Tds

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Abdul Latif (Querist)
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06 December 2012 I have purchased the 18750 Equity shares from two NRI each . The share is of Private Limited Company. I have to make the payment to them. One is holding NRO account in HSBC Bank in India and other is holding NRE account in ICICI Bank india. Both reside in USA. Can i make the payment in India rupee cheque to their NRE/NRO Account.? There is Loss on the sale of the equity shares and No TDS is there as there is loss. What procedure i have to follow. Shoul I require to submit Form 15CB, 15 CA if i make the payment in Indian Rupee Cheque. Should I require to file FC-TRS with RBI.Please suggest

V K Bajaj

V K Bajaj (Expert)
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07 December 2012 Mr Abdul

Assumption is that you have decided to buy the shares of an Indian Company.

Please note that in your case procedure 15CA/15CB is not applicable but FC TRS.

Share pricing is to be done on the projected Balance Sheet of the Company, if shares not being quoted on any stock exchange. It is somewhat a long and slow moving process.

On getting the completed FC TRS forms your bank will do the remaining jobs (mainly transfer of purchases price to sellers) under intimation to you.

contact@vkbajaj.co.in

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