CA. Rashi Goyal (Chartered Accountant) (512 Points)
04 December 2009hi,
If a non resident tranfers shares in indian private limited company to another nonresident than is this required to be intimated to RBI by the company.
Ashis Mahapatra
(Consultant-Tax & FEMA/FDI)
(183 Points)
Replied 05 December 2009
| Originally posted by :CA. Rashi Goyal | ||
| " | hi, If a non resident tranfers shares in indian private limited company to another nonresident than is this required to be intimated to RBI by the company. |
" |
Transfer By
NRI to NRI-- No aproval /intimation
(PROI)Person resident out of India(Not being a NRI/OCB) To PROI/ NRI---No approval / intimation
NRI/OCB To PROI--Approval Not required if the total holding by PROI does not exceed the sectorial cap as per FDI.However reporting is must to RBI as per FEMA regulation/Transfer or issue of share by a person Resident Out of India. NRI ( Indian origin) or an OCB ( Oversease corporate body of which at least 60% shareholder are such NRI/Indian origin).understand the defination & defference between NR ,NRI & OCB.
However the transaction may fall in the ambit of Tax law since the assets is situated in India.Valuation of share will be done strictly as per earstwhile CCI gudelines with joint reference to Company law for issue of share in discount/premium.
CA. Anuj Gupta
(Practices in NRI Int.Tax FEMA TP FDI/FIPB & FCRA)
(7019 Points)
Replied 26 October 2011
The valuation of shares in Indian Compnay shall be needed to done in accordance with rule 11UA of Income Tax Rules so that provisions of section 56(2)(vii) are satisfied/not invoked.
Anuj
+91-9810106211
femaquery @ gmail.com
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
CAclubindia
