01 October 2012
What is the current withholding tax rate of payment of ECB. If there is any change in the rate please mention the rate and whether it should be effective on the existing payment of ECB ?
01 October 2012
Finance Minister P Chidambaram said the reduced tax rate will be applicable to the funds borrowed between July 2012 and June 2015. Liability of the Indian company to withhold tax on such income would also be at the reduced rate of 5 percent.
“This lower rate of taxation will apply to interest paid to a non-resident by an Indian company for money borrowed in foreign currency from a source outside India, either under a loan agreement or by way of long-term infrastructure bonds,” the finance minister said.notification comes on 21/09/2012
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