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 :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: ACCOUNTING STANDARDS :: due date for vat payment :: list of goods taxed at 4% :: cpt :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: empanelment :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD
« News Headlines »
 India is moving towards a flawed GST
 ICAI to organise two-day international conference in Hyderabad
 Here's how to calculate tax payable on your capital gains
 Income Tax calculations for the financial year 2016-17
 CPE Events 17 October - 22 October 2016
 High Court raps I-T Department for wrong tax demand
  CBDT signs 5 advance pricing pacts with Indian taxpayers
 Finance ministry warns tax officials of action against GST protest
 Big changes for small units under GST
 Parliament’s winter session to begin on November 16 to expedite GST rollout
 Income-tax (27th Amendment) Rules, 2016 - 92/2016

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