Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: VAT Audit :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: cpt :: Central Excise rule to resale the machines to a new company :: TDS :: list of goods taxed at 4% :: empanelment
News Headlines »
 7 Tax-saving investments for the risk averse
 5 Tax tasks you should complete before March 31
 March 31 deadline nears: Check out these last-minute tax-saving investment options
 How to file income tax returns online without having Form 16 in 10 simple steps
 Deadline For Filing Income Tax Return (ITR) Is Just 11 Days Away: 10 Latest Details To Know
  10 incomes you need not pay any tax on
 How To File Income Tax Returns In Three Steps By March 31, 2018
 10 things about income tax every taxpayer should know
 What to do if your TDS is not deposited with the government
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31

Corporates find new route to save ECB tax
November, 28th 2006
Corporate acquisitions in India are setting a new trend in raising funds through the external commercial borrowing (ECB) route and at the same time saving on the withholding tax. 
Air-India, which is in the process of raising funds overseas to purchase Boeing aircraft, is planning to opt for lease financing rather than a direct purchase. 
Towards this, the public sector airliner and its consortium of lenders are setting up a special purpose vehicle (SPV) in a foreign country which would lease the aircraft to A-I. The SPV would help A-I avoid paying withholding tax on overseas funds arranged. 
This is because the SPV will be launched by the lenders in such a country from where leasing aricraft to Indian companies are exempt from withholding tax under the current laws of international taxation. 
Usually, withholding tax is imposed by the government on the borrowings raised by domestic corporates from foreign banks. 
Sources say another reason for working out the SPV structure could be the fact that India was not one of the signatories to the cape town convention on aviation protocol. 
While the country for setting the SPV is yet to be decided, the shares of the SPV will be held either by the overseas lenders or jointly by A-I and the lenders. 
Therefore, going forward, if there is any problem in repayment, these lenders should not face any legal hassles in getting the issues sorted, said the sources . The discussions are understood to be held at Chicago led by US EXIM. 
Similarly, in the case of Tata steel that is in a battle to acquire UK-based Corus Steel at a total cost of around $8.5 billion, is in the process of setting up three holding companies overseas for the purpose of finance. 
One such company will be based in the Netherlands and locations of the other two will be in countries where corporates are exempt from paying withholding taxes on their overseas borrowing, said a banking source. 
The plans are yet to the finalised. The company at present is arranging a bridge loan of around $1.4 billion which would be repaid from the total external commercial borrowing of around $6 billion. Rest will be managed through the company's own equity, said the source.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions