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Corporate Tax Interview Questions & Answers - Learning Mode
COOLINTERVIEW.COM TAX INTERVIEW QUESTIONS CORPORATE TAX INTERVIEW QUESTIONS QUESTIONS & ANSWERS - LEARNING MODE

Corporate Tax Interview Questions & Answers - Learning Mode

A corporate tax is a levy placed on the profit of a firm to raise taxes. After operating earnings is calculated by deducting expenses including the cost of goods sold (COGS) and depreciation from revenues, enacted tax rates are applied to generate a legal obligation the business owes the government. A corporate tax, also called corporation tax or company tax, is a tax on the income or capital of corporations or analogous legal entities. Many countries impose such taxes at the national level, and a similar tax may be imposed at state or local levels. The taxes may also be referred to as income tax or capital tax. The Corporate Tax Rate in India stands at 34.61 percent. Corporate Tax Rate in India averaged 35.02 percent from 1997 until 2015, reaching an all time high of 38.95 percent in 2001 and a record low of 32.44 percent in 2011. Corporate Tax Rate in India is reported by the Ministry of Finance, Government of India.

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Corporate Tax Interview Questions & Answers - Learning Mode
Try Corporate Tax Interview Questions & Answers - Exam Mode
Question: What is meant by a Corporate?

Answer: Any juristic person having a separate and independent legal entity from its shareholders is termed as a corporate. The income earned by a company is computed and assessed separately from the dividends that it offers to its shareholders. These dividends do not figure out in the tax calculation of the company but are assessed as part of the income of shareholder.

For the purpose of tax calculation, companies in India have been broadly divided into the following two categories.

Do Source: CoolInterview.com
Question: What is Corporate Tax?

Answer: A Corporate Tax, also called corporation tax or company tax, is a tax on the income or capital of corporations or analogous legal entities. Many countries impose such taxes at the national level, and a similar tax may be imposed at state or local levels. The taxes may also be referred to as income tax or capital tax.

Corporate tax is a form of tax levied on profits earned by businessmen in a particular period of time. Various rates of corporate taxes are levied for different levels of pro Source: CoolInterview.com
Question: How Corporate Tax is levied in India?

Answer: Corporate tax in India is levied on both domestic as well as foreign companies. Like all individuals earning income are supposed to pay a tax on their income, business houses too are supposed to pay as tax a certain portion of their income earned. This tax is known as corporate tax, corporation tax or company tax. Source: CoolInterview.com
Question: What is Corporate Tax Planning?

Answer: Corporate tax planning can be understood as strategizing one?s financial business affairs in such a way so as to maximize profit and minimize payable tax by taking into account the allowed benefits of deductions, rebates and exemptions. Tax management is a risky as well as tricky business and most corporates that have a huge money at stake involve financial experts to take care of their taxation process. In India also there are various financial players that provide consultation and implementati Source: CoolInterview.com
Question: What are the Corporate Tax rebates applicable in India?

Answer: Apart from various types of taxes levied on company income, there are several provisions of tax rebates available to companies. A list of all these rebates is detailed below.

In certain cases, domestic companies can deduct dividend received from other domestic companies
Special provisions are applicable to venture fund and venture capital enterprises
Deductions, in some cases are allowed for exports and new undertakings
New infrastructure and power sources set-up Source: CoolInterview.com
Question: What are various categories of Corporate Taxes?

Answer: The corporation tax rates can be divided into following categories:-

Basic Corporate tax rate levied on net profit.
Surcharge levied on tax calculated by basic corporate tax rate.
Educational Cess @ 1% levied on (Basic Corporate tax + Surcharge)
Secondary & Higher Education Cess @2% levied on (Basic Corporate tax + Surcharge)
Minimum Alternative Tax (MAT) is levied if the Basic corporate tax is less than MAT. In other words, if tax paid as per basic rate is Source: CoolInterview.com
Question: What is Corporate Tax Rate for Foreign Companies in India?

Answer: A foreign company means an enterprise that has operations and origin in any other country except India. The taxation rules are not as simple for foreign enterprises as for domestic businesses. Corporate tax on foreign companies depends a lot on the taxation agreements made between India and other foreign countries. For example, corporate tax on an Australian company in India will depend upon the taxation agreement between the governments of India and Australia. Source: CoolInterview.com
Question: What is meant by Income of a Company?

Answer: In order to compute corporate tax on the income of a company it is necessary to first learn what all factors make up the total income of any company.

Profits from business
Income from property
Capital gains
Income from other sources such as foreign dividends, interests etc. Source: CoolInterview.com
Question: What is Corporate Tax Rate for Domestic Companies in India?

Answer: A domestic company in India refers to any enterprise that has its base location in India and is of Indian origin. Given below is the tax rate applicable to domestic businesses in the country.

A flat rate of 25% corporate tax is levied on the income earned by a domestic corporate.
A surcharge of 5% is levied in case the turnover of a company is more than Rs.1 Crore for a specific financial year.
3% educational cess is levied.
Corporate tax is also levied on the glo Source: CoolInterview.com

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