(formerly Vedant Fashions Private Limited)
Registered Office: A501-A502,SDF-1, 4th Floor,Paridhan Garment Park,
19 Canal South Road,Kolkata-700 015, WB (IN)
CIN: L51311WB2002PLC094677
Phone: 033-61255353
- mail Id: secretarial@manyavar.com Website:www.vedantfashions.com
THIS COMMUNICATION IS IMPORTANT AND REQUIRES YOUR IMMEDIATE
ATTENTION
Date: XXXXXXX, 2022
Ref: Folio/DP Id & Client Id No:
Name of the Shareholder:
Dear Member,
We are pleased to inform you that the Board of Directors at its meeting held on May 09, 2022 recommended a dividend of ₹ 5 per Equity Share of ₹ 1/- each for the Financial Year ended March 31, 2022.
Pursuant to the Income Tax Act, 1961 ('Act'), as amended by the Finance Act, 2020, dividends paid or distributed by a company on or after April 1, 2020 shall be taxable in the hands of the shareholders. The Company shall therefore be required to deduct tax at source (at the applicable rates) at the time of payment of dividend, if approved, at the Annual General Meeting ('AGM') of the Company scheduled to be held on September 8, 2022. The withholding tax rate would vary depending on the residential status of the shareholder(s) and subject to verification of documents uploaded by the shareholder(s) in this regard at with KFin Technologies Limited, the Company's Registrar and Share Transfer Agent ("KFin") at https://ris.kfintech.com/form15 or emailed to einward.ris@kfintech.comor complianceofficer@manyavar.com
This communication provides a brief of the applicable Tax Deduction at Source ('TDS') provisions under the Act for Resident and Non-Resident shareholder categories.
A. Resident Shareholder
A.1 Rate of Withholding Tax
Particulars
With Permanent Account Number ('PAN') (Section194)
Without PAN / Invalid PAN / has not registered their valid PAN details in their account (Section206AA)
Applicable
Rate
10%
20%
Documents required (if any)
Update the PAN, if not already done, with the depositories (in case of shares held in DEMAT mode) and with the Company's Registrar and Transfer Agents (in case ofshares held in physical mode).
N.A.
Shareholders are requested to ensure Aadhar number is linked with PAN, as per the timelines prescribed. In case of failure of linking Aadhar with PAN within the prescribed timelines, PAN shall be considered inoperative and, in such scenario, tax shall be deducted at higher rate of 20% u/s 206AA of the Act.
We request you to inform us well in advance, if you have not linked your Aadhar with PAN as provided in section 139AA(2) read with Rule 114AAA of the Income Tax Rules, 1962 ('Rules'). The Company reserves its right to recover any demand raised subsequently on the Company for not informing the Company or providing wrong information about applicability of Section 206AA in your case.
A.2 No tax shall be deducted on the dividend payable to Resident shareholder(s) in the following cases.
Individual
Shareholders
Particulars
If the total dividend to be received by them during Financial Year ('FY') 2022-23 doesnot exceed Rs. 5,000.
Submitting Form
15G/ Form 15H under
section 197A of the
Act
Applicable | Documents required (if | ||
Rate | any) | ||
NIL | N.A. | ||
NIL | Signed declaration in Form No. | |||||
15G (applicable to individual) / | ||||||
Form 15H (applicable to an | ||||||
Individual who is of Age 60 | ||||||
years | and | older | claiming | |||
income | without deduction of | |||||
tax), | fulfilling | certain | ||||
conditions | along | with self- | ||||
attested copy of PAN card. | |||||||||||||||
Format of Form 15G and Form | |||||||||||||||
15H is enclosed as Annexure | |||||||||||||||
1 and 2 respectively. | |||||||||||||||
NIL | Self-attested copy of the | ||||||||||||||
Insurance | documentary | evidence | |||||||||||||
Company(ies) | for | supporting | the | exemption | |||||||||||
whom Section 194 of | status along with self-attested | ||||||||||||||
the | Act | is | not | copy of PAN card along with | |||||||||||
applicable | declaration | enclosed | as | ||||||||||||
Annexure 3. | |||||||||||||||
Persons | covered | NIL | Self-attested copy of the | ||||||||||||
under Section 196 of | documentary evidence that the | ||||||||||||||
the | Act | (e.g. | person is covered under said | ||||||||||||
Government, | Reserve | Section 196 of the Act along | |||||||||||||
Bank of India, Mutual | with self-attested copy of PAN | ||||||||||||||
Fund | specified under | card along | with | declaration | |||||||||||
section 10(23D) of the | enclosed as Annexure 3. | ||||||||||||||
Act, | corporation | ||||||||||||||
established | by | or | |||||||||||||
under | a | Central Act | |||||||||||||
which | has | income | |||||||||||||
Non- | |||||||||||||||
exempt from tax | |||||||||||||||
Individual | |||||||||||||||
Shareholders | |||||||||||||||
Alternative | NIL | Self-attested copy of the | |||||||||||||
Investment | Fund | documentary | evidence | ||||||||||||
('AIF') | established / | supporting | the | exemption | |||||||||||
incorporated | in | India | status along with self-attested | ||||||||||||
having exempt income | copy of PAN card along with | ||||||||||||||
under | section | declaration | enclosed | as | |||||||||||
10(23FBA) of the Act | Annexure 3. | ||||||||||||||
(as | per | CBDT | |||||||||||||
Notification | No. | ||||||||||||||
51/2015 | dated | 25 | |||||||||||||
June 2015) | |||||||||||||||
Nil | Self-attested copy of the | ||||||||||||||
documentary | evidence | ||||||||||||||
New Pension System | supporting | the | exemption | ||||||||||||
Trust established u/s | status along with self-attested | ||||||||||||||
10(44) | copy of PAN card along with | ||||||||||||||
declaration | enclosed | as | |||||||||||||
Annexure 3. | |||||||||||||||
A.3. In case where shareholders (both Individuals and Non-Individuals) provide certificate under section 197 of the Act for lower / NIL withholding of taxes, rate specified in the said certificate shall be considered on submission of self-attested copy thereof.
Application of NIL / lower withholding rate at the time of tax deduction / withholding on dividend amounts will depend upon the completeness and satisfactory review by the Company, of the documents submitted by the shareholders.
B. Non-Resident Shareholder:
Applicable
ParticularsDocuments required (if any) Rate
Foreign | Institutional | 20% | (plus | Copy | of | PAN | card. | |||
Investors | ('FIIs') | / | applicable | |||||||
Foreign | Portfolio | surcharge | and | In absence of PAN, specified information/ | ||||||
Investors | ('FPIs') | / | cess) OR | Tax | documents as per Rule 37BC of Income | |||||
All | Other | Non- | Treaty | Rate | Tax Rules, 1962 ('Rules') to be provided as |
resident shareholders (whichever is per Annexure 4. On non-furnishing of the
lower) | prescribed information/ documents as per | |||
Rule 37BC of the Rules, withholding tax of | ||||
20% (plus applicable surcharge and cess) | ||||
may | be | applicable. | ||
Further, as per Section 90 of the Act, nonresident shareholder has the option to be governed by the provisions of the Double Tax Avoidance Treaty (DTAA) between India and the country of tax residence of the shareholder, if they are more beneficial to them. For this purpose, i.e. to avail Tax Treaty benefits, following documents
would be required in addition to the above:
1. Self-attested copy of the Tax Residency Certificate ('TRC') (for the period April 2022 to March 2023) obtained from the tax authorities of the country of which such shareholder is a resident.
2. Form 10F duly filled and signed as per format enclosed as Annexure 5.
3. In case of Foreign Institutional Investors and Foreign Portfolio Investors, self-attested copy of SEBI registration certificate.
4. Self-declaration (as per format enclosed as Annexure 6) from Non-resident shareholder for the financial year April 2022 to March 2023 in which dividend is received, primarily covering the following:
Non-resident is eligible to claim the benefit of respective tax treaty.
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Vedant Fashions Ltd. published this content on 26 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2022 01:50:02 UTC.