Dividend distibution tax

Dear All,

 

An Indian Resident Company wants to pay Dividend to  non resident shareholders sitting in Norway. AS per section 115O DDT is 15% but my question is whether DTAA will be applied in this case?

What will be rate of DDT in this case 15% as per Act or 10% as per DTTA between NOrway & India?

Replies (3)

Hi Vachaspati,

DDT will need to be paid on the dividend ditributed as per 115O at 15%.

DTAA should be applicable for income taxable in the hands of non resident sitting in Norway. In case of dividend from Indian Co, dividend is non taxable in the hands of receipient when DDT has been paid by the company.

Hope this clarifies. Thanks!

HI Rahul,

Thank you for you reply.

If we see DTAA with Norway and the link below DTAA caps 15% 10% what i assume. pls read link i give me your suggestion. 

 

https://articles.economictimes.indiatimes.com/2010-11-13/news/27612590_1_tax-treaties-dividend-distribution-tax-ddt

Okay, so what I feel is we are confusing on 2 things here.

Section 115O applies on the dividend being distributed by an Indian concern. This cannot be avoided.

DTAA will be applicable w.r.t. to Dividend income in the hands of non resident (in Norway). Hence, point 2 and point 4 in Article 10 to the link below will be of relevance:

https://taxbymanish.blogspot.in/2012/06/dtaa-with-norway.H T M L

We can also wait for others to answer this question.

Regards,

Rahul

 

 

 

 

 

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