Dividend

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2012 hi sir/madam,

please advice me on whether dividend paid by an indian company to non-resident (foreign) share holder is subject to tax in india.
please.....

CA Salman Mansoori

CA Salman Mansoori (Expert)
Follow

24 January 2012 YES IT WOULD BE LIABLE TO DDT AS THE FOREIGN RESIDENT IS HAVING THE INCOME FROM INDAIN COMPANY. SINCE THE SAID DIV IS A RESULT OF INCOME ACCRUED IN INDIA HENCE IT COMES UNDER THE AMBIT OF TAXATION IN INDIA. IRRESPECTIVE OF THE RESIDENTIAL STATUS OF THE RECEIPENT.. REFER SEC 9 OF HE INCOME TAX ACT

CA Salman Mansoori

CA Salman Mansoori (Expert)
Follow

24 January 2012 YES IT WOULD BE LIABLE TO DDT SINCE THE SAID INCOME HAS A SOURCE FROM INDIA IRRESPECTIVE OF THE RESIDENTIAL STATUS OF THE RECEIPENT. REFER SEC 9 OF THE INCOME TAX ACT 1961

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

24 January 2012 Dividend paid by an Indian Company is a Dividend as referred to in Section 115-O , is exempt from tax vide Section 10(34) for all the assessees.
.

Vide sub-section Section 115C(c) , it is not treated as Investment Income even though it may be arising due to investment made in foreign exchange.

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2012 thanks sir