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: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: TDS :: form 3cd :: empanelment :: cpt :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: VAT Audit :: due date for vat payment
 
 
News Headlines »
 Seven things you must do before 31st March
 Income Tax saving investments: Top 5 options available for high-income individuals
 How to use zero tax rule on long term capital gains on stocks
 GST Returns - Furnishing details of inward supplies
 5 ways to maximise you income tax return
 Income-tax (2nd Amendment) Rules, 2017
 Soon, Faster PAN, An App For Filing Tax Returns
 Changes in income tax return filing process
 New Income Tax Rates And Deductions Applicable From April 1, 2017
 Tax and transparencya
 No decision yet on imposing tax on cash transactions

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 2017 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