Capital gain tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

17 June 2014 Dear sir

we have private limited company incorporated in India which is owned by the foreign company.
Now foreign company wants to transfer shares of Indian company to another company in abroad.

here My question is

1. whether the transfer of shares of one foreign company to another company are liable to capital gain in India as transaction takes place in foreign country.
2. In Case tax to paid, who has pay tax. as both seller and buyer is in outside india

Reply is awaited

any case law in this regard

Nikhil Kaushik

Nikhil Kaushik (Expert)
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17 June 2014 it is taxable in India. after vodafone amendments, there is no grey area left on this.

2. the tax is to be paid by seller.

go through the whole of vodafone controversy to understand this. the asset lies in India,..so section 9 will deem the income to arise in India