kalpesh (assistant) (193 Points)
16 November 2010We have a non resident client who holds shares in an indian non listed Company. The Company wants to transfer its holding to a domestic Indian Country.
My Queries are as follows:
will the Indian Company need to deduct TDS u/s 195 In case of Long Term Capital Loss on the above shares whether at the time of making the payment?
If the answer is no then is any order of the Assessing officer required for the same.?
prashant goyal
(CA-Final)
(100 Points)
Replied 06 December 2010
hey kalpesh
ur problem is interesting... although i hav no practical experience in dealing with NON RESIDENT clients... but according to my theoritical knowledge sec. 195 becomes operative only when payment is made to a non resident which is taxable in india and deduction should be made on whole amount not only on income portion...
now in this case NR incurred loss therefore nothing is taxable in india so no TDS is required to be deducted
ii is my personal opinion plzzz correct me if i m wrong
CAclubindia
