Dividend distribution tax requires domestic companies or principal officers to remit tax on declared dividends with no credit. Clause 109 requires domestic companies to pay dividend distribution tax on any dividend declared, distributed or paid to shareholders at the rate specified in the Second Schedule, allowing reduction only for dividends received from subsidiaries that have already paid tax. The company or the principal officer must remit the tax within fourteen days of declaration, distribution or payment, the tax is final with no deduction or credit allowed, failure to pay results in assessment as an assessee in default and attracts interest for delayed payment. The provision applies even where no income-tax is payable on the company's total income.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Dividend distribution tax requires domestic companies or principal officers to remit tax on declared dividends with no credit.
Clause 109 requires domestic companies to pay dividend distribution tax on any dividend declared, distributed or paid to shareholders at the rate specified in the Second Schedule, allowing reduction only for dividends received from subsidiaries that have already paid tax. The company or the principal officer must remit the tax within fourteen days of declaration, distribution or payment, the tax is final with no deduction or credit allowed, failure to pay results in assessment as an assessee in default and attracts interest for delayed payment. The provision applies even where no income-tax is payable on the company's total income.
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