Deductibility of Withholding tax, Income Tax

[anil kalia]

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).

Posts / Replies

[Surender Gupta]

Please go through the following ruling: 2007 -TMI - 2381 - AUTHORITY FOR ADVANCE RULINGS (In Income Tax Section - Case Laws on this site)