Ravindra (Student) (6 Points)
27 September 2018Dear Members,
In one of our company they are going to declared dividend on forthcoming AGM amount of Rs.25,00,000 for that DDT has to pay, can we show the Dividend & DDT which is relating to F.Y 2017-18 in financials statements, if yes under which head we have to show, if not why? please explain
Best Regards
Ravindra
Ruchika Somani
(Coaching and Practice in Tax Audit Law.)
(4429 Points)
Replied 27 September 2018
If dividend is getting declared before Finalising of Audit report then yes you can show under indirect expense head and less from reserve
KAMAKSHI NATARAJAN
(ARTICLES)
(84 Points)
Replied 27 September 2018
Dividend payable is a current liability and dividend paid/payable should be reduced from retained earnings as part of shareholders equity. DDT shall be reduced from profits before taxes and after reducing income tax. DDT shall be reduced from dividends payable
KAMAKSHI NATARAJAN
(ARTICLES)
(84 Points)
Replied 27 September 2018
Dividends only after declared will be recorded that too when liability is created for the same.
vijay mariyala
(Job)
(126 Points)
Replied 27 September 2018
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