Rahul (Chartered Accountnat CS) (1580 Points)
30 December 2013Y ltd in which 80% shares are held by G ltd. Y ltd declared a dividend amounting to rs 30 lacs to the shareholders for the financial year 2011-12 in its annual general meeting held on 18th may 2012. Dividend distribuion tax was paid by Y LTD on 20th May 2012. G ltd declared an interim dividend amounting to Rs 40 lacs on 1st december 2012 for the year ended 31st march 2013
Compute the amount of tax on dividend payble by G ltd.
What if 52% shares of Gltd are held by S ltd, an Indian company???
Shivashish
(Chartered Accountant)
(2796 Points)
Replied 31 December 2013
DDT will be for (40lacs-24lacs)*DDT rate..
24lacs is arrived by dividend amount i.e. Rs.30 lacs* shareholding % i.e. 80%
If S ltd holds holds 52% in Gltd... then 52% of dividend declared by G ltd. will be allowed to be reduced from dividend payment by S ltd.
CA RAM AWASTHI
(Industrial Trainee)
(61 Points)
Replied 02 January 2014
CAclubindia
