indirect transfer of shares

In my opinion there would be no imapct and no tax consequences on Indian concern because:

1. Indian company is transferring nothing and

2. The Shares of Indian company have been taken by US company which would have been shown as Investment in US company.

And therefore if any company purchase the Parent company of Indian company (i.e. US company) itself and that too outside India there would be No tax consequences in India or on Indian company.

Further, In the same case if US company has been the owner of Japan company as well and then US company would have been transferring the shares of Indian company then it would have been covered under Sec 50D. But that is the different case.


In the given case there would be no tax consequences in India.

Thanks.

so here Japan company is buying individual shareholders of US company which comprises of shareholding of more than 50% and Japan company will give amount directly to Individual shareholders and not US company.My question is since US shareholders are non resident to India and they received the money which is also of Indian investment made by Us company , what is the role of Indian company here?