AAR held that the transaction between non-resident entities was an international transaction, within the meaning of Explanation (ie) below section\u00a092B\u00a0, as admittedly the share transfer transaction was a sequel to business reorganization. The transaction related to shares in the Indian company or asset situated in India and in terms of section\u00a09(1)(i)\u00a0read with Explanation 5 the transaction would give rise to income deemed to accrue or arise in India. Proposed\u00a0 transaction would liable to capital gains tax in the hands of transferor and liable to deduct tax under section 195 of the Act and the \u00a0applicant could seek set-off of Swiss taxes, if any, under article 23(1)(b) of the Double Taxation Avoidance Agreement between India and Switzerland.<\/p>\n
\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" S. 245R : Advance rulings Non-Resident \u2014Capital gains – Proposed transfer without consideration – Liability To Tax On Capital Gains Arises In Hands Of Transferor \u2014 Tax Leviable In India On Capital Gains From Alienation Of Indian Shares \u2014 Tax Required To Be Deducted At Source- DTAA-India \u2013 Switzerland [ S.9(1)(i), 45, 47 (ii), 92B,195, Art, 23(1)(b)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-17505","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-4yl","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/17505","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=17505"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/17505\/revisions"}],"predecessor-version":[{"id":17506,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/17505\/revisions\/17506"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=17505"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=17505"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=17505"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}