https://www.taxtmi.com/caselaws?id=791635 Section 195 applies only where the payment is chargeable to tax in India. Payments for shares of a Mauritius company acquired from US-resident shareholders were not subject to withholding where the transaction involved foreign shares and the law prevailing at that time did not tax indirect transfers merely because underlying value derived from Indian assets. Retrospective Explanations 4 and 5 to section 9(1)(i) could not impose a withholding obligation for an earlier transaction. No application under section 195(2) was required, and no default or interest liability arose under sections 201(1) and 201(1A). en-us Wed, 15 Apr 2026 00:00:00 +0530 Thu, 14 May 2026 09:01:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791635 Section 195 applies only where the payment is chargeable to tax in India. Payments for shares of a Mauritius company acquired from US-resident shareholders were not subject to withholding where the transaction involved foreign shares and the law prevailing at that time did not tax indirect transfers merely because underlying value derived from Indian assets. Retrospective Explanations 4 and 5 to section 9(1)(i) could not impose a withholding obligation for an earlier transaction. No application under section 195(2) was required, and no default or interest liability arose under sections 201(1) and 201(1A). Case-Laws Income Tax Wed, 15 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791635