Dear Friends
Dividend declared by dometic company Rs. 100
Calculation of DDT as follows:
Net Dividend Rs. 100
Gross Up (100*0.15)/(1-0.15) = 17.65
Gross Dividend Rs. 117.65
DDT 15% x 117.65 = 17.65
Now my question is that while grossing up I have taken DDT rate of 15% but havent taken surcharge and cesses into account.
Are surcharge and cesses also needs to be considered while grossing up?
regards
shivani
You may add SC and EC after computing DDT as above.
Another simple method is:
15/85 x 100 = 17.65% + SC + EC
Dear Poornima
So DDT shall be
DDT 17.65
Add: Surcharge 10% 1.76
Add: Cesses 3% 0.58
Total 19.99
So it means we shouldnt consider surcharge and cesses while grossing up but should add them later after calculating DDT?
Am i understanding correct?
Regards
Yeah right. 17.65% is DDT before SC and EC.
CAclubindia
