Definition of Indian Withholding Tax Liability

Indian Withholding Tax Liability means any incremental withholding Tax liability assessed by the Indian Income Tax Authorities over the amount of Indian Income Tax withheld by the applicable Buyer under Section 195 of the (Indian) Income Tax Act, 1961 at the Closing with respect to the purchase of all of the Foreign Securities held by Simplicity Creative in the share capital of India Trimmings; provided, that, the "Indian Withholding Tax Liability" shall not include any amounts of Tax (1) resulting from the failure on the part of the Buyers to comply with the obligation to deduct Income Tax, deposit such Income Tax and file any forms or returns in relation thereto, or (2) to the extent that Buyers fail to adhere to the covenants regarding consistent Tax reporting set forth in Section 7.7(h).
Sample 1