21 September 2010
Transfer to General reserve is regulated by THE COMPANIES (TRANSFER OF PROFITS TO RESERVES) RULES 1975 in India. Pls check this link http://www.mca.gov.in/Ministry/actsbills/rules/CToPtRR1975.pdf
IF DIVIDEND PROPOSED ARE :
- BETWEEN 10 TO 12.5% of the paid up capital - Transfer required is 2.5% of profits after tax - BETWEEN 12.5 TO 15% of the paid up capital - Transfer required is 5% of profits after tax - BETWEEN 15 TO 20% of the paid up capital - Transfer required is 7.5% of profits after tax - OVER 20 % of the paid up capital - Transfer required is 10.00 % of profits after tax
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