Corporate Dividend Tax

The company has to pay CDT.

while calculating only dividend received from subsidiary company is not liable to pay CDT.(with certain conditions)

what about the cascading affect here?

yes

CDT applicable all divedend paid including Dividend received by company.

Vishnu Priya,

You are pretty correct about double taxation and the same has been provided in the Income Tax under a section named 115-0(1A), but only as far as holding-subsidiary relation is concerned as under:

[(1A) The amount referred to in sub-section (1) shall be reduced by,—

                (i)   the amount of dividend, if any, received by the domestic company during the financial year, if—

         (a)   such dividend is received from its subsidiary;

        (b)   the subsidiary has paid tax under this section on such dividend; and

         (c)   the domestic company is not a subsidiary of any other company :

                       Provided that the same amount of dividend shall not be taken into account for reduction more than once;

Thank you nicky

thanks