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: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: VAT Audit :: empanelment :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: due date for vat payment :: VAT RATES :: cpt :: form 3cd :: list of goods taxed at 4% :: ACCOUNTING STANDARDS
 
 
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

DDT: Whither the level-playing field?
March, 08th 2007

The Dividend Distribution Tax (DDT) is proposed to be increased to 15 per cent by the Finance Bill, 2007 with effect from April 1. Before this proposed amendment, companies were liable to pay DDT at 12.5 per cent plus surcharge and education cess resulting in an effective rate of 14.025 per cent. Pursuant to the proposed amendment, the effective rate would rise to 16.995 per cent.

With the increase effective April 1, all dividends declared, distributed or paid after that date will suffer the higher rate of tax.

Let us analyse the financial impact of the proposed change in rate with the help of the accompanying tables: As is evident from the tabular analysis, hitherto there was no difference in the effective tax rate in the case of an Indian and a foreign company. However, with the proposed amendment, the effective tax rate in the case of an Indian company will be higher compared to a foreign outfit. This highlights the fact that foreign companies will, in fact, pay less tax and hence will bear a lower burden than their domestic counterparts.

Anil Talreja
(The author is Senior Manager, Deloitte Haskins & Sells, Mumbai.)

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

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