company is defined under sub-section 22A of section 2 of the Income Tax Act,
company is an Indian company which has made prescribed arrangements for
declaration and payment, within India, of the dividends payable out of its
income which is liable to tax under the said act.
company is defined under sub-section 26 of section 2 of the Income Tax Act,
dividends as mentioned above also include dividends on preference shares.
Companies Act, 2013 does not define the term domestic company.
Prescribed arrangements, as mentioned above, as per Rules 27 of the Income Tax
Rules, 1962 means and includes the following:
The share-register for all
shareholders shall be maintained at the company's principal place of
business within India.
The dividends declared shall
be payable within India to all shareholders.
The general meeting (for
passing the accounts and for declaring any dividends) shall be held at a
place within India.
N.B.: All Indian companies are domestic companies while all domestic
companies may not be considered Indian companies.