Dear Members,
Pls advise me on the below mentioned subject with some documentry reference if available.
The case is as follows:
There is an ABC Co. which a domestic company.
This company has invested in Wholly owned subsidary at say Mauritius in the name called ABCD Ltd.
This company agin invested in XYZ Ltd incorported in say Hong Kong.
Thus XYZ is an subsidary of ABCD Ltd.
Also XYZ is an fellow subsidary of ABC Ltd.
Now, Hong Kong comany XYZ declars dividend to its shareholders and pay Dividend distribution tax.
This dividend is received by the shareholders of ABCD Ltd.
Which is in turn received by shareholders of ABC Ltd.
The question is wheather at each level of receiving dividend each company has to pay dividend distribution tax?
Pls advise me with some kind of reference.
Thanking you
Regards,
Kavita
CAclubindia
