Sec 205A of Companies Act

Others 1043 views 5 replies

gokul

Accountant

126 Points Joined October 2008

Applicability of Sec 205A of Companies Act

Vide Notification GSR 580(E), provision of Sec 205A has been exempted to a Government Company whose entire paid up share capital is held by Central Government or State Government.....

Company A (Government Holding - 95%)

Company B (Wholly owned subsidiary of Company A)

Company A cannot avail the benefit of the above notification since the entire paid up share capital is not held by Government

Whether Company B is eligible for exemption ?

Thanks

Replies (5)

Ajay Mishra

Company Secretary

74352 Points Joined March 2009

Dear Mr. Gokul

If the Company A is not availing the benifite of Notification, company B will also not avail such benifite, because in downstreem company B holding of Central or State will be taken up to 95%.

Others views are also solicited.

Regards

CS Ajay Mishra

Mansi

Article

61 Points Joined June 2010

May be, if we assume that Govt holds shares in subsidiary of A that is B which is 100% i.e full share capital then in that case B can also be exempted from Sec 205 A

Pradeep Baid

Account Officer

24 Points Joined September 2010

Dear Sir,

In how many days should company pay the dividend to the share holders from the date of AGM

Pradeep Baid

Account Officer

24 Points Joined September 2010

What is the dividend distribution tax for the financial year 31.03.2010 declared on 25.09.2010

Ajay Mishra

Company Secretary

74352 Points Joined March 2009

Dear Pradeep

Every domestic company is liable to pay a Dividend Distribution Tax @ 15% on the amount declared, distributed or paid by such company by way of dividends. The effective rate of tax works out to16.995%. The proposed Direct-tax Code also contains similar provision.

Pursuant to section 207, where a dividend has been declared by a company, it has to be paid or the warrants in respect thereof has to be sent/posted within 30 days from the date of declaration to the shareholders entitled to the same.

Regards