Regarding Capital Gains Tax on tranfer of shares by foreign co.

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aishwarya chauhan

1 Points Joined February 2018

What will be the Taxability in hands of each of the companies where an indian co.(Say A) purchase shares of another indian company(called B) from a USA based company(called C).

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Capital Gains in the hand of Company C will be chargeable at the rate as the case may be depending upon whether STCG is earned or LTCG. [Refer explanation 5 to section 9(1)]
Company A will be liable to deduct tax u/s 195 on remittance to Company C at the rate of 20%. [Refer explanation 2 to section 195(1)]
There will be no tax liability on Company B.