Accounting of Interim dividend and dividend tax

This query is : Resolved

gopi (Querist)
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11 April 2009
Dear Sir/Madam

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.

Regarding it i have been in confusion

pls clarify it...

Thanks in advance.

Hiral Raja

Hiral Raja (Expert)
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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.