TaxTMI 
TaxTMI 
TaxTMI 
FACTS OF THE CASE : 1. A , B, C and D are NRI and have invested in the shares of a PVT Ltd company in India through transfer of funds from abroad. The company has allotted them shares and filled FC-GPR Form with RBI with in 30 days of the allotment of shares. The RBI has issued letter confirming having taken on record the investment of the NRI shareholders to be on repatriation basis. 2. Now A , B and C has sold there shares to D abroad and taken payament abroad. A has made profit of Rs.10 lacs in the deal, whereas B and C has sold shares at there cost. Please confirm whether D another NRI was liable to deduct withholding tax (TDS).
Deductibility of Withholding tax
anil kalia
Withholding tax on NRI-to-NRI share transfers: buyer's TDS obligation questioned; guidance sought from advance ruling. Whether withholding tax (TDS) is deductible on an NRI-to-NRI transfer of shares where the shares were allotted on a repatriation basis: four NRIs invested via funds remitted from abroad, FC-GPR was filed and RBI recorded repatriation; three sold to a fourth NRI abroad with one vendor realising a profit. The adviser referred to an Authority for Advance Rulings decision (2007-TMI-2381) for guidance on the purchaser's TDS obligation. (AI Summary)
