Corporation tax

Corporation tax (corporate tax) is a tax on company profits and is administered as a central tax; it is listed among direct taxes collected by the Union government [1]. Official statements by the Union confirm that corporation tax is a Central tax collected by the Union [2]. However, corporation tax forms part of the divisible pool of Union taxes whose net proceeds are shared between the Centre and the States under the constitutional distribution mechanism (Article 270) on the Finance Commission’s recommendations; thus its yield is apportioned between the Union and States rather than belonging exclusively to the Centre [3].

Sources

1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 5: Indian Tax Structure and Public Finance > It is levied on profits earned by companies. For taxation purpose, a company is treated as a separate entity, and thus, it must ٠ pay a separate tax different from the personal income tax of its owner. Companies (both public and private) which are registered in India under the Companies (Amendment) Act, 2019 are liable to pay corporate tax. Presently, corporate tax rate is 25% for domestic corporations with gross turnover up to ₹250 crore. For >₹250 crore turnover, tax rate is 30%. > p. 87
2. [2] https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1703238
3. [3] https://www.thehindu.com/news/national/on-financial-devolution-among-states-explained/article67872209.ece