Dividend tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 June 2010 please inform me if a company made profit for the 2010 Rs.48000/-and wish to pay dividend 15000/- to its shareholder(total 15000 eq. share @ Rs.1/-each) then what will be the dividend tax for the year, and what will bethe entry ,please solve my problem

Rasesh

Rasesh (Expert)
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04 June 2010 The dividend distribution tax will be 15% + 10% surchage + 2+1% cess.

Provision for dividend and provision for DDT will be credited and an equal amount will be debited from the P & L Appropriation account.

At the time of payment of dividend and the tax, the provisions will be reversed by the actual payments.