Our client is a wholly-owned subsidiary of a Danish
shipping and logistics company. They provide IT
support, software development, and back-office
services to its group companies.
Provided a comparative table of Dividend
Distribution vis-a-vis buy-back of shares with the
following details:
- Total receipt in the hands of the shareholder
- Total outflow to the company
- Credit for Dividend Distribution Tax (DDT) to
shareholders
- Tax payable by way of DDT/buy-back tax for
shareholders
- Permissible limit for buy-back of shares
- Value price for buy-back of shares and its
implication under the Income Tax Act
With our guidance, the client could take a calculated
decision on buy-back and dividend distribution. The comparative table created by the Nexdigm team
helped their Corporate team get a quick glance at the
available options, thus enabling them to make
effortless decisions.
