Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: VAT RATES :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: empanelment :: VAT Audit :: due date for vat payment :: form 3cd :: articles on VAT and GST in India :: TDS
 
 
News Headlines »
 Filing tax returns? Here are seven things to remember
 Clarifications on computation of book profit for the purposes of levy of Minimum Alternate Tax (MAT) under section 115JB of the Income-tax Act, 1961 for Indian Accounting Standards (Ind AS) compliant companies.
 Mistakes in filing income tax returns that may get you a tax notice
 Know how you can claim return of income in Form 26 AS case
 What you must know for tax filing this year
 How to file tax return if you have two Form 16s
 10 things you should know about Form 26 AS
 How to file income tax return without Form 16
 How to rectify income tax returns
 Income-tax (21st Amendment) Rules, 2017
 Deadline for filing income tax return nears; here are 10 common mistakes that you must avoid

Cash flow planning in the new dividend tax regime
March, 07th 2007

Companies have gone into overdrive mode to line up resources for interim dividend after the Budget 2007 proposed an increase in the rate of DDT (dividend distribution tax) from the existing rate of 12.5 per cent to 15 per cent. "This is a reflex action," says Mr Anil Talreja, Senior Manager, Deloitte Haskins & Sells, Mumbai. Considering that the effective rate of DDT would be close to 17 per cent, after considering surcharge and education cess, there is certainly going to be a shower of dividends being distributed by Indian companies before April 1, 2007, he foresees.

"The proposed increase has been made effective April 1. Thus, all dividends declared, distributed or paid after April 1, 2007 will suffer the higher rate of tax. This will certainly result in an increase in the dividends being paid by the companies till March 31, 2007 i.e. prior to the date when the law is proposed to be amended," says Mr Talreja, in an interaction with Business Line.

"Companies need to ensure compliance with the requirements under the SEBI regulations including those in the listing agreement, which pertain to the minimum timeframe required to be adhered by companies for declaration, distribution and payment of the di vidends," he adds.

Tax on distributed income in respect of money market mutual fund and liquid fund is proposed to be increased to 25 per cent (plus surcharge and cess as applicable).

Is there anything to be read between the lines? "Yes," says Mr Talreja. "With the proposed amendment, Indian companies and specified funds will endeavour to ensure that dividends are not only declared but also paid before this date (April 1, 2007) to avo id any litigation with the tax authorities."

And here is something interesting that Mr Talreja draws attention to: "Considering the fact that the above proposed amendment is effective April 1, 2007, companies declaring and paying dividends after April 1, 2007 but before the date of passing of the F inance Bill, 2007 would be required to pay DDT at 12.5 per cent (plus surcharge and education cess as applicable). Thereafter, the differential tax would be payable once the Finance Bill, 2007 is enacted." A point with cash-flow implications, that is.

D. Murali

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions