Interest on late payment of dividend
This query is : Resolved
24 November 2016
Dear All, I refer Paduka Corp Law book For CA Final (May 2016 edition.) As I was reading Dividend Chapter , I observed that interest on late payment of dividend is 18%, however end the end of the chapter there's a section with title "Companies Act 1956 provisions still relevant". In this section the interest rate is 12%. I wish to know what % will be payable for delay in late payment of dividend for FY 2015-16 and FY 2016-17.
24 November 2016
In simple words both interest rate are for different purpose read below,
The 18% Interest rate is applicable where a dividend has been declared by company but not been paid (Section 127 of companies act, 2013)
The 12% Interest rate is applicable Where the default is made in transferring the unpaid or unclaimed amount of dividend to the unpaid dividend account of company. (Section 205A of companies act, 1956)
Hope your doubt clear.
Thanks.
The 18% Interest rate is applicable where a dividend has been declared by company but not been paid (Section 127 of companies act, 2013)
The 12% Interest rate is applicable Where the default is made in transferring the unpaid or unclaimed amount of dividend to the unpaid dividend account of company. (Section 205A of companies act, 1956)
Hope your doubt clear.
Thanks.
Message likes :
1 times
24 November 2016
@ Sagar Ji
Corresponding section to 205A in 2013 act is 124(3) enforced from 7.9.2016.
Corresponding section to 205A in 2013 act is 124(3) enforced from 7.9.2016.
Message likes :
1 times
24 November 2016
Thanks for replying sir
24 November 2016
Ok, Thanks for updating me
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
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- STCG....................................................
- Sales return eway bill
- TAN for Partnership
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- STCG FOR GOLD ETFs
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- Tax liability on income of freelancer
- GST ON DAMAGED GOODS
- Loan by Partnership Firm
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
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
