Ecb query

ECB ie External Commercial Borrowing.

Principal Amount borrowed in Neither an Income nor an Expense.

Amount when borrowed is a Liability in the hands of the borowwer , Hence Loan  w/off should be a Capital receipt.

Tax Treatment: 70% Not Taxable being a Capital receipt 

30% of Principal Amount paid by the company : Not an Expense.

Kinldy Rectify If i have said anything wrong. The above Answer is my Opinion on the Question placed in the forum. Expert opinion should be taken and tallied with.