RCD 1RCD 1
[Paragraph 10 B.6(i)]
Application for remittance of dividend by Indian
companies to their non-resident share holders
Instructions:
1. | The application should be completed by the Indian company in duplicate in a consolidated manner covering all the non-resident shareholders to whom dividend is to be remitted and submitted to an authorised dealer in foreign exchange. Particulars of dividend paid in India to mandatee banks should also be furnished against item No.5. |
2. | Part B of the application should be completed by the Companys auditors. |
3. | For remittance of interim dividend application may be made by letter enclosing only form RCD2 and copy of Board Resolution. |
4. | Authorised dealers must properly scrutinise the application (and the documents attached to it) to ensure that it is complete in all respects. |
5. | Authorised dealer should also ensure that the companys auditors have given the required certificate as indicated in Part B of the application. |
6. | The remittance may be allowed only if the authorised dealer is satisfied that the application is in order and is covered by the delegated authority. |
7. | As and when the remittance is allowed, one copy of the application should be submitted to Reserve Bank after completing the certificate given in Part C of the application. |
Documentation :
8. | Form A2 duly filled up and signed by the applicant. |
9. | Certified copy of the companys audited Balance sheet and Profit and Loss Account Statement for the year/period to which the dividend relates. |
10. | Certified copy of the Resolution passed at the Annual General Meeting of the company declaring the dividend. |
11. | Form RCD 2 giving particulars of the non-resident shareholders to whom dividend is to be remitted, details of their shareholding in the company and the amount of dividend to be remitted. |
12. | Certified copies of Reserve Banks approvals obtained for issue/purchase/holding of the shares on which dividend is to be remitted abroad. |
PART A General Information |
1. | Name and address of the company | |
2. | Details of capital structure and non-resident interest | |
| | |
| (A) | Issued and paid-up capital | |
| | (a) | Equity | (a) | Rs...........divided into |
| | | | | .............shares of |
| | | | | Rs...........each. |
| | (b) | Preference | (b) | Rs...........divided into |
| | | | | .............shares of |
| | | | | Rs...........each. |
| | | | Equity | Preference |
| (B) | Held by | No. | Face | % | No. | Face | % |
| | | | of | value | | of | value | |
| (I) | Non-residents | shares | Rs. | | Shares | Rs. | |
| | (a) | Corporate bodies | | | | | | |
| | | (i) | with repatriation benefits | | | | | | |
| | | (ii) | without repatriation benefits | | | | | | |
| | (b) | Individuals | | | | | | |
| | | (i) | with repatriation benefits | | | | | | |
| | | (ii) | without repatriation benefits | | | | | | |
| | (II) | Residents | | | | | | |
| | | | TOTAL | | | | | | |
3. | Particulars of dividend to be remitted | | |
| (i) | Year/Period for which the dividend is payable | (i) | |
| (ii) | Rate of dividend | (ii) | |
| (iii) | Gross amount of dividend payable to non-resident shareholders | (iii) | |
| (iv) | Tax deducted at source | (iv) | |
| (v) | Net amount to be remitted from India | (v) | |
Note: | Particulars of each of the non*resident shareholders to whom dividend is to be remitted, details of his/its shareholding in the company and the amount of dividend to be remitted should be furnished separately in form RCD 2. | |
4. | Whether any interim dividend has been remitted for the year/period relating to the proposed dividend remittance (vide item 3 above); if so, please state: | |
| (a) | Gross amount of interim dividend | | (a) | Rs.......... |
| (b) | Tax deducted at source | | (b) | Rs.......... |
| (c) | Net amount remitted | | (c) | Rs.......... |
| (d) | Date on which the remittance was made | | (d) | ............... |
5. | Particulars of net amount of interim/final dividend paid/payable to non-resident shareholders in India other than those included in RCD 2 for the year: | | Interim | Final |
| (a) | on investments held with repatriation benefits | (a) | |
| (b) | on investments held without repatriation benefits | (b) | |
6. | Any other relevant information which the applicant wishes to furnish in support of this application. | |
We hereby certify that the particulars given hereinabove and also in the annexure(s) /schedule(s) are true and correct to the best of our knowledge and belief.
Place | : | ................. | | | | .......................................................................... |
| | | | Stamp | | (Signature of Applicant/Authorised Official) |
Date | : | ................. | | | Name:............................................................... |
| | | | | | Designation:.................................................... |
PART B - Auditors Certificate
We have verified the relevant books and records of...................... (Name of the company) and hereby certify that:
(a) | all the requirements of the Companies Act, 1956 have been complied with by the applicant company while declaring the dividend for the year ended .........; |
| |
(b) | the amount of tax deducted at source from the gross dividend payable to the non-resident beneficiaries mentioned in the accompanying form RCD 2 is in conformity with the relevant provisions of the Income Tax Act/Finance Act; |
| |
(c) | The terms of approval for the foreign equity participation in the company (if any) do not stipulate that remittances of dividend are required to be balanced by export earnings of the company for the prescribed period; |
OR
(c) | The terms of approval for the foreign equity participation in the Indian company stipulate that remittances of dividend are reqired to be balanced by export earnings of the company for the prescribed period and these requirements have been satisfied; |
*(d) | The company is not engaged in agricultural/plantation activities. |
OR
*(d) | The company is engaged in agricultural/plantation activities and holds the necessary permission of Reserve Bank to carry on such activities under Section 29(1)(a)/29(1A)/29(2)(a) of FERA, 1973 vide its approval |
| No........... dated............. |
| *(Applicable in the case of FERA companies, i.e. companies in which the non-resident interest exceeds forty percent). |
| | | | | | ..................................... |
Date | : | ................. | | Stamp | | (Signature of Auditors) |
| | | | | |
| | | | | | Name:............................................................... |
| | | | | | |
| | | | | | Full Address..................................................... |
| | | | | | .......................................................................... |
| | | | | | Registration No................................................ |
PART C - Certificate by Authorised Dealer
We certify that the documentary evidence furnished by the applicant company has been verified by us and the shares on which the dividend became payable are held by the non-resident shareholders with the Reserve Banks approval and such approval does not prohibit remittance of dividend outside India.
We further certify that the amount of dividend indicated above has been remitted to the beneficiary/ies and/or their bankers in terms of the authority delegated to us. The relative form A2 has been/will be sent to Reserve Bank in the R Return of the period ended.........
| | | | | | .......................................................................... |
Date | : | ................. | | Stamp | | (Signature of Authorised Official) |
| | | | | |
| | | | | | Name :............................................................... |
| | | | | | |
| | | | | | Designation :..................................................... |
Name & Address of Authorised Dealer ..........................