Holding period for long term capital gain for stock in singa

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Pal78in (Querist)
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24 April 2014 I have some shares in a privately held LLC (not listed on any exchange) in Singapore.

How long should I hold the shares after which they will be eligible for long term capital gain (as against short term)

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 April 2014 what is your tax residence status Pal? as such Singapore has abolished capital gains tax. however, if you are Indian resident, then you need to hold for more than 36 months to be eligible for long term capital gains.

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Pal78in

Pal78in (Querist)
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24 April 2014 I am an Indian resident.

The bigger story is this:

I had incorporated a company in India in 2009.
It raised VC capital in 2012 and in Jun 2013 a new company was incorporated in Singapore in which I have been given proportional shares.

I am now selling these shares in Singapore entity in July 2014. And want to understand if there is anyway to avoid the short term tax liability.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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24 April 2014 prima facie, your tax liability on this transaction is basically cast in stone.

the DTAA is pretty clear on this. Any detailed advice is possible only after looking at the transaction structure with actual documentation.

Pal78in

Pal78in (Querist)
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24 April 2014 The following article suggests that even for equity shares in unlisted company the holding period is 1 Year to qualify as Long Term Capital Gain.

http://marker.to/2OjL3A

Are the rules different for equity holding in India vs Foreign Companies ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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25 April 2014 the article is incorrect...please refer section 2(42A) of the Act.

Pal78in

Pal78in (Querist)
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25 April 2014 If I were to stay in Singapore for 7 months in this financial year. Can this tax be avoided ?

Does the stay outside India have to be for work or can it be for leisure also ?