Whether dividend is liable to st?

payment of dividend is not any service, it is mere return on investment

it will be liable for cdt or taxable in ios

Dear Sir,

Service tax is not Applicable on Dividend Income as far i know...

Regards,

Pinky Agarwal.

If you go through the definition of 'Service', the pre-requisites to term anything as service is as follows -

1. There should be a service provider

2. There should be a service receiver

3. There should be something which can be treated as service

4. There should be a consideration for such service.

Shareholders are the owners of the company and the contributories to the memorandum of the company. Distribution of profits to shareholders cannot be a service as there is no service provider or service receiver.

Hence, dividend is liable to service tax.