ADITI MALIK (article assistance) (78 Points)
03 September 2011
Hey guys.....Here i've come up with 1 more Query....Plz gv some opinion guys.....
KYL Ltd, Taiwan sell its shares of KYL India Pvt Ltd (Sister co of KYL Taiwan) to Sio Co. Ltd., Ireland amounting to Rs. 1,77,00,000. Sio co has instructed KYL India Pvt Ltd to pay tax on their behalf to Indian government …so what will be the tax implication ????
thanks in advance
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7014 Points)
Replied 12 September 2011
KYL Ltd., Taiwan shall be liable to pay tax on the capital gains earned on the amount of capital gain arising out of Rs. 1,77,00,000 that it reeceived @ 20% + cess + surcharge.
Anuj
+91-9810106211
femaquery @ gmail.com
sudhakar
(article )
(90 Points)
Replied 21 October 2011
Yes i agree with Mr . anuj gupta... as the capital asset is in india (i.e. shares of KYL India Pvt Ltd) the capital gain arising on transfer will be deemed to accrue in India as per sec 9 (i) and will be liable to tax.
CAclubindia
