#

Ease of Doing Business in

India

India Download Profile (2183.1KB, pdf)
Region South Asia
Income Category Lower middle income
Population 1,311,050,527
GNI Per Capita (US$) 1,590
City covered Mumbai, Delhi

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 130 131 up
1
55.27 53.93 down
1.34
Starting a Business 155 151 down
4
74.31 73.74 up
0.57
Dealing with Construction Permits 185 184 down
1
32.83 32.83
-
Getting Electricity 26 51 up
25
85.09 79.76 up
5.33
Registering Property 138 140 up
2
50.00 49.97 up
0.03
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 13 10 down
3
73.33 73.33
-
Paying Taxes 172 172
-
46.58 43.17 up
3.41
Trading across Borders 143 144 up
1
57.61 56.45 up
1.16
Enforcing Contracts 172 178 up
6
35.19 32.41 up
2.78
Resolving Insolvency 136 135 down
1
32.75 32.59 up
0.16

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

Viewing the data for

DB 2017 DTF (% points): 46.58

DB 2016 DTF (% points): 43.17

Change in DTF (% points): up3.41

Indicator Mumbai South Asia OECD high income
Payments (number per year) info_outline 25.0 31.8 10.9
Time (hours per year) info_outline 241.0 283.9 163.4
Total tax rate (% of profit) info_outline 60.6 40.9 40.9
Postfiling index (0-100) info_outline 4.3 38.8 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Employee's state insurance contribution 4 online 4.75% gross salaries 4.64
Dividend tax 1 16.995% dividend distributions 3.98
Corporate income tax 1 online 45 30% taxable profit 20.93
Social security contributions 12 91 13.61% gross salaries 15.35
Central Sales Tax 1 online 105 2% purchase price 14.14
Property tax 1 10% assessed value 1.32
Tax on insurance contracts 1 12% * (1+ 2% Education cess + 1% Secondary & High education cess) insurance premium 0.26
Vehicle tax (pollution tax) 1 INR 200 fixed fee per vehicle 0.01
Tax on interest 0 withheld 10% interest income 0.00 included in other taxes
Fuel tax 1 fuel consumption 0.00 small amount
State VAT 1 online 12.5% value added 0.00 not included
CENVAT (Excise Duty) 1 online 12.5% value added 0.00 not included
Income surcharge 0 jointly 10% on applicable federal taxes 0.00 included in other taxes
Education cess 0 jointly 2% all federal taxes including the surcharge 0.00 included in other taxes
Secondary & Higher education cess 0 jointly 1% all federal taxes including the surcharge 0.00 included in other taxes
Employee paid - Social security contributions 0 jointly 12% + 1.75% gross salaries 0.00 withheld
Totals: 25.0 241.0 60.6
  • Taxes by type Answer
    Profit tax (% of profit) 20.9
    Labor tax and contributions (% of profit) 20.0
    Other taxes (% of profit) 15.7
    Answer Score
    Postfiling index (0-100) 4.3
    VAT refunds 0.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission monthly
    Does a VAT/GST refund process exist per the case study? No
    Restrictions on VAT refund process CENVAT: restricted to international traders and others VAT: carry forward until the end of the fiscal year (March)
    Likelihood of VAT audit N/A
    Time to comply with VAT refund (hours) N/A 0.0
    Time to obtain a VAT refund (weeks) N/A 0.0
    Corporate income tax audits 3.7
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Likely
    Time to comply with a corporate income tax audit (hours) 54.0 3.7
    Time to complete a corporate income tax audit (weeks) 27.7 13.4
    Administrative appeal process
    First level administrative appeal authority Commissioner of Income Tax (Appeal)
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines Online/in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? No
    Legal time limit N/A

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.