14 May 2009
A foreign Investor had filed a suit before the CLB against the Company and its Directors for mismanagement. Later, the parties to the suit compromised and the Company and its Directors agreed to pay a certain sum to the Investor for which the Investor also agreed. Now foreign currency is to be remitted. Is TDS applicable on this payment? Is it a capital receipt not liable for TDS? If TDS is attracted, under which section and at what rate? Please advice.
CAclubindia
