Foreign company transferring Indian shares to another foreign company

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Hafiz (Querist)
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16 March 2025 Foreign holding company transferring its holding in shares of Indian company to an another foreign company.

Whether provisions of TDS applicable in this case? Both the foreign companies is not having PAN.

Any case laws is there in connection with the same?

Dhirajlal Rambhia online

Dhirajlal Rambhia online

(Expert)
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13 April 2025 TDS provisions are generally not applicable when a foreign holding company transfers its shares in an Indian company to another foreign company, as this transaction does not involve a payment from an Indian entity to a non-resident. However, if the transaction triggers indirect transfer provisions due to the substantial value derived from Indian assets, it could be subject to Indian capital gains tax. There are no specific case laws mentioned in the search results addressing this exact scenario.