CA. sanjeet Kumar Ojha (Chartered Accountant) (272 Points)
31 July 2014Earlier position
if co wants to distribute RS 100 as dividend , then co deducts 16.995 as DDT and pays Balance 83.005.
But now from 1.10.2014 (Due to amendment)
Grossing up is applicable . (Institure Journal - Aug 14 :- Total tax rate after applying gross up concept will be 20.47%).
Please solve the above example by applying the concent of gross up.
How to gross up and upon which figure the 20.47 % will be applied.
Thanks in advance.
Akanksha Jain
(Article)
(690 Points)
Replied 31 July 2014
where have you read this?? can you provide me the link?
CA. sanjeet Kumar Ojha
(Chartered Accountant)
(272 Points)
Replied 01 August 2014
| Originally posted by : Akanksha Jain | ||
 |
where have you read this?? can you provide me the link? |  |
https://220.227.161.86/34301cajournal-aug14-8.pdf
See Point No 3
Akanksha Jain
(Article)
(690 Points)
Replied 01 August 2014
Now, after amendment if a company wants to distribute Rs. 100 as dividend it will deduct Rs.16.995 (Rs. 100*16.995%) as tax and distribute Rs. 83.005 as dividend.
So. effective tax rate is 20.474% as Rs. 83.005*20.474% = Rs. 16.995
Therefore increase in tax is 3.479% (20.474 - 16.995)
CAclubindia
