India-Indonesia DTAA revised – Taxation regime introduced for indirect transfer of shares

Notification no. SO 1144(E) [No. 17/2016][File no. 503/4/2005-FTD-II] dated 16.3.2016

Government of India has entered into a new DTAA with Indonesia. The new DTAA has 31 Articles including two newly introduced articles on ‘Limitation of Benefits’ and ‘Assistance in Collection’. One of the crucial points provided under the new DTAA is that capital gain from transfer of shares of a company shall be taxable in the country in which said company is resident. Earlier, such capital gain was taxable in the country of residence of an assesse.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s