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Software isn’t manufacturing, won’t be eligible for 15% tax rate
The amendment comes after industry sought clarity on whether software development could be treated as manufacturing and be eligible for the reduced tax rate. On September 20, FM Sitharaman slashed the corporate tax rate to 22% for companies that do not seek exemptions or incentives, and to 15% — from the current 25% — for new manufacturing companies.
By Deepshikha Sikarwar, ET Bureau |Updated: November 18, 2019, 07.11AM IST
NEW DELHI: Software development is not manufacturing and will not be eligible for the 15% tax rate applicable to new manufacturing entities, a government official said. The government will table a Bill in Parliament in the upcoming winter session to clarify this and other related matters. The Bill will replace its earlier ordinance in September. "The amendment Bill
or integral structure. Only new manufacturing companies are eligible for the revised rate. The provision excludes entities formed by splitting up or reconstructing a business already in existence. An exception, however, has been provided for natural or man made calamities, riots and fire that require an entity to be re-established, reconstructed or revived on or after October 1.
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