05 August 2010
Profit of a private limited company cannot be divided amongst the shareholders without paying Dividend Distribution Tax. If you want to share the profits with the directors deduct TDS under provisions of TDS salary
05 August 2010
In fact the profits of the private limited company are accumulated in P&L A/c head under groupd Reserves and Surplus or are transferred to General/other Reserves under the same group as may be decided by the General Meeting. In case dividend is declared, then the same may be dsitributed from current year's profits or retained surplus of past year's profits after payment of applicable DDT.
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