TDS on slump sale
This query is : Resolved
mikdad merchant
(Querist)
22 December 2010
Dear experts,
sale consideration received in shares for slump sale are considered as Sale consideration for capital gains rite??
Now consider a case where A Ltd (indian co.) purchases an undertaking in india owned by a foreign co. US inc. , the consideration for the same was paid in eq. shares of A ltd.
Now as the capital gains arising from the slump sale in indian fo us inc is taxable in india, A ltd has to deduct TDS u/s 195, but how will A Ltd deduct such TDS???
Please give your comments
sale consideration received in shares for slump sale are considered as Sale consideration for capital gains rite??
Now consider a case where A Ltd (indian co.) purchases an undertaking in india owned by a foreign co. US inc. , the consideration for the same was paid in eq. shares of A ltd.
Now as the capital gains arising from the slump sale in indian fo us inc is taxable in india, A ltd has to deduct TDS u/s 195, but how will A Ltd deduct such TDS???
Please give your comments
22 December 2010
TDS is to be deducted on capital gain portion as per applicable rate of TDS.
CA. R. B. SAH
(Expert)
22 December 2010
from total sale cosideration, tds liability on capital gain portion, should be deducted and balance consideration to be used for allotment of shares in A ltd.
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