Shivani (Learner) (1881 Points)
19 October 2016Dear 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
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 19 October 2016
You may add SC and EC after computing DDT as above.
Another simple method is:
15/85 x 100 = 17.65% + SC + EC
Shivani
(Learner)
(1881 Points)
Replied 19 October 2016
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
CMA Poornima Madhava
(CMA)
(13112 Points)
Replied 19 October 2016
Yeah right. 17.65% is DDT before SC and EC.
MAYUR BIYANI
(Assistant Manager-Taxation & Accounts)
(142 Points)
Replied 08 November 2016
CAclubindia
