What is Minimum Tax?
Minimum Tax is the amount of tax that should be paid , irrespective of
All business individuals and association of persons having ten million (One Crore) annual turnover / Sales , and all companies are liable to pay minimum tax of “One Percent (1%)” on the turnover of the tax year. For the purpose of payment and calculation of minimum tax following things shall not be taken in account
(a) Loss for the year
(b) the setting off of a loss of an earlier year
(c) exemption from tax
(d) (d) the application of credits or rebates; or
(e) the claiming of allowances or deductions (including depreciation and amortization deductions
For all persons and companies involved in provision of services tax deducted by customers shall be considered minimum tax.
For the purpose of minimum tax , turnover means
(a) gross sales or gross receipts, exclusive of Sales Tax and Federal Excise duty or any trade discounts shown on invoices,
(b) the gross fees for the rendering of services for giving benefits including commissions; except covered by final discharge of tax liability for which tax is separately paid or payable;
(c) the gross receipts from the execution of contracts