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I have a question:
If their is a company and it has 4 subsidaries so the lower and upper limit is reduced accordingly:
0-75
76-375
>375
And i have to calculate the corpration tax idividually for each company, so their is one company whose trading profit is 300,000 and so its in the marginal rate company its obvious.so the question is how can you regard this company with 300k a small company ? and its tax installment would be after 9 months if its small. Means how can i say its small i-e only because its coming in the MR rate i should regard this small company and its tax installment should be one lump sum after 9 months ?
(For large companies its 4 installments)Kindly answer me.
Hi and firstly apologies for not being able to look at your query until now. The first point to note is that if a company had 4 subsidiaries there would be five associated companies not 4!!! Do not forget to count the parent company itself! If in your example we therefore assume that the parent company has 3 subs then your revised profit limits are now correct and a company with an Augmented Profit (not just trading profit!) of 300K is a marginal company not a small company as its profits fall between the lower and upper limits. No Quarterly Instalment Payments (QIP) would therefore be required and its tax would be due as normal 9 months and one day after the end of the accounting period.
QIP’s are only required where a company has firstly become large in the current period (say y/e 31 March 2013) and is estimating that it will also be large for the next accounting period (y/e 31 March 2014). QIP’s will then be due for the y/e 31 March 2014 not y/e 31 March 2013!
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