One Pvt. Ltd. Company has declared final dividend for the financial year 2012-13 in the Board Meeting held on 5-04-2013 i.e. in the year 2013-14. My question is what rate of DDT is applicable to company( rate applicable for the year 2012-13 or 2013-14).
The Domestic Companies are requirec to pay the Dividend Distribution Tax u/s 115 - O on the amount of dividend declared, distributed or paid by it.
The tax on distributed profit shall be paid within 14 days from the date of -
a. declaration of any dividend b. distribution of any dividend; or c. payment of any dividend whichever is the earliest.
The provisions of the Finance Bill will come into effect w.e.f. 01/04 except in certain specific provisions where the provisions proposed in the budget will be effective from any other date usually 01/06.
In your case, the earliest point will be the date of declaration of dividend by the Board of Directors at their meeting held on 05/04/2013. Hence, DDT will as applicable for AY 2014-15.