Benefit Of Corporate Tax Rate Cut For India Inc To Boost ECONOMY 

Sectors	Scope for localization and price reductions in select sectors
Automotive OEMs	Can potentially pass on the benefit of  lower tax rates to customers in the form of price revisions or discounts in order to revive demand given the  sharp slowdown
Auto-ancillary	The revision augurs well; sector will see a direct sharp reduction in tax outgo. However, the benefits could be largely passed on to OEMs. The 15 per cent tax rate announced for new entities increases the viability of localisation of components, and new JVs, especially in the space of electric vehicles and their components are likely to be set-up
Building materials	Would be a major beneficiary. Materials including paint, plywood, ceramic tiles etc. are expected to undergo a downward price revision. This would also reduce the benefit of organised players and reduce the gap in pricing with unorganised players
FMCGs	The range of tax-saving gains varies across different companies. This opportunity can be used by the companies to increase promotional activity and gain market share
Consumer durables	One of the major beneficiaries. Organised players expected to gain market share vis-à-vis unorganised players with scope for savings being passed on to customers by way of increased promotional activities
Oil and Gas	The tax cut will improve net profits of companies as most were paying tax close to peak rates. However, few companies who have investment-linked exemptions will not benefit much as existing rates are lower than 25.17 per cent. These may continue with existing tax structures until tax breaks are exhausted
Information Technology	Given that the domestic tax rates applicable to IT companies are already low because most of them operate in SEZs, which offer tax benefits over a prolonged period. As such, the benefit would be minimal
Pharmaceuticals	The impact is not expected to be material as the sector already enjoys a host of tax exemptions such as income tax exemptions for EOUs or entities operating in SEZs and; GST linked benefits from operating in tax-free zones. However, specific companies enjoying lower rates due to MAT applicability will benefit as MAT rates have been reduced to 15 per cent from 18.5 per cent http://www.businessworld.in/article/Benefit-Of-Corporate-Tax-Rate-Cut-For-India-Inc-To-Boost-Incremental-Investments-ICRA/27-09-2019-176825/