Priya Sharma (Company Secretary & Student.MBA) (998 Points)
09 September 2009In case of transfer of shares from a person outside to person in india by way of gift,is there any consideration involved???Is the person resident in India required to pay anything??
Plz suggest its very very urgent.
Rgds
Priya
Ajay Mishra
(Company Secretary)
(74337 Points)
Replied 09 September 2009
Dear Ms. Priya
Please read Point No. 21 and 22 on Page No. 11 and 14 of the master Circular attached herewith.
Regards
Priya Sharma
(Company Secretary & Student.MBA)
(998 Points)
Replied 09 September 2009
But no where its is mentioned about the pricing of shares transferred by person resident outside India to person resident in India.
Rgds
Priya
Ajay Mishra
(Company Secretary)
(74337 Points)
Replied 09 September 2009
Read Page No 62 as annexture 4 of the Master Circular.
Priya Sharma
(Company Secretary & Student.MBA)
(998 Points)
Replied 09 September 2009
But Sir that deals with the transfer of shares from Person resident in India to Person resident outside India by way of gift. And i am asking about the transfer of shares by way of gift from person resident outside to person resident in India.
Rgds
Priya
Ajay Mishra
(Company Secretary)
(74337 Points)
Replied 09 September 2009
Read Page No 13 point no (ii) which deal filing of FC-TRS within given time frame would be on the transferor or transferee, resident in India.
It means onus of taking approval of under Government Route will be on resident in India, because in circular there is no such provision for non-resident under transfer of securities by way of Gift.
Regards
Priya Sharma
(Company Secretary & Student.MBA)
(998 Points)
Replied 10 September 2009
Thank You Sir!!
rahul
(PCS)
(38 Points)
Replied 10 September 2009
my goodness .
GO through the orignal rule it is clear over there that "NON resident can GIFT THE shares to RESIDENT "
but gift by "resident to non resident requires approval of RBI and if shares are of prohibited sector further approval of CG is requires"
the rule is simple if NR gifts shares to resident THEN THERE IS NO OUTFLOW OF FOREX HISMONEY IS BLOCKED IN INDIA . SO no aprroval /formality is required .
on the onthert hand if a resident gifts shares to NR then INDIA LOSSES THE FOREX which would have been earned had the sahres been sold .
there are also "case laws" dealing with "exachange of shares"
rahul
(PCS)
(38 Points)
Replied 10 September 2009
sorry i missed the point no approval is required in your case only F C - TRS is required to be filed and that too without "valuation report" .
but you should comly with the sec 108 .
CAclubindia
