What are the basic Tax Rates applicable to Private Companies operating in India?
As such there are not specific tax rates for foreign owned private limited Company , Once a Foreign Company has formed a Private Company in India it become an Indian Private Limited Company under the Companies Act 2003, and all the tax rates as applicable to Indian company would apply. Summary of the taxes are below:-
Type of Tax Rates Description
Income Tax 30% Paid on the net profit earned During the year.
Dividend 20% Paid by companies in case of Distribution of profits as
Distribution Tax dividend.
Value added Tax 0% – On sale & purchase done within state, rate depends
(VAT) 12.5% on product.
Central Sales Tax 2% On the sale & Purchase done between two states..rate
(CST) depends on product.
Central Excise 1% – 14% Paid on Manufacturing of Goods, or any process does
Duty which amounts to emerging of new product.
Service Tax 14% For services sector or providing services to customers
Custom Duties Wide Custom duty is charges when the goods are imported
range in India, The tax rates varies from product to product