Notified jurisdictional area
This query is : Resolved
16 April 2012
If an Indian company takes loan from a bank in Pakistan for business purpose, whether interest paid on such loan is deductible as business expenditure.
16 April 2012
Pakistan is notoriously known for financing and promoting terrorists and terrorism. I hardly believe that Pakistani Banks finance to peaceful activities like legally conducted businesses.
.
However, if the amount is borrowed for the purpose of a legal business and the amount has been borrowed by following the regulatory guidelines in this behalf, interest on such loan will be an allowable business expenditure.
.
.
However, if the amount is borrowed for the purpose of a legal business and the amount has been borrowed by following the regulatory guidelines in this behalf, interest on such loan will be an allowable business expenditure.
.
Message likes :
1 times
17 April 2012
If an Indian Company having branch in Pakistan it can borrow funds from Pakistan Banks and if it is utilised for business purpose then it is allowable.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Is Aadhar PAN linking required for opening bank account?
- Applicability
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- Gst Sales of FY 2023-24
- Whether still royalty
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Payable outstanding for years disallowance
- TDS NUMBER SURRENDER
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
- Regarding einvoice taken on nil rated sales
- Strategical investment in Public listed company
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
