Reliance Industries yet to decide on adoption of newer rate of corporate taxation

The only change the company have done is to the extent that MAT rate drops from 18.5 to 15 as far as RIL's current tax calculation is concerned.

Published: 18th October 2019 10:26 PM  |   Last Updated: 18th October 2019 10:26 PM   |  A+A-

Reliance Industries MD Mukesh Ambani

Reliance Industries MD Mukesh Ambani (File Photo | EPS)

By PTI

MUMBAI: Country's largest corporate Reliance Industries (RIL) is yet to decide on whether to adopt the newer rate of corporate taxation or continue with the older one, a senior official said on Friday.

"In the results announced for the September quarter, it has only reduced the Minimum Alternate Tax (MAT) to 15 per cent from the earlier 18.5 per cent," its joint CFO V Srikanth told reporters here. The government had last month slashed the corporate tax by ten percentage points, under which the effective outgo for companies will come down to 25.17 per cent.

ALSO READ| Reliance Industries Q2 net profit jumps 18 per cent to record Rs 11,262 crore

However, companies will have to give up on tax incentives enjoyed by it otherwise if they decide to make the switch. "We have not elected whether we will be going to option A or option B, as you know we have time to decide. The only change we have done is to the extent that MAT rate drops from 18.5 to 15 as far as RIL's current tax calculation is concerned," Srikanth told reporters here.

He said that the company has time till December to decide on the same and will do so in due course. Srikanth said that the effective rate of taxation for its telecom and retail arms stay at the same level of 35 per cent.

At the consolidated level, the tax outgo has come down to 21 per cent including the tax before net profit and the deferred tax for September from the 25 per cent in the preceding quarter, and this reflects the change only in the MAT, he said.

ALSO READ| Reliance Industries becomes first Indian company to hit Rs 9 lakh crore market capital mark

"If you look at the number - that is current tax, plus deferred tax on profit before tax for the second quarter was about 21 per cent, which was 25 per cent in Q1. This only reflects the fact that the MAT has come down," Srikanth said.

At a consolidated level, the company reported an outgo of Rs 2,065 crore for the September 2019 quarter as against Rs 2,917 crore in the year-ago period.

Stay up to date on all the latest Business news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp