Eicher Motors : Communication on Tax Deduction at Source (TDS) on Dividend

01

NOTICE

Communication On Tax Deduction At Source (Tds) On Dividend

In accordance with the provisions of the Income-tax Act, 1961 ("IT Act") as amended from time to time, read with the provisions of the Finance Act, 2020, with effect from April 1, 2020, dividend declared by the Company is taxable in the hands of the members and the Company is required to deduct tax at source ("TDS") on dividend at the applicable rates.

Please take note of the below TDS provisions and information/document requirements for each member:

1. RESIDENT MEMBERS:
   A.1 No tax shall be deducted on payment of dividend to the resident individual members, if the total dividend for a financial year does not exceed Rs. 5,000 (Rupees Five Thousand).
   A.2 Tax shall be deducted from Dividend paid to resident members (other than category prescribed under A.1 above) as per the details provided below:

Particulars	Applicable rate of Tax	Declaration/ documents required
Where valid PAN is updated with the Depository	10%	N.A.
Participant (in case shares are held in dematerialized
form) or with Company's Registrar and Transfer Agent
("RTA") i.e. Link Intime India Private Limited (in case
shares are held in physical form) and no exemption is
sought by the resident member
No PAN/ Invalid PAN with the Depository Participant	20%	N.A.
or RTA or member has not filed his Income Tax
return for last two years and TDS in his personal
case was exceeding Rs. 50,000 in each those years,
pursuance to section 206AB of Income Tax Act and
no exemption sought by member

Where lower/ nil tax deduction certificate is issued by Income Tax Department under section 197 of the Act

Rate specified in Lower tax withholding certificate obtained from Income Tax Department

• Copy of PAN card
• Copy of lower tax withholding certificate obtained from Income Tax Department

A.3 No tax shall be deducted on Dividend to resident members if the members submit documents mentioned in the below table with the RTA:

Particulars	Declaration/ documents required
Member (other than a Company or a	 Copy of PAN card
Firm) furnishing Form 15G/ 15H	 Form 15G (applicable to any person other than a Company or a Firm) / Form 15H
	(applicable to an Individual above the age of 60 years), provided that all the required
	eligibility conditions are met. Format of Form 15G and 15H are given in the link below
Submitting Order under Section 197 of	 Copy of PAN card
the Income Tax Act, 1961 (Act)	 Self-declaration along with lower/NIL withholding tax certificate obtained from tax
	authority
Members (e.g. LIC, GIC) for whom Section	 Copy of PAN card
194 of the Act is not applicable	 Self-declaration along with adequate documentary evidence to the effect that no tax
	withholding is required pursuant to the provisions of Section 194 of the Act
Category I and II Alternative Investment	 Copy of PAN card
Fund (AIF)	 Self-declaration that the AIF is registered with SEBI as per SEBI Regulations along with
	copy of registration certificate and that their income is exempted from Tax
Persons covered under Section 196 of	 Copy of PAN card
the Act (e.g. Mutual Funds, Govt.)	 Self-declaration along with documentary evidence that the person is covered under
	said Section 196 of the Act

02

NOTICE

1. NON-RESIDENTMEMBERS:
   As per Section 90 of the Income Tax Act, the non-resident member has the option to be governed by the provisions of the Double Tax Avoidance Treaty between India and the country of tax residence of the member, if they are more beneficial to them. Please refer to the below table for the details of documents to avail Tax Treaty benefits:

Particulars	Applicable rate
Non-resident Members	20% plus applicable
(including Foreign	surcharge and cess
Institutional Investors	OR
(FIIs) / Foreign Portfolio	Tax Treaty Rate
Investors (FPIs))	(whichever is lower)

Declaration/ documents required

If the member wants to avail the tax rates as per the tax treaty, following documents would be required:

• Self-attestedcopy of the Permanent Account Number (PAN) allotted by the Indian Income Tax authorities
• Self-attestedcopy of Tax Residency Certificate (TRC) issued by the competent authority of the country of member's residency, evidencing and certifying the tax residency status of the member in the country of residency during the Financial Year 2021-22
• Completed and duly signed Form 10F in the format given in the link
• Self-declarationin the format given in the link below, certifying that -

i.	You will continue to remain a tax resident of the country of your residency
	during the Financial Year 2021-22;
ii.	You are eligible to claim the beneficial DTAA rate for the purposes
	of tax withholding on dividend declared by the Company;
iii.	You have no reason to believe that your claim for the benefits of the DTAA is
	impaired in any manner;
iv.	You are the beneficial owner of your shareholding in the Company and
	dividend receivable from the Company; and
v.	You do not have a taxable presence or a permanent establishment in India
	during the Financial Year 2021-22

Submitting Order under	Rate provided in the	Lower/NIL withholding tax certificate obtained from tax authority
Section 197 of the Income	Order
Tax Act, 1961 (Act)

Application of beneficial DTAA Rate shall depend upon the completeness and satisfactory review by the Company/RTA, of the documents submitted by Non-Resident members.

For all members who are seeking exemption from tax on dividend:

The aforementioned forms (duly completed, signed and scanned) shall be submitted to by clicking the URL https://www.linkintime.co.in/formsreg/submission- of-form-15g-15h.htmland declaration (duly completed, signed and scanned) by clicking the URL https://web. linkintime.co.in/DTAT/form.html with our RTA, Link Intime India Private Limited by August 13, 2021 in order to enable the Company to determine and deduct appropriate TDS / withholding tax, as may be applicable.

Please note that all the Tax related documents should be uploaded through above link only and documents, if sent on other email ids will not be entertained.

It may be further noted that in case the tax on dividend is deducted at a higher rate in absence of receipt of

the aforementioned details/documents, there would still be an option available with the member to file the return of income and claim an appropriate refund, if eligible.

No claim shall lie against the Company for such taxes deducted.

All communications/ queries in this respect should be addressed and sent to our RTA, Link Intime India Private Limited at its email address at [e-mail].

To view / download Form 15G click here https://linkintime. co.in/website/GoGreen/2021/Update/Eicher_Motors_ Limited/FORM_15G.pdf

To view / download Form 15H click here https://linkintime. co.in/website/GoGreen/2021/Update/Eicher_Motors_ Limited/FORM_15H.pdf

To view / download Form 10F click here https://linkintime. co.in/website/GoGreen/2021/Update/Eicher_Motors_ Limited/Form_10F.pdf

To view / download - Self declaration click here https://linkintime.co.in/website/GoGreen/2021/Update/ Eicher_Motors_Limited/Deduction_of_Tax_at_Source_ from_Dividend.pdf

This Communication is not exhaustive and does not purport to be a complete analysis or listing of all potential tax consequences in the matter of dividend payment. Members should consult their tax advisors for requisite action to be taken by them.