Tds on purchase of shares in an indian co owned by non resid
This query is : Resolved
03 November 2016
An Individual has entered into a SSPA with a Foreign Co, which owns majority shares in a Pvt Ltd Indian Co. Shares have been transfered to the Resident Individual by the Non-Resident Co against SSPA and the payment shall be made in next 8 years.
Please advise the applicability of TDS on the resident individual and when the TDS is payable?
Please advise the applicability of TDS on the resident individual and when the TDS is payable?
Amol S Joglekar
(Expert)
03 November 2016
Keeping in view the turmoil of Vodafone case, it is better that you apply to the concerned Assessing Officer u/s 195(2)
195 (2) Where the person responsible for paying any such sum chargeable under this Act (other than salary) to a non-resident considers that the whole of such sum would not be income chargeable in the case of the recipient, he may make an application to the Assessing Officer to determine, by general or special order, the appropriate proportion of such sum so chargeable, and upon such determination, tax shall be deducted under sub-section (1) only on that proportion of the sum which is so chargeable.
https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx
195 (2) Where the person responsible for paying any such sum chargeable under this Act (other than salary) to a non-resident considers that the whole of such sum would not be income chargeable in the case of the recipient, he may make an application to the Assessing Officer to determine, by general or special order, the appropriate proportion of such sum so chargeable, and upon such determination, tax shall be deducted under sub-section (1) only on that proportion of the sum which is so chargeable.
https://www.incometaxindia.gov.in/Pages/acts/income-tax-act.aspx
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