Tds on purchase of shares

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Querist : Anonymous

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Querist : Anonymous (Querist)
08 December 2014 A BVI company is holding shares of an Indian Pvt. Company. Now it is selling these shares to another resident company of India.

(1) Should the Indian Company deduct any tax before making payment ?

OR

(2) There would be no tax on the transaction?

Please guide.

Thanks in advance.




08 December 2014 Indian company should deduct tax u/s 195 before making payment.

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Querist : Anonymous

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11 December 2014 Sir, thanks a lot for your advise. Could you kindly guide that what would be the rate of tax to be deducted?

12 December 2014 20% plus 3% education cess on the long term capital gain.

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Querist : Anonymous

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17 December 2014 Thanks a lot Sir for your advise.


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