X company having 70% shares in Y company. Y declares dividend to its share holders after paying the dividend distribution tax. After receiveing the dividend X company declares dividend to its shareholders .
whether X is required to pay dividend distribution tax on the amount of dividend received from Y company?
What will be the answer if X company holds 10% shares in Y company?
In my opinion, both the Companies are liable to pay dividend distribution tax when they declare to pay dividend to their shareholders.
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