Latest Expert Exchange Queries
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: VAT Audit :: ACCOUNTING STANDARD :: VAT RATES :: form 3cd :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: TDS :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: cpt :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
News Headlines »
 Directions under section 119 of the Income-tax Act, 1961
 Securities excluded from GST ambit in revised Bill
 GST dilemma: Hope fades for new tax regime
 5nance.com launches tax investment platform
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful

Corporates making haste on interim dividend to beat tax hike
March, 03rd 2007
To avoid attracting additional tax burden


Dividend issue
Last time such a scramble had taken place was in 2002-03
A similar development is seen on the ESOPs front

In order to avoid the higher dividend distribution tax announced in the Budget, companies are planning to go in for an interim dividend.

More than a dozen companies including Reliance Industries, IPCL, Nalco, Wockhardt and Sun Pharma, have called for board meetings to decide on issuing an interim dividend.

The Budget had increased the dividend distribution tax (DDT) from 12.5 to 15 per cent and analysts had expected India Inc to scurry and announce interim dividends by April 1, when the proposal would come into effect. By announcing a dividend during the current financial year, companies would not attract the additional tax burden.

A similar development was seen on the ESOPs (Employees Stock Option) front as well, with a clutch of companies, including ICICI Bank, Patni, NIIT and Kotak Mahindra, going in for ESOPs. The Union Finance Minister, Mr P. Chidambaram, had announced that ESOPs would be brought under the purview of fringe benefit tax.

Boards of three Reliance group companies RIL, IPCL and Reliance Infrastructure would meet on March 10, to consider an interim dividend, the company told the Bombay Stock Exchange. Nalco's board will be meeting on March 9.

An analyst points out that the last time such a scramble took place was when DDT was introduced in 2002-03. More than 200 companies had rushed in to announce interim dividends, as the proposal was to come into effect in June. Eventually, the Ministry of Finance stepped in to stem the scramble, he recounts.

But this time around, the Finance Ministry has not given companies the liberty of time, as the proposal comes into effect from April 1. As a result, some market watchers said that companies might find it difficult to meet the deadline as they needed to inform to the bourses.

Some of the other companies that have called for board meetings to discuss the interim dividend issue include Nirma, Zandu Pharmaceuticals, FDC, Patel Engineering and Godawari Power.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Internet Marketing Website Marketing Internet Promotion Internet Marketing India Website Marketing India Internet Promotion India Internet Marketing Consultancy Website Marketing Consulta

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