Ratnamani Metals & Tubes : Communication to shareholders as per Reg 30

RMTL/SEC/TDS ON DIVIDEND/2022-23	June 20, 2022
BSE Ltd.	National Stock Exchange of India Ltd.
Corporate Relationship Department	"Exchange Plaza", 5th Floor,
1st Floor, New Trading Ring,	Bandra - Kurla Complex,
Rotunda Building, P. J. Tower,	Bandra (E),
Dalal Street, Fort, Mumbai - 400 001	Mumbai - 400 051
Company Code : 520111	Company Code : RATNAMANI

Subject: Communication to the Shareholders of the Company for the Deduction of Tax at Source (TDS) on Dividend payment during the Financial Year 2022-23and Updation of their PAN, Email Address and Bank Account details

Dear Sir/Madam,

Pursuant to the amendments introduced by the Finance Act, 2020, effective from April 1, 2020, the Dividend Distribution Tax was abolished and the dividend income is taxable in the hands of the Shareholders. The Company is required to withhold tax at source from dividends paid to its Shareholders at the prescribed rates (plus applicable surcharge and cess), as may be notified from time to time.

In this regards, please note that the Company has sent E-mail Communications to all the Shareholders who had registered their email ID's with the Company / RTA / Depository Participants on June 18, 2022, about the intimation of Income Tax Rules w.r.t. Tax Deduction on Dividend, elaborating the process to be followed along with the necessary annexures and also for the updation of their PAN, Email Address, Mobile Number, Postal Address with PIN and Bank Account details.

The above information will be made available on the website of the Company at www.ratnamani.com.

Kindly take the above on your record. Thanking you,

Yours faithfully,

For, RATNAMANI METALS & TUBES LIMITED

ANIL MALOO

COMPANY SECRETARY & COMPLIANCE OFFICER

Encl.: As above

RATNAMANI METALS AND TUBES LIMITED

Corporate Identity Number (CIN): L70109GJ1983PLC006460

Regd. Office: 17, Rajmugat Society, Naranpura Char Rasta, Ankur Road,

Naranpura, Ahmedabad - 380013

Phone No.: 079-29601200/01/02,Fax No.: 079-29601210

E-mail:[e-mail],Website:www.ratnamani.com,

Date: June 18, 2022

Ref.: Folio No. / DP ID & Client ID: ___________

Name of the Shareholder: ____________________

Dear Shareholder,

We hope this communique finds you safe and in good health.

We are pleased to inform you that the Board of Directors of your Company at its meeting held on May 18, 2022 recommended a dividend of Rs.14.00 per Equity Share, having face value of Rs.2.00 each (pre-bonus) to the Shareholders, which translates into dividend of Rs.9.33 per Equity Share, having face value of Rs.2.00 each (post-bonus), for the financial year ended on March 31, 2022. The said Dividend will be payable post approval of the Shareholders at the ensuing 38th Annual General Meeting to be held on Tuesday, August 9, 2022.

Pursuant to the amendments introduced by the Finance Act, 2020, the Company will be required to deduct tax at source at the prescribed rates on the dividend paid to its Shareholders w.e.f. April 1, 2020.

No tax will be deducted on payment of dividend to the Resident Individual Shareholders, if the total dividend to be paid during the financial year does not exceed Rs.5,000.00. The rate of tax deducted at source will vary depending on the category and residential status of the Shareholder and documents registered with the Company.

Hence, all the Shareholders are requested to ensure that the details such as Permanent Account Number (PAN), Residential Status, Category of Shareholder (e.g. Domestic Company, Foreign Company, Individual, Firm, LLP, HUF, Foreign Portfolio Investors / Foreign Institutional Investors, Government, Trust, Alternate Investment Fund-Category I, II or III, etc.), Email id and Address are updated, in their respective demat account(s) maintained with the Depository Participants. Please note that these details as available on Book Closure Date in the Register of Members will be relied upon by the Company, for the purpose of complying with the applicable withholding tax provisions. The Register of Members and Share Transfer Books of the Company will remain closed from Wednesday, August 3, 2022 to Tuesday, August 9, 2022 (both days inclusive) for determining the entitlement of the Shareholders to the dividend, if declared, for financial year ended on March 31, 2022.

1. RESIDENT SHAREHOLDERS:

A1. Tax Deductible at Source for Resident Shareholders:

Sr.	Particulars		Rate of Deduction of		Documents required
No.			Tax at Source
(1)	(2)		(3)			(4)
1	Valid PAN updated in the Company's	10.00%			No document required (if no
	Register of Members					exemption is sought)
2	No PAN/Valid PAN not updated in the	20.00%			No document required (if no
	Company's Register of Members					exemption is sought)
3	Non-linking of PAN with Aadhaar, if	20.00%			No document	required
	allotted					(Refer Note given below)*
4	Availability of lower / nil tax deduction		Rate specified in the		Lower/Nil tax	deduction

	certificate issued by Income Tax	certificate	certificate obtained from
	Department u/s 197 of Income Tax Act,		Income Tax Authority
	1961

*Note: In terms of Section 139AA of the Act read with rule 114AAA of the Income Tax Rules, 1962, Aadhaar number is required to be linked with PAN by March 31, 2023. In case of failure of linking Aadhaar number with PAN within the prescribed timeline, PAN shall be considered inoperative and, in such scenario, tax shall be deducted at higher rate of 20.00%. Therefore, Shareholders are advised to link Aadhaar number with PAN if not done.

A2. No Tax Deductible at Source on Dividend payment to Resident Shareholders, if the Shareholders submit and register following documents as mentioned in column no.4 of the below table with the Company / RTA of the Company.

Sr.			Particulars	Withholding	Documents required
No.					Tax Rate
(1)			(2)		(3)	(4)
1	Submission of Form 15G / Form 15H	NIL	Declaration in Form No. 15G
						(applicable to any individual) / Form
						No. 15H (applicable to an Individual
						who is 60 years and above), fulfilling
						certain conditions
2	Shareholders to whom Section 194	NIL	Documentary evidence that the said
	of the Income Tax, 1961 does not		provisions are not applicable
	apply such as Insurance Companies
	/ LIC / GIC	etc.
3	Shareholders covered u/s 196 of	NIL	Documentary evidence for coverage u/s
	Income Tax Act, 1961 such as		196 of Income Tax Act, 1961.
	Government, RBI,	corporations
	established by Central Act & mutual		TDS is not applicable on the dividend
	funds specified u/s. 10(23D) of the		paid to MF specified under clause
	Income-tax Act,1961.			(23D) of Section 10 of the Income Tax
						Act, 1961. Such MF should provide a
						self-declaration that it is specified in
						Section 10 (23D) of the Income Tax
						Act, 1961, self-attested copy of PAN
						Card and registration certificate.
4	Category I and II Alternative	NIL	Self-declaration that AIF is specified in
	Investment Fund			Section 10 (23FBA) of the Income Tax
						Act, 1961, self- attested PAN Card and
						SEBI registration certificate to claim
						benefit under Section 197A (1F) of the
						Income Tax Act, 1961.
5	∙	Recognised provident funds	NIL	Necessary documentary evidence as
	∙	Approved superannuation fund		per Circular No. 18/2017 issued by
	∙	Approved gratuity fund		Central Board of Direct Taxes (CBDT)
	∙ Other funds / authorities / Board /
		bodies covered as per the
		circular issued by the Central
		Board of Direct Taxes (the
		CBDT)
6	National	Pension	System Trust	NIL	Documentary evidence for coverage
	referred to in Section 10(44) of the		u/s. 197A(1E)
	Income Tax Act,1961

1. NON-RESIDENTSHAREHOLDERS:

Withholding tax on dividend payment to non-resident shareholders, if the non-resident shareholders submit and register following documents as mentioned in column no.4 of the below table with the Company/RTA of the Company:

Sr.

Particulars

Withholding

Documents required

No.

Tax Rate

(1)

(2)

(3)

(4)

1

Foreign

Institutional

20.00%

To avail beneficial rate of tax as per

Investors

(FIIs)

/

Foreign

(plus applicable

applicable tax treaty, following documents

Portfolio

Investors

(FPIs) /

surcharge and

would be required:

Other

Non-resident

cess) OR Tax

shareholders

Treaty Rate

1. Tax Residency certificate (TRC)

whichever is

issued by revenue authority of country

beneficial

of residence of shareholder for the

year in which dividend is received;

2. Self‐attested PAN allotted by the

Indian Income Tax authorities;

3. Form 10F duly filled in & signed;

4. Self-declaration for non-existence of

permanent establishment / fixed base

in India in the format provided and

specifically

addressed

to

the

Company;

5. FPI registration number / certificate, if

applicable

3

Indian Branch of a Foreign

Nil

Lower tax deduction certificate u/s 195(3)

Bank

obtained from Income Tax Authority.

Self-declaration confirming that the income

is received on its own account and not on

behalf of the Foreign Bank

4

Availability of Lower/NIL tax

Rate specified in

Lower / Nil tax deduction certificate

deduction

certificate issued

certificate

obtained from Income Tax Authority

by Income Tax Department

u/s 197 of Income Tax Act,

1961

5

Any

non

-

resident

Nil

Necessary

documentary

evidence

shareholder exempted from

substantiating

exemption

from

WHT

WHT deduction as per the

deduction

provisions

of

Income Tax

Act or any other law such as

The

United

Nations

Privileges

and

Immunities)

Act 1947, etc.

• To view / download Form 15G, Form 15H, Form 10F and Self-declaration Form, kindly click on the General tabon https://linkintime.co.in/client-downloads.html
• To view / download declaration for foreign shareholdersclick here
• To view / download Declaration regarding Category and Beneficial Ownership of Sharesclick here
• To view / download Declaration under Section 37BAclick here
• To view / download Details of beneficial owners of dividend incomeclick here

The aforesaid documents such as Form 15G / Form 15H / Form 10F / Self-declaration Form, documents under Section 196, 197A of the Income Tax Act, 1961, FPI Registration Certificate, Tax Residency

Certificate, Lower Tax certificate etc. can be uploaded on the link https://linkintime.co.in/formsreg/submission-of-form-15g-15h.htmlon or before Monday, July 25, 2022 to enable the Company to determine the appropriate TDS / withholding tax rate applicable. Any communication on the tax determination/deduction received post Monday, July 25, 2022 shall not be considered by the Company / RTA.

LOWER TAX RATE CERTIFICATE:

Where a taxpayer (shareholder) believes that his / her / its total income justifies withholding of tax at a lower rate, he / she / it can apply to the assessing officer for a certificate of withholding tax at a lower rate and the tax officer on being satisfied that lower deduction of TDS is justified shall issue a certificate for the same under Section 197 of the Income Tax, 1961.

You are requested to mention below credentials of Ratnamani Metals & Tubes Limited while applying lower tax rate certificate:

Permanent Account Number (PAN)	:	AABCR1742E
Tax Account Number (TAN)	:	AHMR01411E

INTRODUCTION OF SECTION 206AB OF THE ACT APPLICABLE TO ALL SHAREHOLDERS (RESIDENT AND NON-RESIDENT) WHO HAVE NOT FILED THEIR RETURN OF INCOME FOR THE PREVIOUS TWO FINANCIAL YEARS:

The Finance Act, 2021, has inter alia inserted the provisions of Section 206AB of the Income Tax Act ("Act") with effect from July 1, 2021 providing a higher rate to deduct TDS for non-filers of Return of Income. This section would apply to dividend payable by the Company to a "specified person", as defined.

The TDS rate in this section is higher of the following rates:

• twice the rate specified in the relevant provision of the Act; or
• twice the rate or rates in force; or
• the rate of 5.00%

As per Central Board of Direct Taxes vide Circular No. 11 of 2021 dated 21st June 2021, for determining TDS rate on Dividend, the Company will be using functionality of the Income-tax department to determine the applicability of Section 206AB of the Act. Accordingly, if at the time of deducting tax, the status of shareholder as shown by the system of the Income-tax Department, is reflected as "specified person", tax will be deducted at twice the applicable rate or 5.00%; whichever is higher.

TRANSFERRING CREDIT TO THE BENEFICIAL OWNER:

Primary Shareholder can submit declaration as per Rule 37BA of the Income Tax Rules, 1962 to provide credit of TDS on dividend pay-outs by the Company, separately to the joint Members (beneficiary Members) of the said shares on or before Monday, July 25, 2022. The said declaration received post July 25, 2022 shall not be considered. The Company shall not be responsible for providing the TDS credit to the beneficiary Member, in any manner, in the absence of prior intimation by the primary Member to the Company.

Shareholders holding shares under multiple accounts under different status / category and single PAN, may note that, higher of the tax as applicable to the status in which shares held under a PAN will be considered on their entire holding in different accounts.

Application of TDS rate is subject to necessary verification by the Company against the details of the shareholders as available in Register of Members as on Tuesday, August 2, 2022 and other documents available with the Company / RTA.

It may be further noted that in case the tax on 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. No claim shall lie against the Company for such taxes deducted.

In the event of any income tax demand (including interest, penalty, etc.) arising from any misrepresentation, inaccuracy or omission of information provided by the Shareholder/s, such Shareholder/s will be responsible to indemnify the Company and also, provide the Company with all information / documents and co-operation in any appellate proceedings.