announced a series of measures on last week to revive the housing sectorand boost exports. The finance minister on Thursday urged the banks to increaselending to small businesses and retail borrowers to spur spending ahead of thefinal quarter festive season.

In a pressconference held at Goa, the finance minister said that any domestic companygets an option to pay income tax at a rate of 22% subject to condition thatthey will not avail any incentive. "Enhanced surcharged introduced in Budgetshall not apply on capital gain arising on sale of equity shares in a companyliable for Securities Transaction Tax," said Sitharaman.

The 37thmeeting of the GST Council, which also comprises of representatives of allstates and Union Territories, will take place in Goa amid fall in economicgrowth, which has hit a six-year low of 5% for the first quarter of the currentfiscal.

The GSTCouncil may consider introduction of a special composition scheme for taxpayerssupplying brick kilns, sand mining activities and stone crushers with anincreased rate, sources said.