As we know, the Dividend declared for FY 2012-13, gets paid in Fy 2013-14, after the AGM's approval.
So, while making Provision for Dividend Distribution Tax for the Dividend declared for FY 2012-13, the rate to calculate Tax should be the rate relevant to FY 2012-13, or new rate for FY 2013-14.(Increased rate due to Increase in Surcharge)?
Please Ans.
it shud be for F.Y. 2012-13, because the dividend is relating to that F.Y. even though the pymt is deferred in next F.Y.
But can we say that the Actual Liability arises when the AGM approves it, so the tax rate at the time of AGM's approval(i.e. of FY 2013-14) should be taken?
CAclubindia
