Tax on interest on loan from foreign financial institution

This query is : Open

visu iyer (Querist)
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13 November 2013 Folks,

Please do let me know, whether interest on loan paid to foreign bank(not located in India) or the associate enterprises (whose place of business is not in India) is taxable in service tax under Rule 2(1)(d) under reverse charge mechanism as per Rule 3 of place of provision rules.

if so, please cite the relevant notification or circular for update

thanks and regards.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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13 November 2013 see if this helps:

http://www.taxindiaonline.com/RC2/inside2.php3?filename=bnews_detail.php3&newsid=16751

visu iyer

visu iyer (Querist)
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14 November 2013
Thank u Nikhil ji..
but it was about bank charges..
My Query is about interest..!!

If Interest is also taxable; will the abatement @ 90% be allowed or not..!!

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