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Dividend distribution tax & proposed dividend

Others 1979 views 5 replies

Dear Members,

In one of our company they are going to declared dividend on forthcoming AGM amount of Rs.25,00,000 for that DDT has to pay, can we show the Dividend & DDT which is relating to F.Y 2017-18 in financials statements, if yes under which head we have to show, if not why? please explain

Best Regards

Ravindra

 

Replies (5)

If dividend is getting declared before Finalising of Audit report then yes you can show under indirect expense head and less from reserve

Dividend payable is a current liability and dividend paid/payable should be reduced from retained earnings as part of shareholders equity. DDT shall be reduced from profits before taxes and after reducing income tax. DDT shall be reduced from dividends payable

Dividends only after declared will be recorded that too when liability is created for the same.

As per AS 4, it is non adjusting event therefore it prohibits adjustment of dividend in FS and it need to be disclosed in board report only. Dividend and ddt are to be shown FS related to FS 2018-19

Agree with this view


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