dividend received from foreign company tax treatment

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Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2011 If a company/individual received dividend from foreign company, Is it liable to pay tax on such income? or Is it exempted?

In the above case if a company is sister concern to foreign company, then what is tax treatment?

Further if a Indian company declares dividend out of dividend received from foreign company Is it taxable?

CA. Anuj Gupta

CA. Anuj Gupta (Expert)
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11 March 2011 The company/individual receiving dividend from foreign company shall be liable to tax in India.

In case the company is a sister concern then in the Budget 2011 there is proposal to tax such dividend @15%.

Yes the Dividend Distribution Tax needs to be paid by indian Company.

Anuj
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