Question

Ppstacqiusition dividend receivef by holding companies is debited to

Answer 1

Answer:

Explanation:

Add together your revenues and your subsidiary's revenues. Subtract the sales made between you and your subsidiary to determine consolidated revenue. In the example from the previous step, add $40,000 and $20,000 to get $60,000. Subtract $8,000 from $60,000 to get $52,000 in consolidated revenue.

Answer 2

Holding cos need not pay DDT on dividend from subsidiaries. Holding companies, especially in sectors like infrastructure and financial services, stand to gain from the amendment to DDT rules, which exempts dividends received from subsidiaries from the tax.