Atul Ltd 2020-21

76 Atul Ltd | Annual Report 2020-21 to be annexed or attached to the Balance Sheet for the financial year ended March 31, 2021, are annexed | attached. 04. The Register of Members and Share Transfer Books of the Company will remain closed from July 17, 2021, to July 23, 2021 (both days inclusive). 05. The dividend, if approved, will be paid to those Members whose names stand on Register of Members on July 16, 2021. The Members holding shares in the electronic form may please note that: i) Instructions regarding bank details that they wish to incorporate in future dividend warrants must be submitted to their Depository Participants (DPs). As per the regulation of National Securities Depository Ltd and Central Depository Services (India) Ltd, the Company is obliged to print bank details as furnished by these depositories, on the dividend warrants. ii) Instructions already given by the Members for shares held in the physical form will not be automatically applicable to the dividend paid on shares held in the electronic form. Fresh instructions regarding bank details must be given to the DPs. iii) Instructions regarding change in address, nomination and power of attorney must be given directly to the DPs. 06. The Members may note that the Income Tax Act, 1961, as amended by the Finance Act, 2020, mandates that dividends paid or distributed by a company after April 01, 2020, will be taxable in the hands of the Members. The Company will therefore be required to deduct Tax at Source (TDS) at the time of making the final dividend. In order to enable the Company to determine the appropriate TDS rate as applicable, the Members are requested to submit the documents in accordance with the provisions of the Income Tax Act, 1961. i) For Resident Members, TDS will be deducted under Section 194 of the Income Tax Act, 1961 at 10% on the amount of dividend declared and paid by the Company during the financial year 2021-22, provided PAN is registered by the Members. If PAN is not registered, TDS will be deducted at 20% rate as per Section 206AA of the Income Tax Act, 1961. H owever, no tax will be deducted on the dividend payable to resident individuals if the total dividend to be received by them during the financial year 2020-21 does not exceed ` 5,000. Please note that this includes the future dividends, if any, which may be declared by the Board in the financial year 2021-22. S eparately, in cases where the shareholder provides 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 the eligibility conditions are being met, no TDS will be deducted. ii) For non-resident Members, taxes are required to be withheld in accordance with the provisions of Section 195 of the Income Tax Act, 1961 at the rates in force. As per the relevant provisions of the Income Tax Act, 1961, the withholding tax will be at 20% rate (plus applicable surcharge and cess) on the amount of dividend payable to them. However, as per Section 90 of the Income Tax Act, 1961, the non-resident Members have the option to be governed by the provisions of the Double Tax Avoidance Agreement (DTAA) between India and the country of tax residence of the Members, if they are more beneficial to them. For this purpose, that is, to avail the Tax Treaty benefits, the non-resident Members will have to provide the following: a) Self-attested copy of Tax Residency Certificate (TRC) obtained from the tax authorities of the country of which the Members are a resident. b) Self-declaration in Form 10F if all the details required in this form are not mentioned in the TRC. c) Self-attested copy of the PAN card allotted by the Indian income tax authorities. d) Self-declaration, certifying the following points: • The Members are and will continue to remain tax residents of the countries of their residence during the financial year 2021-22 • The Members are eligible to claim the beneficial DTAA rate for the purposes of tax withholding on the dividend declared by the Company • The Members have no reason to believe that their claim for the benefits of the DTAA are impaired in any manner • TheMembers are the ultimate beneficial owners of their shareholding in the Company and dividend receivable from the Company • The Members do not have taxable presence or permanent establishments in India during the financial year 2021-22 07. Please note that the Company is not obligated to apply the beneficial DTAA rates at the time of tax deduction | withholding on dividend amounts. Application of the beneficial DTAA rate will depend upon the completeness and satisfactory review of the