EFFECTIVE TAX BURDEN ON INDIAN CORPORATES-A NEW APPROACH FOR INDIA
KARAMPAL NARWAL
Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, India.
TANVI . *
Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, India.
*Author to whom correspondence should be addressed.
Abstract
The paper seeks to analyze the determinants of effective tax burden on Indian corporates in India with a different approach. This paper is an empirical study using the sample of 4232 corporates listed in BSE (Bombay Stock Exchange) in India taken for the period of 2001-2015. Data are collected from CMIE (Centre for Monitoring Indian Economy). The OLS (Ordinary least square) and Quantile regression both are used for comparing the effectiveness of both statistical techniques. The findings of the paper are: Different factors size, profitability, capital intensity, inventory intensity, leverages and research and development intensity have significant association with effective tax burden on corporates. Employment of Quantile regression is more justified than previously used linear regression in this connection.
Keywords: Corporate tax, corporate effective tax rate, effective tax burden, OLS, Quantile regression, India