dividend tax

 suppose co. c declares rs 100 as dividended...and co,b gets 60 rs and co. a gets 25

now if co. b declareds dividend of rs 150 and co.a receives rs 120. co. b will have to pay cdt/ddt on total rs 150

and in same fy co. a pays rs 200 as dividend ...then he will ay cdt on rs 200-rs 120=rs 80 @ 16.995%

this is becoz the  amendment in fa 2008 only  provides benefit to ultimate holding co who receives ddt from subsidiary co. on which ddt is paid....who holds more than 50% share (directllllllllllllllllllllllllly) in the subsidiary co.

Thanks Kabir, could anyone also tell me what was the situation before this amendment

 before such ammendment there was no relief...every co. had 2 cdt pay on total dividend distribution(except sez -when it distributes dividend out of current profit)