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It is difficult to classify it because some times it is direct tax while on other times it becomes indirect tax.
If dividend tax is imposed on company itself then it is an example of indirect tax because the company can shift it towards market/ consumers by increasing the prices.
Mostly dividend is paid to share holders. If dividend is distributed among share holders then definitely it increases their income, they will have to pay income tax i.e. it is direct tax.
Now a days dividends are exempted from tax in order to motivate the companies to increase their production, income
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List of direct and indirect taxes?
In India... the list of direct and indirect taxes.. is as following.. Direct Tax: Income tax corporation tax property tax inheritence (estate) tax & gift tax Indirect tax: customs duty, central excise duty, service tax, sales tax, value added tax (VAT), securities transaction tax
What is the tax treatment of a dividend to the company?
dividend paid by the company is exempt from tax u/s 115O, but dividend distribution tax should be paid by the company as per Income tax Act before dividend.According to the union budget 2007, the rate is 15%. Equity mutual funds (with more than 65% of assets invested in equities) do not pay a dividend distribution tax, though other funds do. Liquid and Money Market funds pay 25% dividend distribution tax.
What is the accounting double entry when a company declare or pay dividend to its holding overseas company with 10 percent local withholding tax rate?
Let's say the dividend payable is $110. When the dividend is declared (eg the decision is made to pay a dividend but the dividend and tax won't be paid until, say, the first day of next month) then the entry is: Debit "Dividends Expense" (Expense Account) $110 Credit "Dividend Payable Parent Company" (Liability Account) $100 Credit "Dividend Tax Withheld" (Liability Account) $ 10 When the dividend and Tax is actually paid (eg it is now the first day of next month) the entry is: Debit "Dividend Payable Parent Company" (Liability Account) $100 Debit "Dividend Tax Withheld" (Liability Account) $ 10 Credit "Bank Account" (Asset Account) $110
How do you report tax evasion in india?
In order to report tax evasion in India, you must contact the Central Board of Direct Taxes (CBDT) . Their phone number is +91-22-2687 4800.
Is wealth tax a direct tax or indirect tax?
direct tax
Current corporate dividend tax rate in India?
At per the text book its 13.2345%
Is death duty a direct tax in India?
Yes
Who is the chairman of direct tax India?
Shri S.S.N.MOORTHY
Corporate Dividend Practices in India?
corparate dividend pratices in india
What is a dividend of 164?
Dividend of 164 is the maximum tax on the dividend income that will be effected on 31st December.
List of direct and indirect taxes?
In India... the list of direct and indirect taxes.. is as following.. Direct Tax: Income tax corporation tax property tax inheritence (estate) tax & gift tax Indirect tax: customs duty, central excise duty, service tax, sales tax, value added tax (VAT), securities transaction tax
Is dividend pay on net profit or profit after tax?
Tax is the first priority of payment that's why dividend is paid on income after tax basis which is dividable to shareholders.
What is the tax treatment of a dividend to the company?
dividend paid by the company is exempt from tax u/s 115O, but dividend distribution tax should be paid by the company as per Income tax Act before dividend.According to the union budget 2007, the rate is 15%. Equity mutual funds (with more than 65% of assets invested in equities) do not pay a dividend distribution tax, though other funds do. Liquid and Money Market funds pay 25% dividend distribution tax.
What is sales proceed in shares and dividend?
Sales proceeds of shares is about CD 40000 and dividend of last 2 years is about CD 4000. Long term capital gains and dividends on shares carry zero percent tax in India
What is the symbol for Nuveen Tax-Advantaged Dividend Growth Fund in the NYSE?
The symbol for Nuveen Tax-Advantaged Dividend Growth Fund in the NYSE is: JTD.
Chairman central board of direct tax new delhi address?
Address of Director for Central Board of Direct TAXES INDIA
What is dividend distribution tax?
Dividend distribution tax is the tax levied by the Indian Government on companies according to the dividend paid to a company's investors. As per existing tax provisions, income from dividends is tax free in the hands of the investor. There is a levy of 15% of the dividend declared as distribution tax. This tax is paid out of the profits/reserves of the company declaring the dividend.  The provisions of this Section applies to a domestic company for any assessment year, on an amount declared, distributed or paid by such company by way of dividends (whether interim or otherwise)  The Company is required to pay the Dividend Distribution Tax within 14 days from the date of declaration or distribution or payment of any dividend whichever is earlier.  The said dividend distribution tax is in addition to the income tax chargeable on the total income of the Company and the same shall be payable @15% and the same shall be increased by Surcharge @10%, and such aggregate of tax and surcharge shall be further increased by an Education cess @2% and higher education cess 1% .  The Section applies to dividend payments made either out of current or accumulated profits.  The dividend so paid will be eligible for exemption for the shareholders under Section 10(34).  The Dividend Distribution Tax is payable by a Domestic Company even if no income-tax is payable on its total income.
