Dividend

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 January 2012 hi sir/madam,

please advice me on whether dividend paid by an indian company to non-resident (foreign) share holder is subject to tax in india.
please.....

CA Salman Mansoori

CA Salman Mansoori (Expert)
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24 January 2012 YES IT WOULD BE LIABLE TO DDT AS THE FOREIGN RESIDENT IS HAVING THE INCOME FROM INDAIN COMPANY. SINCE THE SAID DIV IS A RESULT OF INCOME ACCRUED IN INDIA HENCE IT COMES UNDER THE AMBIT OF TAXATION IN INDIA. IRRESPECTIVE OF THE RESIDENTIAL STATUS OF THE RECEIPENT.. REFER SEC 9 OF HE INCOME TAX ACT

CA Salman Mansoori

CA Salman Mansoori (Expert)
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24 January 2012 YES IT WOULD BE LIABLE TO DDT SINCE THE SAID INCOME HAS A SOURCE FROM INDIA IRRESPECTIVE OF THE RESIDENTIAL STATUS OF THE RECEIPENT. REFER SEC 9 OF THE INCOME TAX ACT 1961

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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24 January 2012 Dividend paid by an Indian Company is a Dividend as referred to in Section 115-O , is exempt from tax vide Section 10(34) for all the assessees.
.

Vide sub-section Section 115C(c) , it is not treated as Investment Income even though it may be arising due to investment made in foreign exchange.

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2012 thanks sir