Sunil (Internal Auditor) (334 Points)
28 February 2014An Indian company took loan from bank as a reimbursement of investment in a foreign company. The interest is paid by the Indian establishment to the bank. Is this interest can be taken as expenditure by the Indian company as its expense for taxation purpose
SHASHANK AGARWAL
(self employed)
(114 Points)
Replied 03 March 2014
Since the loan is taken for investing in foreign company, therefore interest on the same cannot be taken as expenditure of business.
however if the Main business of the Indian Co. is that of INVESTING , then the interest can be claimed as deduction for computing PGBP.
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