Dividend Distribution Tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 October 2010 I have specifically read that SEZ Developers are exempted from paying Dividend Distribution Tax...what is the law with regard to Units operating in SEZ - are they also exempted from paying DDT.

Pl Clarify..

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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21 October 2010 I think DDT is not exempted, only 10 years tax holiday and income tax holday on business income are the advantages under income tax.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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21 October 2010 As per 115-O(6)
54[(6) Notwithstanding anything contained in this section, no tax on distributed profits shall be chargeable in respect of the total income of an undertaking or enterprise engaged in developing or developing and operating or developing, operating and maintaining a Special Economic Zone for any assessment year on any amount declared, distributed or paid by such Developer or enterprise, by way of dividends (whether interim or otherwise) on or after the 1st day of April, 2005 out of its current income either in the hands of the Developer or enterprise or the person receiving such dividend 55[***]].

So it is exempt.

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