Dividend distribution tax

Tax queries 627 views 3 replies

Sriram

CMA Final

178 Points Posted on 08 June 2015

Dear Experts,

Dividend Distribution tax - Sec.115--O

The principal officer of the domestic company and the company shall be liable to pay the tax on distributed profits to the credit of the Central Government within fourteen days from the date of—

(a) declaration of any dividend; or

(b) distribution of any dividend; or

whichever is earliest.

Now my Query is:

What is the difference between (b) Distribution of any Dividend and (c) Payment of any dividend

Kindly revert

Thanks in advance

Replies (3)

CA Salman Ansari

Salman Ansari & Assoc.

247 Points Posted on 08 June 2015

Hello Sriram,

I looked into this and there seems to be no apparent difference between the two, except the term 'payment' is more conclusive compared to 'distribution'. Still, they are used interchangeably quite often.

So I guess I don't have the answer. :(

srinivasa.B

CA final Bcom

70 Points Posted on 08 June 2015

Hi Sri ram,

Normally Dividend declared in Anual General Meeting, and some companies may distribute interim dividend in kind or paid in way bank cheque (cash) and paid in the during the period of FY.

( as per companies act dividend can be declared in AGM)

SATNAM SIDHU

CA Final STUDENT

35 Points Posted on 08 June 2015

It may be possible word distribution to be used for sec 2(22)a to d boz in these section dividend is not declared it is deemed dividend .in these cases mostly payment in some other form than cash so word payment is not appropriate for those cases