Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get 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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: articles on VAT and GST in India :: TDS :: VAT Audit :: empanelment :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
News Headlines »
 Govt to simplify income tax laws, sets up task force under taxman Arbind Modi to study overhaul
 Infosys to configure GST network for filing returns
 Save income tax through mutual fund investment. All you need to know
 Income tax returns (ITR): On sale of property, here is what you should know
 Section 35 of the Income-tax Act?
 Notification regarding extension of last date w.r.t submission of closing stock by dealer.
 Integrated Goods and Services Tax (IGST) Rules, 2017 (As on 15.11.2017)
 Central Goods and Services Tax (CGST) Rules,2017 (As on 15.11.2017)
  101st Constitution Amendment Act, 2016
 Pr. Commissioner Of Income Tax-6 Vs. Mccain Foods India Pvt. Ltd.
 Section 10 of the Income-tax Act, 1961

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 2017 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