RAJESH ACCOUNTANT

[rajesh subramanian]

dear sir

We are PVT ltd (100% EOU unit). we have declared dividend for FY 2018-19 on 18 of Jan-19. the dividend amount is 2 cores. the share holders were two Foreigner (German individuals). The dividend is a income for the said foreign share holders. let us know whether we have to deduct tds from the dividend? if yez  what is the % of tds and surcharges, Cess etc

(for your information dividend distribution tax has been paid @ tax 15% surcharge 12% and cess 4% on Dividend )

Please guide us

[DR.MARIAPPAN GOVINDARAJAN]

In my view no TDS is required.

AI Summary

TDS on dividend: no deduction advised where company has declared dividend and paid dividend distribution tax.
Whether TDS is required on dividend declared by a 100% EOU private limited company paid to two foreign individual shareholders; the company declared the dividend and paid Dividend Distribution Tax on the dividend. Advisory conclusion: no TDS is required on the dividend paid to the foreign shareholders.