Dividend
This query is : Resolved
14 June 2013
When CLB permission is required for payment of dividend? What is the procedure for paying dividend out side India (all the shares)? Please help on this
14 June 2013
Hi
The Reserve Bank of India (RBI) had vide its Circular AD (M.A. Series) No. 9, dated 10-4-1993 simplified the procedure for the payment of dividend to foreign shareholders. The power has been delegated to the authorised dealer (AD) concerned. The company is required to approach its authorised dealer with the following documents duly completed:—
(i) Form A2 in duplicate duly filled up and signed by the applicant.
(ii) Certified copy of the company's audited balance sheet and profit and loss account statement for the year/period to which the dividend relates.
(iii) Certified copy of the resolution passed at the annual general meeting of the company declaring the dividend.
(iv) Certified copies of Reserve Bank's approvals obtained for issue/purchase/holding of the shares on which dividend is to be remitted abroad.
On receipt of the abovesaid documents, the authorised dealer should confirm on Form A2 that they have verified the Reserve Bank's approval for purchase/holding/issue of the shares held by the non-resident beneficiary and it does not prohibit the remittance of dividend. Authorised dealer should also separately intimate the office of Reserve Bank within whose jurisdiction the Registered Office of the company is situated.
Dividend paid to NRIs/OCBs may be either repatriable outside India or may be kept in India in NRI rupee accounts. In the first case the company shall apply to an AD for remitting the dividend overseas or crediting the same to the NRI account with a bank in India. In the latter case the dividend may be paid to the bank in India for credit in the NRI rupee account.
The Reserve Bank of India (RBI) had vide its Circular AD (M.A. Series) No. 9, dated 10-4-1993 simplified the procedure for the payment of dividend to foreign shareholders. The power has been delegated to the authorised dealer (AD) concerned. The company is required to approach its authorised dealer with the following documents duly completed:—
(i) Form A2 in duplicate duly filled up and signed by the applicant.
(ii) Certified copy of the company's audited balance sheet and profit and loss account statement for the year/period to which the dividend relates.
(iii) Certified copy of the resolution passed at the annual general meeting of the company declaring the dividend.
(iv) Certified copies of Reserve Bank's approvals obtained for issue/purchase/holding of the shares on which dividend is to be remitted abroad.
On receipt of the abovesaid documents, the authorised dealer should confirm on Form A2 that they have verified the Reserve Bank's approval for purchase/holding/issue of the shares held by the non-resident beneficiary and it does not prohibit the remittance of dividend. Authorised dealer should also separately intimate the office of Reserve Bank within whose jurisdiction the Registered Office of the company is situated.
Dividend paid to NRIs/OCBs may be either repatriable outside India or may be kept in India in NRI rupee accounts. In the first case the company shall apply to an AD for remitting the dividend overseas or crediting the same to the NRI account with a bank in India. In the latter case the dividend may be paid to the bank in India for credit in the NRI rupee account.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- RELATED TO TRIBUNAL APPEAL
- HOUSING LOAN ISSUE
- TDS AND ITR ISSUE
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- ITR 4 and Bank transactions
- RATE AND HSN CODE
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
