TDS on buy back of shares

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.