RMTL/SEC/TDS ON DIVIDEND/2022-23 | June 20, 2022 |
BSE Ltd. | National Stock Exchange of India Ltd. |
Corporate Relationship Department | "Exchange Plaza", 5th Floor, |
1st Floor, New Trading Ring, | Bandra - Kurla Complex, |
Rotunda Building, P. J. Tower, | Bandra (E), |
Dalal Street, Fort, Mumbai - 400 001 | Mumbai - 400 051 |
Company Code : 520111 | Company Code : RATNAMANI |
Subject: Communication to the Shareholders of the Company for the Deduction of Tax at Source (TDS) on Dividend payment during the Financial Year 2022-23and Updation of their PAN, Email Address and Bank Account details
Dear Sir/Madam,
Pursuant to the amendments introduced by the Finance Act, 2020, effective from April 1, 2020, the Dividend Distribution Tax was abolished and the dividend income is taxable in the hands of the Shareholders. The Company is required to withhold tax at source from dividends paid to its Shareholders at the prescribed rates (plus applicable surcharge and cess), as may be notified from time to time.
In this regards, please note that the Company has sent E-mail Communications to all the Shareholders who had registered their email ID's with the Company / RTA / Depository Participants on June 18, 2022, about the intimation of Income Tax Rules w.r.t. Tax Deduction on Dividend, elaborating the process to be followed along with the necessary annexures and also for the updation of their PAN, Email Address, Mobile Number, Postal Address with PIN and Bank Account details.
The above information will be made available on the website of the Company at www.ratnamani.com.
Kindly take the above on your record. Thanking you,
Yours faithfully,
For, RATNAMANI METALS & TUBES LIMITED
ANIL MALOO
COMPANY SECRETARY & COMPLIANCE OFFICER
Encl.: As above
RATNAMANI METALS AND TUBES LIMITED
Corporate Identity Number (CIN): L70109GJ1983PLC006460
Regd. Office: 17, Rajmugat Society, Naranpura Char Rasta, Ankur Road,
Naranpura, Ahmedabad - 380013
Phone No.: 079-29601200/01/02,Fax No.: 079-29601210
E-mail:investor@ratnamani.com,Website:www.ratnamani.com,
Date: June 18, 2022
Ref.: Folio No. / DP ID & Client ID: ___________
Name of the Shareholder: ____________________
Dear Shareholder,
We hope this communique finds you safe and in good health.
We are pleased to inform you that the Board of Directors of your Company at its meeting held on May 18, 2022 recommended a dividend of Rs.14.00 per Equity Share, having face value of Rs.2.00 each (pre-bonus) to the Shareholders, which translates into dividend of Rs.9.33 per Equity Share, having face value of Rs.2.00 each (post-bonus), for the financial year ended on March 31, 2022. The said Dividend will be payable post approval of the Shareholders at the ensuing 38th Annual General Meeting to be held on Tuesday, August 9, 2022.
Pursuant to the amendments introduced by the Finance Act, 2020, the Company will be required to deduct tax at source at the prescribed rates on the dividend paid to its Shareholders w.e.f. April 1, 2020.
No tax will be deducted on payment of dividend to the Resident Individual Shareholders, if the total dividend to be paid during the financial year does not exceed Rs.5,000.00. The rate of tax deducted at source will vary depending on the category and residential status of the Shareholder and documents registered with the Company.
Hence, all the Shareholders are requested to ensure that the details such as Permanent Account Number (PAN), Residential Status, Category of Shareholder (e.g. Domestic Company, Foreign Company, Individual, Firm, LLP, HUF, Foreign Portfolio Investors / Foreign Institutional Investors, Government, Trust, Alternate Investment Fund-Category I, II or III, etc.), Email id and Address are updated, in their respective demat account(s) maintained with the Depository Participants. Please note that these details as available on Book Closure Date in the Register of Members will be relied upon by the Company, for the purpose of complying with the applicable withholding tax provisions. The Register of Members and Share Transfer Books of the Company will remain closed from Wednesday, August 3, 2022 to Tuesday, August 9, 2022 (both days inclusive) for determining the entitlement of the Shareholders to the dividend, if declared, for financial year ended on March 31, 2022.
- RESIDENT SHAREHOLDERS:
A1. Tax Deductible at Source for Resident Shareholders:
Sr. | Particulars | Rate of Deduction of | Documents required | ||||
No. | Tax at Source | ||||||
(1) | (2) | (3) | (4) | ||||
1 | Valid PAN updated in the Company's | 10.00% | No document required (if no | ||||
Register of Members | exemption is sought) | ||||||
2 | No PAN/Valid PAN not updated in the | 20.00% | No document required (if no | ||||
Company's Register of Members | exemption is sought) | ||||||
3 | Non-linking of PAN with Aadhaar, if | 20.00% | No document | required | |||
allotted | (Refer Note given below)* | ||||||
4 | Availability of lower / nil tax deduction | Rate specified in the | Lower/Nil tax | deduction |
certificate issued by Income Tax | certificate | certificate obtained from | |
Department u/s 197 of Income Tax Act, | Income Tax Authority | ||
1961 |
*Note: In terms of Section 139AA of the Act read with rule 114AAA of the Income Tax Rules, 1962, Aadhaar number is required to be linked with PAN by March 31, 2023. In case of failure of linking Aadhaar number with PAN within the prescribed timeline, PAN shall be considered inoperative and, in such scenario, tax shall be deducted at higher rate of 20.00%. Therefore, Shareholders are advised to link Aadhaar number with PAN if not done.
A2. No Tax Deductible at Source on Dividend payment to Resident Shareholders, if the Shareholders submit and register following documents as mentioned in column no.4 of the below table with the Company / RTA of the Company.
Sr. | Particulars | Withholding | Documents required | |||
No. | Tax Rate | |||||
(1) | (2) | (3) | (4) | |||
1 | Submission of Form 15G / Form 15H | NIL | Declaration in Form No. 15G | |||
(applicable to any individual) / Form | ||||||
No. 15H (applicable to an Individual | ||||||
who is 60 years and above), fulfilling | ||||||
certain conditions | ||||||
2 | Shareholders to whom Section 194 | NIL | Documentary evidence that the said | |||
of the Income Tax, 1961 does not | provisions are not applicable | |||||
apply such as Insurance Companies | ||||||
/ LIC / GIC | etc. | |||||
3 | Shareholders covered u/s 196 of | NIL | Documentary evidence for coverage u/s | |||
Income Tax Act, 1961 such as | 196 of Income Tax Act, 1961. | |||||
Government, RBI, | corporations | |||||
established by Central Act & mutual | TDS is not applicable on the dividend | |||||
funds specified u/s. 10(23D) of the | paid to MF specified under clause | |||||
Income-tax Act,1961. | (23D) of Section 10 of the Income Tax | |||||
Act, 1961. Such MF should provide a | ||||||
self-declaration that it is specified in | ||||||
Section 10 (23D) of the Income Tax | ||||||
Act, 1961, self-attested copy of PAN | ||||||
Card and registration certificate. | ||||||
4 | Category I and II Alternative | NIL | Self-declaration that AIF is specified in | |||
Investment Fund | Section 10 (23FBA) of the Income Tax | |||||
Act, 1961, self- attested PAN Card and | ||||||
SEBI registration certificate to claim | ||||||
benefit under Section 197A (1F) of the | ||||||
Income Tax Act, 1961. | ||||||
5 | ∙ | Recognised provident funds | NIL | Necessary documentary evidence as | ||
∙ | Approved superannuation fund | per Circular No. 18/2017 issued by | ||||
∙ | Approved gratuity fund | Central Board of Direct Taxes (CBDT) | ||||
∙ Other funds / authorities / Board / | ||||||
bodies covered as per the | ||||||
circular issued by the Central | ||||||
Board of Direct Taxes (the | ||||||
CBDT) | ||||||
6 | National | Pension | System Trust | NIL | Documentary evidence for coverage | |
referred to in Section 10(44) of the | u/s. 197A(1E) | |||||
Income Tax Act,1961 |
- NON-RESIDENTSHAREHOLDERS:
Withholding tax on dividend payment to non-resident shareholders, if the non-resident shareholders submit and register following documents as mentioned in column no.4 of the below table with the Company/RTA of the Company:
Sr. | Particulars | Withholding | Documents required | |||||||||
No. | Tax Rate | |||||||||||
(1) | (2) | (3) | (4) | |||||||||
1 | Foreign | Institutional | 20.00% | To avail beneficial rate of tax as per | ||||||||
Investors | (FIIs) | / | Foreign | (plus applicable | applicable tax treaty, following documents | |||||||
Portfolio | Investors | (FPIs) / | surcharge and | would be required: | ||||||||
Other | Non-resident | cess) OR Tax | ||||||||||
shareholders | Treaty Rate | 1. Tax Residency certificate (TRC) | ||||||||||
whichever is | issued by revenue authority of country | |||||||||||
beneficial | of residence of shareholder for the | |||||||||||
year in which dividend is received; | ||||||||||||
2. Self‐attested PAN allotted by the | ||||||||||||
Indian Income Tax authorities; | ||||||||||||
3. Form 10F duly filled in & signed; | ||||||||||||
4. Self-declaration for non-existence of | ||||||||||||
permanent establishment / fixed base | ||||||||||||
in India in the format provided and | ||||||||||||
specifically | addressed | to | the | |||||||||
Company; | ||||||||||||
5. FPI registration number / certificate, if | ||||||||||||
applicable | ||||||||||||
3 | Indian Branch of a Foreign | Nil | Lower tax deduction certificate u/s 195(3) | |||||||||
Bank | obtained from Income Tax Authority. | |||||||||||
Self-declaration confirming that the income | ||||||||||||
is received on its own account and not on | ||||||||||||
behalf of the Foreign Bank | ||||||||||||
4 | Availability of Lower/NIL tax | Rate specified in | Lower / Nil tax deduction certificate | |||||||||
deduction | certificate issued | certificate | obtained from Income Tax Authority | |||||||||
by Income Tax Department | ||||||||||||
u/s 197 of Income Tax Act, | ||||||||||||
1961 | ||||||||||||
5 | Any | non | - | resident | Nil | Necessary | documentary | evidence | ||||
shareholder exempted from | substantiating | exemption | from | WHT | ||||||||
WHT deduction as per the | deduction | |||||||||||
provisions | of | Income Tax | ||||||||||
Act or any other law such as | ||||||||||||
The | United | Nations | ||||||||||
Privileges | and | Immunities) | ||||||||||
Act 1947, etc. |
- To view / download Form 15G, Form 15H, Form 10F and Self-declaration Form, kindly click on the General tabon https://linkintime.co.in/client-downloads.html
- To view / download declaration for foreign shareholdersclick here
- To view / download Declaration regarding Category and Beneficial Ownership of Sharesclick here
- To view / download Declaration under Section 37BAclick here
- To view / download Details of beneficial owners of dividend incomeclick here
The aforesaid documents such as Form 15G / Form 15H / Form 10F / Self-declaration Form, documents under Section 196, 197A of the Income Tax Act, 1961, FPI Registration Certificate, Tax Residency
Certificate, Lower Tax certificate etc. can be uploaded on the link https://linkintime.co.in/formsreg/submission-of-form-15g-15h.htmlon or before Monday, July 25, 2022 to enable the Company to determine the appropriate TDS / withholding tax rate applicable. Any communication on the tax determination/deduction received post Monday, July 25, 2022 shall not be considered by the Company / RTA.
LOWER TAX RATE CERTIFICATE:
Where a taxpayer (shareholder) believes that his / her / its total income justifies withholding of tax at a lower rate, he / she / it can apply to the assessing officer for a certificate of withholding tax at a lower rate and the tax officer on being satisfied that lower deduction of TDS is justified shall issue a certificate for the same under Section 197 of the Income Tax, 1961.
You are requested to mention below credentials of Ratnamani Metals & Tubes Limited while applying lower tax rate certificate:
Permanent Account Number (PAN) | : | AABCR1742E |
Tax Account Number (TAN) | : | AHMR01411E |
INTRODUCTION OF SECTION 206AB OF THE ACT APPLICABLE TO ALL SHAREHOLDERS (RESIDENT AND NON-RESIDENT) WHO HAVE NOT FILED THEIR RETURN OF INCOME FOR THE PREVIOUS TWO FINANCIAL YEARS:
The Finance Act, 2021, has inter alia inserted the provisions of Section 206AB of the Income Tax Act ("Act") with effect from July 1, 2021 providing a higher rate to deduct TDS for non-filers of Return of Income. This section would apply to dividend payable by the Company to a "specified person", as defined.
The TDS rate in this section is higher of the following rates:
- twice the rate specified in the relevant provision of the Act; or
- twice the rate or rates in force; or
- the rate of 5.00%
As per Central Board of Direct Taxes vide Circular No. 11 of 2021 dated 21st June 2021, for determining TDS rate on Dividend, the Company will be using functionality of the Income-tax department to determine the applicability of Section 206AB of the Act. Accordingly, if at the time of deducting tax, the status of shareholder as shown by the system of the Income-tax Department, is reflected as "specified person", tax will be deducted at twice the applicable rate or 5.00%; whichever is higher.
TRANSFERRING CREDIT TO THE BENEFICIAL OWNER:
Primary Shareholder can submit declaration as per Rule 37BA of the Income Tax Rules, 1962 to provide credit of TDS on dividend pay-outs by the Company, separately to the joint Members (beneficiary Members) of the said shares on or before Monday, July 25, 2022. The said declaration received post July 25, 2022 shall not be considered. The Company shall not be responsible for providing the TDS credit to the beneficiary Member, in any manner, in the absence of prior intimation by the primary Member to the Company.
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.
Application of TDS rate is subject to necessary verification by the Company against the details of the shareholders as available in Register of Members as on Tuesday, August 2, 2022 and other documents available with the Company / RTA.
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 from you, there would still be an option available with you to file the return of income and claim an appropriate refund, if eligible. No claim shall lie against the Company for such taxes deducted.
In the event of any income tax demand (including interest, penalty, etc.) arising from any misrepresentation, inaccuracy or omission of information provided by the Shareholder/s, such Shareholder/s will be responsible to indemnify the Company and also, provide the Company with all information / documents and co-operation in any appellate proceedings.
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Ratnamani Metals & Tubes Limited published this content on 20 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 June 2022 06:03:04 UTC.