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Last Updated : Jan 24, 2018 11:14 AM IST | Source: NEWS18.com

What if Baba Ramdev's Patanjali was not an NGO and paid corporate tax?

Baba Ramdev’s mega fast moving consumer goods (FMCG) firm, Patanjali recently collaborated with e-commerce platforms to expand the reach of its products.

Patanjali
Patanjali

Baba Ramdev’s mega fast moving consumer goods (FMCG) firm, Patanjali recently collaborated with e-commerce platforms to expand the reach of its products. The Yoga guru also declared his plan to continue Patanjali as a non-governmental organization (NGO). However, what if Patanjali was a regular company that falls under the ambit of corporate tax?

Corporation tax is a tax levied on the net income of the company. Businesses, both private and public, which are registered in India under the Companies Act 1956, are liable to pay corporate tax currently pegged at 30%. Finance Minister Arun Jaitley in his last Union Budget talked about lowering corporate income tax to 25% in a span of four years for companies registering annual revenue of Rs 50 crore or less. The announcement is yet to be put in practice.
 Founded in 2006, Haridwar-based Patanjali Ayurved clocked an annual revenue of Rs 10,561 crore in the financial year end of March 2017. Revenue registered for the financial year 2015-16 was Rs 5,000 crore and Rs 2,007 for the fiscal before that.

First Published on Jan 24, 2018 11:14 am
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