An individual is proposing to purchase shares of an indian Unlisted company. the shares are held currently by a foreign company. if he has to purchase these shares, RBI has stipulated conditions for the valuation of the shares. Kindly inform me about the procedure/formula.
What other requirements are to be complied with on remittance abroad?
Thank you,
Venkatesan.K
Purchase of Indian Unlisted Company Shares Requires DCF Valuation, TDS Under Section 195, and Form FC-TRS Submission An individual is interested in purchasing shares of an Indian unlisted company currently held by a foreign company. The Reserve Bank of India requires that the valuation of these shares be conducted using the Discounted Cash Flow (DCF) method. Additionally, if the foreign company incurs any capital gains, the appropriate Tax Deducted at Source (TDS) under Section 195 must be deducted. Furthermore, Form FC-TRS needs to be filed within 60 days of the transaction with the Authorized Dealer (AD). (AI Summary)
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