18 July 2010
Dear Experts, In a closely held company one of the director is a foreign national and he has shares now he want to sell the shares. One of the member in the closely held company is ready to buy that shares. Now i want to know what are the procedures to be followed in this case. Please tell me....how should i proceed for all the compliances as per Income Tax Act and Companies Act. With regards, Rajesh
20 July 2010
First and foremost this would be governed by the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) regulations regarding the valuation of shares due to the currency involvement. The procedures as per the Companies Act and Income tax would apply as normally it does, except that the transferor is a foreign national
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