Date: 08/07/ 2021
Dear Shareholder,
As you are aware, the Board of Directors of the Company, at its Meeting held
on 29th May, 2021 have recommended a final dividend of Rs. 4/- (200%) per Equity Share of Rs. 2/-
each for the financial year ended 31st March, 2021. This dividend will be paid, subject to approval of
the Shareholders of the Company at the ensuing Annual General meeting (AGM) scheduled on Saturday,
31st July, 2021.
Pursuant to the changes introduced by the Finance Act, 2020, w.e.f. 1st April, 2021, 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 final dividend will be
paid to the Shareholders after deducting the tax at source as follows:
Resident Shareholder:
It may be noted that tax would not be deducted on payment of dividend to Resident Individual
Shareholder, if total dividend to be paid in a financial year does not exceed Rs. 5,000. Where
the dividend payable exceeds Rs. 5,000 for financial year 2021-2022, please refer to the table
below for the details:
|
Particulars
|
Applicable Rate
|
Documents required (if any)
|
|
With PAN
|
10%
|
Update/Verify the PAN, and the residential status as per Income Tax Act, 1961
(“Act”)if not already done, with the depositories (in case of shares held in demat
mode) and with the Company's Registrar and Transfer Agents – Link Intime India Private
Limited (in case of shares held in physical mode) by clicking on the following link https://www.linkintime.co.in/EmailReg/Email_Register.html.
If shareholder is classified as "specified person" as per the provision of section 206AB, tax
will be deducted at the rate higher of the following:
i. Twice the rate specified in the relevant
provision of the Income-tax Act; or
ii. Twice the rate or rates in force; or
iii. The rate of 5%.
Specified person means a person who has not filed the returns of income for both of the two
assessment years relevant to the two previous years immediately prior to
the previous year in which tax is required to be deducted, for which the time limit of filing
return of income under sub-section (1) of section 139 has
expired; and the aggregate of tax deducted at source and tax collected at source in his case
is rupees fifty thousand or more in each of these two previous
years.
For the purpose of identifying whether shareholder is “Specified Person” as per the
provision of section 206AB, the tax department has started functionality check on the tax
portal. The Company will be relying on the information verified by the utility available on
the Income Tax website.
|
|
Without PAN/
Invalid PAN
|
20%
|
|
|
Submitting Form 15G/ Form 15H
|
NIL
|
Declaration in Form No. 15G (applicable to any person other than a company or a firm) / Form
15H (applicable to an Individual who is 60 years and older), fulfilling certain
conditions. The Link to obtain the declaration form is given herein below.
|
|
Submitting Order under Section 197 of the Income Tax Act, 1961
|
Rate provided in the Order
|
Lower/NIL withholding tax certificate obtained from tax authority.
|
|
An Insurance Company as specified under Sec 194 of the Income Tax Act,1961)
|
NIL
|
Self-declaration that it has full beneficial interest with respect to the shares owned by it
along with Self attested PAN.
|
|
(a)Mutual Fund specified under clause (23D) of Section 10 of the Income Tax Act,
1961.
|
NIL
|
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.
|
|
(b)Alternative Investment Fund (AIF) established in India
|
|
Self-declaration that their income is exempt under Section 10 (23FBA) of the Income Tax
Act, 1961 and they are established as Category I or Category II AIF under the SEBI
Regulations, alongwith self-attested copy of PAN CARD and registration
certificate.
|
Non-Resident Shareholder:
|
Particulars
|
Applicable Rate
|
Documents required (if any)
|
|
Foreign Institutional Investors (FIIs) / Foreign Portfolio Investors (FPIs)
|
20% (plus applicable surcharge and cess)
|
· Update/Verify the PAN and legal
entity status as per the Act, if not already done, with the depositories or with the Company's
Registrar and Transfer Agent ("RTA"), as the case may be.
· Provide declaration whether the
investment in shares has been made under the general FDI route or under the FPI
route.
· Self-attested copy of SEBI
Registration certificate
|
|
Other Non-resident Shareholders
|
20% (plus applicable surcharge and cess)
OR
Tax Treaty Rate**
(whichever is lower)
|
Update/Verify the PAN and the residential status as per Income Tax Act, 1961, if not already
done, with the depositories (in case of shares held in demat mode) and with the Company's
Registrar and Transfer Agents – Link Intime
India Private Limited (in case of shares held in physical mode) by clicking on the
following link https://www.linkintime.co.in/EmailReg/Email_Register.html.
In order to apply the Tax Treaty rate, all the following documents would be
required:
1) Copy of Indian Tax Identification number (PAN), if available.
2) Valid Tax Residency Certificate (TRC) obtained from the tax authorities of
the country of which the Shareholder is a resident.
3) Form 10F duly filled and signed (The Link to obtain the
Form is given herein below).
4) Self-declaration 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 and
- Dividend income is not attributable/effectively connected to any
Permanent Establishment (PE) or Fixed Base in India.
(The Link to obtain the declaration form is given herein
below)
|
|
Submitting Order u/s 197 (i.e. lower or NIL withholding tax certificate)
|
Rate provided in the Order
|
Lower/NIL withholding tax certificate obtained from tax authority.
|
** 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.
Members should submit declarations in prescribed forms to avail the benefit of
non-deduction of tax at source by uploading the aforesaid documents as applicable, on the
following link https://linkintime.co.in/formsreg/submission-of-form-15g-15h.html on or before 23rd July, 2021 to enable the Company to determine the
appropriate TDS rates. No communication on the tax determination/deduction received post 23rd July,
2021 shall be considered for payment of the Dividend. It is advisable to upload the documents at the
earliest to enable the Company to collate the documents to determine the appropriate TDS
rates.
Kindly note that the aforementioned documents are required to be submitted to our
Registrars & Transfer Agents, Link Intime India Private Limited at its dedicated link mentioned
below- https://linkintime.co.in/formsreg/submission-of-form-15g-15h.html on or before 23rd July, 2021, 5.00 p.m. Indian Standard Time (IST) in order
to enable the Company to determine and deduct appropriate TDS/ withholding tax rate. No communication
on the tax determination/deduction shall be entertained post 23rd July, 2021, 5:00 p.m. (IST).
It may be further noted that in case the tax on said 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. All
communications/ queries in this respect should be addressed and sent to our RTA, Link Intime India
Private Limited at its email address unichemlabstaxexemption@linkintime.co.in
please note no tax exemption forms sent on this mail id will be entertained and this mail is
specifically for dividend tax related queries.
If the tax on said dividend is deducted at a higher rate in absence
of receipt of or satisfactory completeness of the afore-mentioned details/documents on or before 23rd
July, 2021, the Shareholder may claim an appropriate refund in the return of income filed with their
respective Tax authorities.
No claim shall lie against the Company for such taxes deducted.
The Company will arrange to e-mail a soft copy of the TDS certificate at the
Shareholder’s registered email ID, post payment of the said Dividend if approved by the
Shareholders at the ensuing AGM. Shareholders will also be able to see the credit of TDS in Form 26AS,
wherever PAN is available which can be downloaded from their e-filing account at https://incometaxindiaefiling.gov.in.
To view / download Form-10F click
here
To view / download Form-15G click
here
To view / download Form-15H click
here
To view / download Self declaration click
here
