Dual Taxation:
This is my favorite topic and unforgettable one too. Let me tell you why I never forget this? This is the question asked by Sridhar to me. I was simply blinking when he asked me this question. After a minute he explained me what it is.
Dual taxation is also called as double taxation, where the company will be paying 2 taxes to the Government. Under two cases the company will be paying tax.
1. Profit while earning and the other one
2. Dividend awarded by the company to its share holders.
How can a company avoid it?
We can avoid it by showing a less profit earned.
But in my point of view, instead of running a firm where IT and ITES companies are well-developed one should run their company in SEZ area (Special Economic Zone) where any company will be enjoying all the benefits.
WOW, are IT and ITES enjoying?
Nopes, even EXIM enjoys a lot equivalent to IT and ITES companies specially in SEZ.
My simple advice is to run a company in SEZ mainly to avoid Tax.
Charu
This is my favorite topic and unforgettable one too. Let me tell you why I never forget this? This is the question asked by Sridhar to me. I was simply blinking when he asked me this question. After a minute he explained me what it is.
Dual taxation is also called as double taxation, where the company will be paying 2 taxes to the Government. Under two cases the company will be paying tax.
1. Profit while earning and the other one
2. Dividend awarded by the company to its share holders.
How can a company avoid it?
We can avoid it by showing a less profit earned.
But in my point of view, instead of running a firm where IT and ITES companies are well-developed one should run their company in SEZ area (Special Economic Zone) where any company will be enjoying all the benefits.
WOW, are IT and ITES enjoying?
Nopes, even EXIM enjoys a lot equivalent to IT and ITES companies specially in SEZ.
My simple advice is to run a company in SEZ mainly to avoid Tax.
Charu