Divident distribution tax on pvt. co.

ABC Pvt Ltd. decalares dividend (XYZ pvt ltd. is a shareholder) and pays dividend Distr. tax XYZ receives dividend and also declares dividend and pays dividend to PQR pvt ltd. but does not pay Dividend dist tax PQR pvt ltd. received dividend and also declares dividend but does not pays DDT XYZ and PQR says as dividend tax is already paid by ABC therefore, they are not liable to pay DDT again on the dividend declared by them. IS IT correct
Replies (1)

The view of XYZ pvt. ltd. is not correct as XYZ is a subsidiary co. of  PQR.

If PQR is also a subsidiary co. of any other co. then it has to pay DDT otherwise it can taken credit of this.

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