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Sec 115-0

Tax queries 757 views 1 replies

The company is liable to pay dividend on Cumulative Pref shares however the company is suffering loss and providing dividend by way of accumulating same in the notes to accounts means not deductiing after Net profit before tax. Is it right ? In this case, It is liable for dividend distribution tax ? 

Replies (1)

I think what u mean to say is that u are showing the dividend not paid as contingent liability in notes to accounts. If this is the case then no need to provide for DDT.

 

Also 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

          (c)  payment of any dividend,

whichever is earliest.

In your case nothing is being done neither declaration nor distribution nor payment so not liable for DDT.


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