Ddt on preference shares-s 115 o

CDT is paid with 14days from 

A) Declaration of Dividend

B) Distribution of dividend

C) Payment of any dividend 

You will agree that in your case dividend is not paid and nor distributed 

Now abt declaration :- when company declare a date on which dividend will be paid to shareholder   ,ie, Record date ,  According to such declaration share prices goes up and down

declaration/payment/distribution none attract in your case

Creating Provision for dividend for  cumulative preference share not attract any CDT. 

Hi Sourav,

Thanks for your reply..

My question is if they have not declared dividend, then why should provision be made in books every year for the amount of dividend and  DDT?

Dividend on cumulative preference share are the actual liabilty for the concern financial year and there is no wrong done if provision is being created

these are the lines from guidance note on CDT

"According to generally accepted accounting principles, the provision

for dividend is recognised in the financial statements of the year to which the

dividend relates. In view of this, CDT on dividend, being directly linked to the

amount of the dividend concerned, should also be reflected in the accounts

of the same financial year even though the actual tax liability in respect

thereof may arise in a different year."

Sir,

Is Reverse Charge is applicable when service provider is Body corporate.