The ITAT held that where a domestic company declares, ...

ITAT: Domestic firms must pay dividend tax u/s 115-O, not DTAA rates, for non-resident shareholders.

January 9, 2025

Case Laws Income Tax AT

The ITAT held that where a domestic company declares, distributes, or pays dividends to non-resident shareholders, attracting Additional Income-tax (Tax on Distributed Profits) u/s 115-O of the Act, such additional income tax payable by the domestic company shall be at the rate mentioned in Section 115-O and not at the rate applicable to the non-resident shareholders as per the relevant DTAA. The ITAT was conscious of the sovereign's prerogative to extend treaty protection to domestic companies paying dividend distribution tax through DTAAs. However, the domestic company can claim the benefit of the DTAA only if the Contracting States intend to extend such treaty protection. The decision was against the assessee.

View Source

← Previous Next →

The ITAT held that where a domestic company declares, ...

ITAT: Domestic firms must pay dividend tax u/s 115-O, not DTAA rates, for non-resident shareholders.

January 9, 2025

Case Laws Income Tax AT

You may also like:

Taxability of dividends - dividend is declared, distributed or paid by a domestic company to a non-resident shareholder(s) - The Tribunal held that, additional income...

Refund of excess Dividend Distribution Tax - additional income tax payable by the domestic company shall be at the rate mentioned in section 115-O of the Act and not at...

Taxability of dividend as declared, distributed or paid by a domestic company to a non-resident shareholder(s) which attracts Additional Income Tax (Tax on Distributed...

As decided in Total Oil India (P.) Ltd., where a domestic company declares, distributes or pays dividend to a non-resident shareholder(s), the Additional Income-tax (Tax...

Rate of tax payable on Dividend Distribution Tax (DDT) - Distribution of dividends to its share holders (Germany) (Non-residents) - the additional income tax payable by...

Assessee company paid Dividend Distribution Tax (DDT) on dividends distributed to its holding company, a tax resident of Mauritius, at higher rates under the Income Tax...

Insertion of new section 115 BBDA-Tax on certain dividends received from domestic companies. - any income by way of dividend declared, distributed or paid by a domestic...

Refund of excess dividend Distribution Tax (DDT) paid - The Appellate Tribunal held that DTAA does not apply when a domestic company pays DDT under Section 115-O of the...

Exemption from tax under Section 115-O - Tax on distributed profit / Dividend Tax - Once it is held that the amount distributed or paid by Petitioner by way of dividend...

Rate of TDS on payment to non resident - Non-availability of PAN of non resident - the ld Tax Authorities below have fallen in error in not extending the benefits of...

Credit of Dividend Distribution Tax u/s 115-O - The AO, in preparing the statement of assessed total income, computed the DDT payable but did not adjust the DDT already...

Rate of TDS - Non-availability of PAN - Benefit of treaty - in case of payments made to non-residents, the assessee was entitled to deduct taxes at source at the rates...

Set off of deemed dividend against actual dividend paid by certain companies - dividend distribution tax as per section 115-O is in respect of dividend covered u/s...

Benefit of DTAA against Dividend Distribution Tax (DDT) - whether the benefit of DTAA can be extended to domestic company? - The Protocol with reference to Article 10 as...

Revision u/s 264 - Claiming benefit of DTAA - refund of Dividend Distribution Tax (DDT) which was paid wrongly - This was not a case where a deduction was made u/s 195...

Quick Updates: