“dividend distribution tax”
The decision most relied on for dividend distribution tax is Sesa Goa Ltd. v. JCIT (117 Taxmann.com 96), cited in 291 judgments on BharatTax.
Leading authorities on dividend distribution tax
Education cess paid on total income and dividend distribution tax are allowable deductions for income tax purposes.
The provisions of a Double Taxation Avoidance Agreement (DTAA) would prevail over the domestic law rate of Dividend Distribution Tax (DDT) under Section 115-O.
Transactions carried out on the purchase of off-the-shelf software prior to the jurisdictional High Court's decision in CIT v. Samsung Electronics Co. Ltd. (October 15, 2011) are not liable for Tax Deducted at Source (TDS).
A payment of bonus or commission is allowable as a business deduction under Section 36(1)(ii) unless it constitutes a distribution of profits or dividends, thereby distinguishing payments genuinely for services from those merely intended to escape taxation.
Dividend Distribution Tax (DDT) is a tax on the profits of the domestic company, not on the shareholder. The Supreme Court's decision in Tata Tea Co. Ltd. did not address the precise nature of DDT as a tax on the company versus the shareholder.
Excess Dividend Distribution Tax (DDT) paid by a company is refundable to the assessee, even though Section 115-O(4) states DDT is a final payment.
Section 2(22)(e) cannot be applied where the assessee is not a shareholder of the lending company, as its purpose is to prevent tax avoidance by distributing company profits as loans to shareholders.
Dividend Distribution Tax (DDT) under section 115-O is a charge on the company's profits and not on the income in the hands of the shareholder, meaning it does not constitute double taxation and is not subject to Double Taxation Avoidance Agreements (DTAA).
