Vedant Fashions : Communication to shareholders as per Reg 30

(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: [phone]

• mail Id: [e-mail] 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 [e-mail] [e-mail]

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.