Please Share:: 
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
PHARMACEUTICALS
BUDGET HIGHLIGHTS & IMPACT
n SEZ is brought under MAT
Impact: Under the existing provisions of section 115 JB (6) of income tax act,
exemption was allowed from payment of MAT on book profits in respect of
income earned from special economic zone (SEZ). The government has removed
this exemption w.e.f 1st April 2011. This will increase effective tax rates for
companies. We believe this is negative for the sector especially for the currently
companies operating under SEZs.
Government has increased the MAT rate on one hand from 18% to 18.5%
but on the other hand has reduced the surcharge from 7.5% to 5%. Hence
effective tax rate remains the same.
n Excise duty on Pharma formulations will go up to 5% from 4%.
Impact: This could be marginally negative for the sector as pass through would
be difficult in the highly competitive environment.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
PHARMACEUTICALS
BUDGET HIGHLIGHTS & IMPACT
n SEZ is brought under MAT
Impact: Under the existing provisions of section 115 JB (6) of income tax act,
exemption was allowed from payment of MAT on book profits in respect of
income earned from special economic zone (SEZ). The government has removed
this exemption w.e.f 1st April 2011. This will increase effective tax rates for
companies. We believe this is negative for the sector especially for the currently
companies operating under SEZs.
Government has increased the MAT rate on one hand from 18% to 18.5%
but on the other hand has reduced the surcharge from 7.5% to 5%. Hence
effective tax rate remains the same.
n Excise duty on Pharma formulations will go up to 5% from 4%.
Impact: This could be marginally negative for the sector as pass through would
be difficult in the highly competitive environment.
No comments:
Post a Comment