amit (sddsfd) (116 Points)
23 February 2013
In case Foreign Company Resident of Mauritious, sale its shares of Indian Private Company to Indian Resident Individual, then is Resident Indian should deduct any TDS while making payment to Foreign Company having regard to DTAA or Sec 195.
Can any one suggest anything on this ??????
CA Prashant Gupta
(DGM (F & A))
(14068 Points)
Replied 23 February 2013
I don't think so
as it is not expense or payment for services
So no TDS is applicable.
Dhawal Mohnot
(Practicing)
(449 Points)
Replied 23 February 2013
In my view.
Since the underlying asset is in India the tax has to be deducted at source. However this issue is debatable as a leading Multinational telecom company is involved in a similar issue. Last finance budget had a restrospective amendment to taxing transactions invloving asset situated in India, but since it has brought about a wild spread agitation it may be made prospective. So follow the finance budget and other updates carefully.
You can wait for other views as well.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 14 March 2013
Here FEMA aspects also need to be seen .
Also if proper precautions are taken then such income shall not be taxable in India.
Anuj
femaquery @ gmail.com
CAclubindia
