Please tell me what is the time limit for transferring dividend in the divided a/c after declaring it in the AGM? Also tell me what is the consequences of non compliance of above provision? Please answer the above query with the relevant section and any case law if any.
05 October 2013
The dividend amount shall be deposited in a separate account within 5 days from the date of declaration of dividend(Sec 205 (1A). Sec 205 has not mentioned any penalty regarding this. How ever the date of dividend account opened has to be mentioned in the Annual Report.
07 October 2013
Thanks Veeraraghava narasimhan ji, but is there any provision of interest on late deposit in dividend a/c? what is the consequences if we opened a dividend a/c and not deposit amount in to it with in 5 day.?? Please reply the same, urgently?? Thanks in advance
CAclubindia
