Interim dividend
Parvez Vasaya (Business) (80 Points)
17 March 2016Parvez Vasaya (Business) (80 Points)
17 March 2016
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17858 Points)
Replied 17 March 2016
The answers of all your questions are YES and you need to pay dividend distribution tax on distributed profits.
Parvez Vasaya
(Business)
(80 Points)
Replied 17 March 2016
Sir we are small company do we still need to transfer dividend in seperate bank account?
CS Ankur Srivastava
(Company Secretary & Compliance Officer)
(17858 Points)
Replied 17 March 2016
Yes. You may have a single separate dividend account and transfer dividend amount to that account every time dividend is declared and distribute the entire dividend amount from such account.
if any amount remained unclaimed and unpaid then such amount need to be transferred to separate Unpaid Dividend Account for that year for 7 years.
Parvez Vasaya
(Business)
(80 Points)
Replied 17 March 2016
Thank yu sir for yur kind reply. God bless yu
Parvez Vasaya
(Business)
(80 Points)
Replied 17 March 2016
Sir can yu also pls clear Point no 2 regarding Dividend distribution tax. How much and when to pay?
We are declaring dividend for September and its march now so how can we comply the same as tax has to be deposited within 14 days i guess?
CS Arjun Rajagopal
(B.com, ACS)
(1056 Points)
Replied 17 March 2016
Since you are planning to declare interim dividend only. Kindly note the following compliances
1. As per Sec 123(4) of the Companies Act, 2013 the amount of dividend, including interim dividend shall be deposited in a scheduled bank in a separate account within 5 days from the date of declaration of such dividend.
2. Time limit for payment of dividend distribution tax (DDT):-
The amount of dividend tax shall be deposited within 14 days from the earliest of the following dates:
a) declaration of dividend., or
b) distribution of dividend., or
c) payment of dividend
Rate of Dividend Distribution Tax
As per the amendment made by Finance Act, 2015 DDT is to be paid at the rate of 20.358% (ie 17.647% basic rate +12% surcharge+3%Cess)
Suppose you have declared a dividend total amount of 10,00,000
DDT is 10,00,000*20.358% - Rs. 2,03,580/-
Regards,
Arjun Rajagopal