Hi
Can somebody guide me as to tax and FEMA implication where Parent company(Finland based) of indian subsidary wants to buy back / reduce its share capital in indian subsidary and take back the capital. Please advise as to my below mentioned queries.
1. Will Remittance of Share capital be chargable to tax in the hands of parent company and is it essential to deduct TDS on the same.?
2. At what rate valuation of share capital be done and undre which section?
Can some one substentiate this with some similar case study on this?
B/Rgds Santoshi
CAclubindia
