Investor Presentaiton
Other development-
Change in the Corporate Tax rate
New Income tax Provision
Maximum Marginal Tax Rate to reduce from
34.94%¹ to 25.17%¹ with No tax incentives & MAT
Effective MAT Tax rate to reduce from
21.55% to 17.47%1
New Tax Rate Option:
✓
25.17% with No MAT and No tax incentives
MAT rate of 17.47%1 with existing tax rate of 34.94%1
Tax Rate of New Manufacturing Co: 17.16%¹
Tax optimization strategy :
✓ Cash outflow as against charge to P&L
✓ Availability of current & likely exemption and
incentives to a Company
✓ Applicability of MAT and unused MAT Credit
UltraTech Position
FY19 Tax Rate:
Current Tax
Deferred Tax
Effective Tax Rate
FY19
21%
11%
31%
■ FY19 Actual Cash outflow @ 21%
■ In the new regime cashflow @ 17.5%1
due to lower MAT, resulting saving
-
of 4% cashflow. Effective charge
in P&L to continue @ 31%
Likely higher cash outflow with new
lower tax rate.
Company has over Rs. 1400 crores
unused MAT credit as on March'19
Continuous evaluation of both the option factoring cash outflow benefit
Including Surcharge (12% on existing rate and 10% on new rate) + Cess (4%)
UltraTech Cement Limited 12View entire presentation