can you please tell the accounting procedure for interim dividend and corporate dividend tax. Will it be first charged to P&L Account. and at the time of computation of tax can i add back to profit.
12 April 2009
Interim dividend and coporate dividend tax are charged to the profit and loss account below the line (i.e. after PAT)
At the time of computation, we normally start with profit before tax and hence there is no need to add it back. It automatically is not included in the PBT considered by us.
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