A INDIAN LISTED COMPANY WANTED TO BUY BACK IT'S SHARES, NOW COMPANY WANTED TO KNOW WHETHER THEY HAVE TO DEDUCT TAX ON SOURCE ( TDS ) FROM NON RESIDENT INDIANS ( NRI ) BUY BACK PROCEEDS. PLEASE ADVICE ? IF YES THEN UNDER WHICH SECTION AND AT WHAT RATE ?
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TDS on buy back of shares
Replies (3)
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Indian company is not required to deduct TDS in the present case as section 204(iia) provides for TDS deduction by the Bank remitting the payment.
Sec 204(iia) provides as follows:
- in the case of any sum payable to a non-resident Indian,
- being any sum representing consideration for the transfer by him of any foreign exchange asset(means shares purchased in foreign currency)
- which is not a short-term capital asset,
- the authorised dealer responsible for remitting such sum to the non-resident Indian or for crediting such sum to his Non-resident (External) Account shall be person responsible for deducting TDS .
Anuj
+91-9810106211
femaquery @ gmail.com
Sir,
Sec. 204(iia) says about only long term capital asset.
So does that imply that, in case of short-term capital asset, "Company buying back shares" will be person responsible for paying.
Does short term capital gain under chapter 12-A and as per section 111A have same or different treatment for tax deduction.
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