Dear Madam/Sir,
A company has issued 0% FCCB to overseas subscribers. It is redeemable after 5 years from the date of issue at a premium agreed upon at the time of issue or convertible into shares at the option of the bondholder.
The holder wishes to redeem it due to adverse market conditions.
Is tax to be withheld on the redemption premium payable?
Thank you.
CAclubindia
