Corporate dividend tax u.s.115o

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Prabhakar (Querist)
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14 October 2014 One of my company has paid Interim Dividend during the year at the rate of 5%. Kindly advise me how to calculate the Corporate Dividend Tax.please give me the formula for calculating the CDT

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 October 2014 where the amount of dividend paid or distributed by a company is Rs. 85, then DDT under the amended provision would be calculated as follows:

Dividend amount distributed = Rs. 85

Increase by Rs. 15 [i.e. (85*0.15)/(1-0.15)]

Increased amount = Rs. 100

DDT @ 15% of Rs. 100 = Rs. 15

Tax payable u/s 115-O is Rs. 15

Dividend distributed to shareholders = Rs. 85