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Gaurav Gupta (Analyst)     27 April 2011

Tax on Foreign Currency Bonds invested by foreign investor

Hello All,

My foreign client (not registered with SEBI) want to invest in foreign currency bonds listed at Foreign Stock exchange issued by an Indian Company. I wanted to know whether any income tax law (Capital gain tax or TDS on payment of interest on bonds) is applicable or not?? 

If Yes, then at what rate??

Thanks in Advance

GG



 2 Replies

U S Sharma

U S Sharma (glidor@gmail.com)     27 April 2011

no transaction takes place in india, so indian rules does not infilterate the transaction

rules and regulations of that perticular stock exchange or counrty would be applicable

Gaurav Gupta

Gaurav Gupta (Analyst)     27 April 2011

 

Originally posted by : U S Sharma

no transaction takes place in india, so indian rules does not infilterate the transaction

rules and regulations of that perticular stock exchange or counrty would be applicable

 Thanks Mr. Sharma for your reply.

Still have two questions:

1) What about interest payment by Indian company to bond holder, any TDS is applicable or not?

2) What about capital gain on redemption on maturity, if bond is issued at discount and redeem at par/premium?


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