Supported the IT division of a logistics company with the utilization of surplus profits

Our client is a wholly-owned subsidiary of a Danish shipping and logistics company. They provide IT support, software development, and back-office services to its group companies.

Provided a comparative table of Dividend Distribution vis-a-vis buy-back of shares with the following details:

• Total receipt in the hands of the shareholder
• Total outflow to the company
• Credit for Dividend Distribution Tax (DDT) to shareholders
• Tax payable by way of DDT/buy-back tax for shareholders
• Permissible limit for buy-back of shares
• Value price for buy-back of shares and its implication under the Income Tax Act

With our guidance, the client could take a calculated decision on buy-back and dividend distribution.

The comparative table created by the Nexdigm team helped their Corporate team get a quick glance at the available options, thus enabling them to make effortless decisions.