HCL TECH-

TAXATION

By
Harsha Vardhan 2016H149229P
Dhawal Mohan Tripathi 2016H149228P
 HCL
HCL

INFO
TECHNOLOGIES HEALTHCARE TALENTCARE
SYSTEMS
Taxation of Corporates in India
HCL Tax Structure
HCL earns revenue from following categories
Profits from business
Income from property
Capital gains
Income from other sources such as foreign dividends, interests etc.
Dividend Distribution Tax (DDT)
Capital Gains

Fringe Benefit Tax (FBT)

Securities Transaction Tax (STT)
HCL Tax Structure
Company Domestic
Fixed tax 25%
Surcharge * ( if turnover is more than 1 Tax percentage of HCL Tech
5%
crore )
Education cess 3%
18% 19%
15% + 7.5% surcharge 17% 18%
Dividend Distribution Tax + education cess of 3%
30% of the value of
benefit provided by
Fringe Benefit Tax (FBT) company
7%
Securities Transaction Tax (STT) (0.017/0.125/0.01)*
Short-term capital assets-listed equity
shares and units of equity oriented 15%
funds. 2011 2012 2013 2014 2015
Long-term capital assets- listed
10%
securities
 Comparison
TCS was expected to be around 23%
Infosys it was pegged at 28%
HCL Technologies around 19%.
Notably, for Tech Mahindra, the FY17
expected tax rates were at 26%

For the industry overall, the effective

corporate tax rate was 23.22%.

Source: www.business-standard.com
GST impact on
HCL Tech
GST impact on HCL Tech

GSTbeing a destination based tax would reduce the tussle amongst the origin state and the
destination state, often seen to be warring to appropriate the same tax transaction.

GSTwould also put to rest the ambiguity surrounding the treatment of intangibles such as
software and the concept of dual levy of taxes
 Impact of taxation on the
Performance
Hypothesis:

Ho Positive relation between the taxation and the financial performance

of HCL Tech.

H1 No relation between the taxation and financial performance of HCL

Tech.

Conclusion:
As the P value is lower than 0.05 we can conclude our null hypothesis is wrong and no relation
exists between the financial performance and the taxation on HCL tech.
Thank You
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