Cross check taxes paid in income statement with taxes paid in cash flow statement. If taxes are paid at the usual 33% +/- few bps then it is not a problem. If there are variations we need to dig into further as to what is the reason. I usually start this way as if there are differences i try to find out is there any particular reason like SEZ or plant in a tax free zone. Then how much more time till the exemption stays. Usually the tax rate difference is the trigger. Apart from this commercial softwares for fundamentals can also help to screen companies with a lower tax rate
| Subscribe To Our Free Newsletter |
