DECLARATION OF DIVIDEND/INTERIM DIVIDEND
This query is : Resolved
16 July 2008
DEAR FRIENDS,
DURING AUDIT OF BOOKS OF ACCOUNT OF A PVT LTD I NOTICED THAT,THE COMPANY HAS DECLARED INTERIM DIVIDEND OUT OF ITS RESERVE WHILE HAS ENOUGH CREDIT BALANCE IN PROFIT AND LOSS ACCOUNT.CAN A COMPANY DO SO.IF YES, WHAT IS THE CONDITION RELATED THERETO.
DURING AUDIT OF BOOKS OF ACCOUNT OF A PVT LTD I NOTICED THAT,THE COMPANY HAS DECLARED INTERIM DIVIDEND OUT OF ITS RESERVE WHILE HAS ENOUGH CREDIT BALANCE IN PROFIT AND LOSS ACCOUNT.CAN A COMPANY DO SO.IF YES, WHAT IS THE CONDITION RELATED THERETO.
17 July 2008
"Declaration of Dividend out of reserves Rules 1975" allow a company to declare dividend out of reserve if there no profits.
it means, first a company shud exhaust its profits (current and accumulated), then move to reserves.
in ur case, the company shud not declare dividend out of reserve bcoz it have suffcient profits.
it means, first a company shud exhaust its profits (current and accumulated), then move to reserves.
in ur case, the company shud not declare dividend out of reserve bcoz it have suffcient profits.
17 July 2008
DEAR MR TYAGI,
THANKS FOR YOUR REPLY.
THANKS FOR YOUR REPLY.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- Inventory of finished goods
- Applicable TDS rate for sale of property in Nov 2024
- Can we claim ITC of Feb-2024 in the month of November-2024 which was not claimed by oversight
- GST ON EXPORT COMMISSION
- RCM INVOICING FROM NOV-2024
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- Regarding Waiver of Interest levied u/s 50 of PGST/CGST Act
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding einvoice taken on nil rated sales
Trending Online Classes
CAclubindia
