Announcements & Notices

Note for the Members of Advanced Enzyme Technologies Limited (“Company”) on Tax Deduction at Source on Final Dividend for the Financial Year 2022-23 (If approved at ensuing Annual General Meeting):

Pursuant to the provisions of Finance Act, 2020, the Company shall deduct tax at source (“TDS”) in accordance with the provisions of the Income Tax Act, 1961 as may be amended from time to time (“IT Act”), from the Final Dividend, as Dividend income is taxable in the hands of the Members, effective April 01, 2020.

1. To enable the Company to determine the appropriate TDS rate as may be applicable, Members are requested to submit the following document(s) and details, as applicable, by email to the Company at tds.dividend@advancedenzymes.com on or beforeAugust 02, 2023:

a) In case of Resident Individual Members: TDS on Dividend under the provisions of Section 194 of the IT Act (or as may be amended / notified by the Government of India, from time to time):

• TDS at 10% on the Dividend amount, for Members having valid PAN registered in their respective folio/demat account.
• TDS at 20% in cases:

1. where Member(s) do not have PAN/Invalid PAN/have not provided or registered their PAN details in their respective folio/demat account/ Specified Person as per Section 206AB of the IT Act (refer * Note (e)), or
2. where the Member(s) have not linked their Aadhar to the PAN within the prescribed timelines (unless there is an extension in due date), and in such cases PAN will be deemed inoperative and TDS will be required to be deducted at a higher rate under Section 206AA of the IT Act; or
3. where Member(s) have not filed return of income tax for any of the last two assessment years for which due date of return filing has expired and the aggregate of TDS as well and Tax collected at source (TCS) in each of these two previous financial years in case of the Member(s), is Rs 50,000 or more.

• No tax is required to be deducted on the Dividend amount payable to a resident individual Member(s) if the total Dividend to be received by such Member(s) during financial year 2023-24 does not exceed ₹ 5,000; or in cases where Member(s) provides Form 15G (applicable to any person other than a HUF, Company or a Firm) / Form 15H (applicable to individuals aged 60 years or more) subject to the fulfillment of the conditions as may be specified in the IT Act, from time to time. The Member(s) may also submit any other document(s) as prescribed under the IT Act to claim a lower or NIL tax. Valid PAN is mandatory for Members providing Form 15G / 15H or any other document(s) as mentioned herein.

b) In case Resident Non Individual Members:

• Insurance Companies: For Public and other Insurance companies, a declaration that it has full beneficial interest with respect to the shares owned by it, along with self-attested copy of PAN;
• Mutual Funds: Self-declaration that they are specified in Section 10 (23D) of the IT Act along with self-attested copy of PAN card and SEBI registration certificate;
• Alternative Investment Fund (“AIF”): AIF established/incorporated in India – Self-declaration that its income is exempt under Section 10 (23FBA) of the IT Act and they are governed by SEBI regulations as Category I or Category II AIF along with self-attested copy of the PAN card and SEBI registration certificate;
• Other Non-Individual Members: Documentary evidence along with an attested copy of the PAN who are exempted from deduction of tax under Section 194 of the IT Act and categories who are covered under Section 196 of the IT Act.

c) In case where the Members provide certificate under Section 197 of the IT Act for lower / NIL withholding of taxes, rate specified in the said certificate shall be considered based on submission of self-attested copy of the same.In case the Non-Resident’s PAN falls under the Specified Category definition as per section 206AB of the IT Act, provide the No-PE declaration to exclude from the applicability of higher rate under the said section 206AB (Refer * Note (e))

d) In case of non-resident Member(s): Taxes are required to be withheld pursuant to the provisions of Section 195 and other applicable provisions of the IT Act, as per the rates applicable, from time to time. The withholding tax rate on the amount of Dividend payable shall be 20% plus applicable surcharge and cess, or as may be notified by the Government of India, from time to time. As per the IT Act, 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 said Member(s). The non-resident Member(s) shall provide the following document(s) to avail the available benefits under the provisions of DTAA:

1. Copy of the PAN card allotted by the authorities in India (duly certified by the Member) or details prescribed under Rule 37BC of the Income Tax Rules, 1962
2. Copy of Tax Residency Certificate (TRC) for the financial year 2023-24 obtained from the revenue authorities of the country of tax residence (duly certified by the Member)
3. Self-declaration in Form 10F
4. Self-declaration by the Member(s) for having no permanent establishment in India in accordance with the applicable tax treaty
5. Self-declaration of beneficial ownership by the Member(s)
6. Any other document(s) as may be prescribed under the provisions of the IT Act and/or required by the Company thereto, for lower withholding of taxes if applicable (duly certified by the Member).

In case of Foreign Institutional Investors / Foreign Portfolio Investors: Tax will be deducted under the provisions of Section 196D of the IT Act at the rate of 20% plus applicable surcharge and cess or the rate provided in DTAA whichever is more beneficial, subject to the submission of above documents.

e) * Note: Section 206AB of the IT Act:

Rate of TDS @ 10% under Section 194 of the Act is subject to provisions of Section 206AB of the IT Act (effective from July 1, 2021) which provides that tax is to be deducted at higher of the following rates in case of payments to the specified persons:

• at twice the rate specified in the relevant provision of the IT Act; or
• at twice the rate or rates in force; or
• at the rate of 5%.

‘Specified Person’ as defined under Section 206AB (3) of the IT Act, is someone who satisfies the following conditions:

• A person who has not filed income tax return for previous year prior to the previous year in which tax is required to be deducted, for which the time limit of filing of return of income under Section 139(1) of the IT Act has expired; and
• The aggregate of TDS and TCS in whose case is Rs. 50,000/- or more in the said previous year. Further, Non-resident shareholders who do not have permanent establishment in India are excluded from the scope of a ‘Specified Person’.

In cases where Sections 206AA and 206AB of the IT Act are applicable i.e. the shareholder has not submitted PAN and has not filed the income tax return, tax will be deducted at higher of the rates prescribed in the respective sections. The Central Board of Direct Taxes has provided a new functionality for compliance check under Section 206AB of the IT Act. Accordingly, for determining TDS rate on Dividend, the Company will be using said functionality to determine the applicability of Section 206AB of the IT Act.

2. The relevant forms and declarations as mentioned above can be downloaded from the website of the Company, www.advancedenzymes.com/investors/announcements-notices/. You are requested to provide all the requisite documents and details on or before August 02, 2023 to enable the Company to determine the TDS/withholding tax rate on the dividend amount. No communication on the tax rate, tax deduction / determination shall be entertained by the Company after August 02, 2023
3. Application of TDS rate is subject to necessary due diligence including verification by the Company of the details of the Member(s) available asper the Register of Members on the Record date, documents /other information available in the records of the Company / its Registrar & Transfer Agents (RTA) and other reliable source(s). The Company may deduct TDS on Dividend at the maximum applicable rate, in case of any incomplete, conflicting or ambiguous information and/or the valid proper documents and/or information not provided by the Member(s).
4. In case TDS is deducted at a higher rate, an option would be available with the Member(s), as may be eligible subject to the applicable provisions, to file the return of income and claim an appropriate refund.No claim shall lie against the Company for such taxes deducted. Shareholders will 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 eportal.incometax.gov.in (or any other website as may be notified by the authority)

You may download the respective forms from the following links:

Disclaimer: The Notes on TDS as mentioned herein, set out the summary of applicable material provisions in India pertaining to TDS on Dividend payment by the company, and is subject to amendment(s), if any from time to time and does not purport to be a complete and/or detailed analysis or listing of all potential tax consequences and/or applicability. The Members should consult their own tax advisor, as may be required, for the tax provisions applicability to them.