Hello Sir,
I Just need clarification on certain points-
1. An Indian Company is going to receive dividend from its Wholly owned subsidiary (registered in US) after deducting with holding tax @ 15 % as per India US treaty? Can Indian company take credit of such 15% while paying taxes U/s 115BBD @ 16.22%? If yes, credit is available for full 15%% or and average rate of tax is available for credit?
2. Secondly, the Indian Company (A private limited company) wants to distribute all the amt. of dividend received to its shareholders in the same year. Is the company require to pay any CDT since the company is already paying taxes U/s 115 BBD while receiving the dividend? Is there any limit on the amount of the dividend declared/distributed in a particular year (The paid share capital is Just Rs. 1 lac)?
Please guide to meet all the compliances.
CAclubindia
