Software isn’t manufacturing, won’t be eligible for 15% tax : 19-11-2019

Software development is not manufacturing and will not be eligible for the 15% tax rate applicable to new manufacturing entities, a government official said.The government will table a Bill in Parliament in the upcoming winter session to clarify this and other related matters. The Bill will replace its earlier ordinance in September.”The amendment Bill will clarify that 15% corporate tax rate is only for new manufacturing entities and that software development is not manufacturing,” the official, who is privy to the development, told ET.The amendment comes after industry sought clarity on whether software development could be treated as manufacturing and be eligible for the reduced tax rate. 72101556 On September 20, finance minister Nirmala Sitharaman slashed the corporate tax rate to 22% for companies that do not seek exemptions or incentives, and to 15% — from the current 25% — for new manufacturing companies.

Source : PTI