Suprajit Engineering : Dividend Tax notes

Information of Tax on Final Dividend 2020‐21

Dividend

The Board of Directors at their Meeting held on 29.05.2021 had recommended Final Dividend of Re.1/‐ per Equity Share of face value of Re.1/‐each for the financial year 2020‐21 and the same was approved in the Annual General Meeting dated 03.09.2021. The Company had fixed 27.08.2021 as Record date for Payment of Final Dividend.

Pursuant to the changes introduced in the Finance Act 2020, w.e.f. 1.04. 2020, the Company would be required to withhold taxes at the prescribed rates on the dividend paid to its shareholders. The withholding tax rate would vary depending on the residential status of the shareholder and the documents submitted by them and accepted by the Company. Accordingly, the above‐referred Dividend will be paid after deducting the tax at source as follows:

Resident Shareholder

Particulars		Applicable	Documents required (if any)‐ Please submit with details of DPID
			withholding	- Client Id/ Folio No.
			tax Rate
If PAN registered		10.0%*	Update the PAN, if not already done, with the depositories (in
(In accordance			case of shares held in demat mode) and with the Company's
with Section 194			Registrar and Transfer Agents -M/s.Integrated Registry
of the I.T. Act)			Management Services Pvt Ltd, Bengaluru (in case of shares held in
				physical mode).
If PAN not		20%*	Tax is required to be deducted at source under Section 194 of the
registered/ Invalid		IT Act, at 10% on the amount of dividend where shareholder(s)
PAN registered			have registered their valid Permanent Account Number (PAN) and
				at a rate of 20% for cases wherein:
				a) the shareholder(s) do not have PAN / have not registered
				their valid PAN details in their account.
				b) the shareholder(s) have not linked their Aadhaar with their
				PAN by due date as specified, rendering the PAN as invalid
				c) the shareholder(s) have not filed their Income Tax returns for
				FY 2019‐20 and 2020‐21 and the aggregate of TDS and tax
				collected at source in his/her case is Rs. 50,000 or more, in
				each of these two previous years.
Submission	of	NIL	Declaration in Form No. 15G / Form 15H applicable to an
declaration	in		Individual who is 60 years and more, fulfilling certain conditions.*
Form	15G/ Form
15H	by Individual		Please download Form 15G / 15H from the Income Tax website
resident			www.incometaxindia.gov.in
shareholders			or
				https://www.integratedindia.in/Downloads/Dr/Form_15G.pdf
				https://www.integratedindia.in/Downloads/Dr/Form_15H.pdf

					*A declaration in Form No. 15G/15H, as the case may be
					furnished, to the Company to the effect that the tax on the
					estimated total income of the FY 2021‐2022 after including the
					income on which tax is to be deducted, will be NIL.
Submitting	Order	Rate provided	Submit certificate obtained from tax authority for Lower/NIL
under Section 197	in the Order	withholding tax
of the Income Tax
Act, 1961 (Act)
	Particulars	Applicable	Documents required (if any)‐ Please submit with details of
				withholding	DPID - Client Id/ Folio No.
				tax Rate
Persons		for	NIL	‐Documentary evidence that the said provisions u/s 194 are
whom	Section		not applicable.
194 of the Act is		‐a declaration that it has full beneficial interest with respect to
not	applicable		the shares owned by it along with PAN
(e.g. LIC, GIC)
Persons	Covered	NIL	Documentary evidence that the person is covered under said
under Section 196		Section 196 of the Act.
of	the	Act	(e.g.		Mutual Funds:
Mutual	Funds,
Govt.)				(i) Self‐declaration that they are specified in Section 10 (23D) of
					the Income Tax Act, 1961 along with self‐attested copy of PAN
					card and registration certificate.
					(ii) Also certificate that payment of by way of dividend in respect of
					any securities or shares are owned by it or in which it has full
					beneficial interest.
Category ‐ I & II	NIL	AIF established/incorporated in India ‐ Self‐declaration that its
Alternative			income is exempt under Section 10 (23FBA) of the Income Tax
Investment Funds		Act, 1961 and they are governed by SEBI regulations as
(AIF) registered		Category I or Category II AIF along with self‐attested copy of
with SEBI				the PAN card and registration certificate

• Notwithstanding the above, tax would not be deducted on payment of dividend to resident Individual shareholder, if total dividend to be paid in FY 2021‐22 does not exceed Rs. 5,000.

In terms of Rule 37BA of Income Tax Rules 1962 if dividend income on which tax has been deducted at source is assessable in the hands of a person other than the deductee, then deductee should file declaration with the Company in manner prescribed by Rules.

Non‐Resident Shareholder:
Particulars	Applicable	Documents required (if any)‐ Please submit with
	withholding	details of DPID - Client Id/ Folio No.
	tax Rate
Non‐resident shareholders	20% (plus	In order to apply the Tax Treaty rate, following
[including Foreign Institutional	applicable	documents would be required:
Investors (FIIs) / Foreign	surcharge	1. Self‐attested copy of Indian Tax Identification
Portfolio Investors (FPIs)]	and cess) OR	number Permanent Account Number (PAN), if
		available
	Tax Treaty	2. Tax Residency Certificate (TRC) (of FY 2021‐22 or
	Rate**	later) obtained from the tax authorities of the
		country of which the shareholder is a resident
	(whichever is	3. Form 10F duly filled and signed.
	lower)	Click here to download Form 10F
		https://www.integratedindia.in/Downloads/Dr/Fo
		rm_10F.pdf
		4. Self‐declaration (of FY 2021‐22 or later) from Non‐
		resident, primarily covering the following:
		‐Non‐resident is eligible to claim the benefit of
		respective tax treaty.
		‐Non‐resident receiving the dividend income is the
		beneficial owner of such income
		‐Dividend income is not attributable / effectively
		connected to any Permanent Establishment (PE) or
		Fixed Base in India
		Click here to download Self Declaration format
		https://www.hap.in/media/our_company/sharehold
		erinformation/2021/selfdeclarationforeigncompany.
		pdf
		https://www.hap.in/media/our_company/sharehold
		er_information/2021/selfdeclarationn
		on resident_other_than_foreigncompany.pdf
Submitting Order u/s 197 (i.e.	Rate	Lower/NIL withholding tax certificate obtained from
lower or NIL withholding tax	provided in	tax authority.
certificate)	the Order

**Further, as per Section 90 of the Act the Non‐resident shareholder has the option to be governed by the provisions of the Double Tax Avoidance Agreement (tax treaty) between India and the country of tax residence of the shareholder read with provisions laid down in Multilateral Instrument, wherever applicable. For this purpose, i.e. to avail Tax Treaty benefits, the non‐resident shareholder will have to provide documents as specified above.

Kindly note that the Company is not obligated to apply the beneficial Tax Treaty rates at the time of tax deduction/withholding on dividend amounts. Application of beneficial Tax Treaty Rate shall depend upon the completeness of the documents submitted by the Non‐ Resident shareholder and review to the satisfaction of the Company.

Shareholders who are exempted from TDS provisions through any circular or notification may provide documentary evidence in relation to the same, to enable the Company in applying the appropriate TDS on Dividend payment to such shareholder.

Shareholders holding shares under multiple accounts under different status/ category and single PAN, may note that, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts

The Company with M/s. Integrated Registry Management Services Pvt Ltd, Company's Registrar and Transfer Agent has enabled a shareholder web portal for submission of tax exemption forms/requested documents. Shareholders can submit their tax exemption forms and supporting documents directly on portal for purposes of tax deduction at source by Clicking the below link and selecting 'Bosch Limited' in the company drop down

https://www.integratedindia.in/ExemptionFormSubmission.aspx

We request shareholders to upload the relevant documents at aforementioned link on or before 16.09.2021.No communication on the tax determination/deduction received post 16.09.2021 shall be considered for payment of dividend.

For withholding of taxes as mentioned above, the residential status of the shareholders will be considered as per the data available with the Company/RTA/the Depository Participants (the "DPs"). In case there is change in their status, then the shareholders are requested to update their current status with the Company/RTA/the DPs.

If the tax on said Dividend is deducted at a higher rate in absence of receipt of or satisfactory completeness of the aforementioned details/documents. The shareholder may claim an appropriate refund in the return of income filed with their respective Tax authorities, if eligible.

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

The Company will arrange to email a soft copy of the TDS certificate at the shareholders registered email ID, post payment of the said dividend. Shareholders will also be able to see the credit of TDS in Form 26AS, which can be downloaded from their e‐filing account at https://incometaxindiaefiling.gov.inor https://www.incometax.gov.in/

Above communication on TDS sets out the provisions of law in a summary manner only from Withholding tax perspective. Shareholders should consult their tax advisors for the applicable tax provisions.

In case of any queries, the Shareholders may write to us at [e-mail] to RTA Email [e-mail]