104 105
7.
Income taxes (continued)
(a)
Income tax expense (continued)
In financial year 2015, the corporate tax rate applicable in India has remained constant at 33.99%. The corporate
tax rate applicable to the subsidiaries in India will be increased to 34.61% for the financial year 2016 onwards and
deferred tax assets and/or liabilities of the Group are based on the rates applicable then.
Tax incentives comprise tax holiday benefit available for Indian entities where investment properties are located in
the notified industrial park and/or special economic zones.
Dividend distribution tax is levied on any dividend payments by the subsidiaries in India while withholding tax is
payable by the subsidiaries in India on interest payments made to the intermediate holding companies in Singapore.
Minimum Alternate Tax (“MAT”)
Under the Indian income tax law, MAT will be payable only where tax liability, as computed is less than 20.96%
(2014: 20.96%) of the book profits in the profit or loss account and after making certain specified adjustments.
Further, in view of amendments made in Finance Act, 2009, MAT paid in respect of assessment years 2006-07 and
onwards in excess of tax payable under other provisions of Indian income tax law, being a MAT credit, will be allowed
for carry forward and set-off for a period of 10 years. Set-off of MAT credit is allowed in a particular year on the
difference between the tax liability under normal provisions and tax liability under MAT provisions for such years.
(b)
Movements in current income tax recoverable
Group
2015
2014
$'000
$'000
Balance at beginning of financial year
9,260
13,696
Tax charge for the year
(14,980)
(14,446)
Over provision in respect of prior years
73
8
Arising from acquisition of subsidiary
(30)
–
Tax paid during the year (net)
3,106
2,042
Tax deducted at source
9,246
9,229
Translation differences
316
(1,269)
Balance at end of financial year
6,991
9,260
