tds on dividend

TDS 2706 views 3 replies

is tds deductible on dividend remitted to a foreign entity

Replies (3)

Dividend paid to foreign entity will attract 'Dividend Distribution Tax' under Section 115 - O @ 15% plus 3% surcharge to be paid by Company. Once this Tax has been paid, no TDS need to be deducted from Dividend remittance / payment to Foreign entity.

Yogesh Shah,

 

Is it 15% plus 3% surcharge

 

or

 

15% plus 10% surcharge + 3% edu. cess?

 

And how about surcharge if the company paying dividend has an income below Rs. 1 crore?

Rate of Dividend Distribution Tax --

 

If Income of Company is exceeding 1 crore :

Basic Rate 15% + 10% Surcharge + 3% Education Cess

 

If Income of Company is or less than 1crore :

Basic Rate 15% + 3% Education Cess


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