Tax implications of fdi in indian company

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P.C. Joshi (Querist)

02 March 2012 Dear Friends,

A foreign party wants to invest in an Indian company A pvt. ltd. as FDI to the extent of 26% equity of indian company. The total funds put in is about Rs 15 crores. based on the brand valuation of Indian co., the foreign party will be issued fresh shares at premium of Rs 30/- on par value of Rs 10/- per share.
The indian company has accumulated losses of about Rs 15 crores as on date.

My queries are:

1.What is the tax liability and at waht stage on the foreign investor.

2. What is the tax implications of FDI on Indian company including the amount that credited to share premium account.

3. Is there any txa liability on account of minimum alternate tax(MAT) or Capital gain tax.

thanks

p.c. joshi

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)

03 March 2012 1. TAX LAIB WILL ARISE IF SHARES ARE TR AT A LATER STAGE
2. NO
3. YES MAT WILL BE PAYABLE IF THERE IS BOOK PROFIT AS PER S `115JB
CA MANOJ GUPTA
JODHPUR
09828510543

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