Ameet (L) (1678 Points)
04 August 2010
The company is liable to pay dividend on Cumulative Pref shares however the company is suffering loss and providing dividend by way of accumulating same in the notes to accounts means not deductiing after Net profit before tax. Is it right ? In this case, It is liable for dividend distribution tax ?
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 04 August 2010
I think what u mean to say is that u are showing the dividend not paid as contingent liability in notes to accounts. If this is the case then no need to provide for DDT.
Also the principal officer of the domestic company and the company shall be liable to pay the tax on distributed profits to the credit of the Central Government within fourteen days from the date of—
(a) declaration of any dividend; or
(b) distribution of any dividend; or
(c) payment of any dividend,
whichever is earliest.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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