Can i give GST refund as dividend to shareholder ? GST refund will be received in next FY for the OPC. i understand DDT has to be paid by company, and 10 percent dividend tax by shareholder.
Thanks :)
Christine Diaz (132 Points)
12 May 2021Can i give GST refund as dividend to shareholder ? GST refund will be received in next FY for the OPC. i understand DDT has to be paid by company, and 10 percent dividend tax by shareholder.
Thanks :)
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 12 May 2021
Christine Diaz
(132 Points)
Replied 13 May 2021
| Originally posted by : Sourav | ||
 |
No you cannot pay GST Refund as dividend to shareholders. |  |
So, how can i transfer the GST refund to the shareholder of OPC ? Thanks :)
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 13 May 2021
1) DDT has been abolished vide Finance Act 2020 and now shareholders are required to pay tax on dividends.
2) GST refund of OPC is part of the company. Refund will be given in case of excess payment of tax and that excess payment would have been made by OPC.
Christine Diaz
(132 Points)
Replied 14 May 2021
So, how can i transfer the GST refund to the shareholder of OPC ? Thanks :) Read more at: https://www.caclubindia.com/forum/can-i-give-gst-refund-as-dividend-to-shareholder--574788.asp#reply
Christine Diaz
(132 Points)
Replied 14 May 2021
| Originally posted by : CMA Poornima Madhava | ||
|
Simple. you cannot | |
So it becomes part of next FY opc income? I could give that as director salary? Thanks madam :)
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 14 May 2021
GST refund as such is not an income but interest received on GST refund is an income for the OPC.
Christine Diaz
(132 Points)
Replied 14 May 2021
| Originally posted by : CMA Poornima Madhava | ||
|
GST refund as such is not an income but interest received on GST refund is an income for the OPC. | |
So should the GST refund never be taken out of company account ? It should just lie there till closure of company? Thanks madam :)
Navin Agarwal
(354 Points)
Replied 15 May 2021
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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