TDS ON PAYMENT TO NON RESIDENTS

An Indian Company has purchased equity shares of an Indian Non Listed Company from a non resident shareholder. The non resident purchased the shares at a cost of Rs. 75 per share in April, 2006. Now it is selling the shares to the Indian Company at Rs. 13.9 per share.

 

The Indian Company (Purchaser) has to remit the consideration to Non Resident in foreign currency. For the above remittance, a certificate from a chartered accountant in Form No. 15CB is required.

 

Queries:-

1.         Whether TDS needs to be deducted on the payment made to foreign Company although there is a long term capital loss on the  shares?

 

2.         Whether order of Assessing Officer u/s 195 is required to be obtained for the above remittance in case TDS is not deductible?

Replies (1)

I don't think so there is any need to deduct TDS on such transaction. 

But wait, let others express their views/suggestions/reply on your query.

 

Regards,

Devendra Kulkarni

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