A corporate tax is a levy on a company's profit by the government. The money collected in the form of corporate taxes is used as a country's source of income. A company's operating income is calculated by deducting expenses, including the cost of goods sold or services procured and depreciation from revenues. Next, applicable tax rates are applied to create a legal obligation that the company owes the government.
Corporate tax is levied on the companies, whether domestic or foreign. In India, the Income Tax Act, 1961 governs the provisions of charging corporate tax to companies. Global income of the companies registered in our country is covered for taxation under this. Whereas in the case of foreign companies, only the income received or accrued in India is taxable under the corporate tax. MAG is leading corporate tax experts in Delhi.
