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


aishwarya chauhan   26 May 2019

aishwarya chauhan

 1 points

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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).

avater

Lakshay Gupta (nil)     26 May 2019

Lakshay Gupta
nil 
 22 points

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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.


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