TDS u/s 195 on purchase of shares

CA. Rashi Goyal (Chartered Accountant) (512 Points)

25 July 2010  

Dear Friends,

An Indian company "A" is purchasing the shares of an Indian company "B" from a non resident at the agreed rate of Rs. 2.00 per share (Face value = Rs. 10.00 per shares). Now would the company "A" liable to deduct the TDS u/s 195 out of the money to be paid for purchasing the shares.

Pleae advise.