Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARDS :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ACCOUNTING STANDARD :: form 3cd :: articles on VAT and GST in India :: TDS :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: VAT Audit :: due date for vat payment
 
 
« Latest Circulars »
 Monitoring of Foreign Investment under PIS in Indian Companies- Removal from Ban List - FIIs/RPIs : M/s IDFC Limited
 FIIs/FPIs can now invest 24 to 49 per cent under PIS in M/s Satin Creditcare Network Limited
  Bankers & SME Borrowers: The Emerging Mantras (Shri S. S. Mundra, Deputy Governor – June 16, 2017 – at the 3rd Bankers Borrowers Business Summit organized by ASSOCHAM in New Delhi1)
 RBI extends Directions issued to Navodaya Urban Co-operative Bank Ltd, Nagpur, Maharashtra
 Developments in India’s Balance of Payments during the Fourth Quarter (January-March) of 2016-17
 Bankers & SME Borrowers: The Emerging Mantras (Shri S. S. Mundra, Deputy Governor – June 16, 2017 – at the 3rd Bankers Borrowers Business Summit organized by ASSOCHAM in New Delhi1)
 RBI-Formation of a new district in the State of West Bengal - Assignment of Lead Bank Responsibility
 RBI-Period for Submission of Agency Commission Claims
  Master Direction - Information Technology Framework for the NBFC Sector
  Prudential Guidelines on Capital Adequacy and Market Discipline- New Capital Adequacy Framework (NCAF) - Eligible Credit Rating Agencies – INFOMERICS Valuation and Rating Pvt Ltd. (INFOMERICS)
 Prudential Guidelines on Capital Adequacy and Market Discipline- New Capital Adequacy Framework (NCAF) - Eligible Credit Rating Agencies – INFOMERICS Valuation and Rating Pvt Ltd. (INFOMERICS)

Approval of loan agreements/ long term infrastructure bonds and rate of interest for the purpose of Section 194LC of the Income-tax Act, 1961
September, 25th 2012
                                   PRESS RELEASE

                              MINISTRY OF FINANCE

                                                                 21st September, 2012

Subject: Approval of loan agreements/ long term infrastructure bonds
         and rate of interest for the purpose of Section 194LC of the
         Income-tax Act, 1961- regarding.

In order to enable low cost foreign borrowings by Indian companies, the Finance
Act, 2012 had amended the Income-tax Act to lower the tax on such borrowings.
The amendment to section 115A and insertion of section 194LC in the Income-tax
Act provide that the interest income of a non-resident investor will be taxed at the
reduced rate of 5 per cent instead of the existing rate of 20 per cent. Further, the
liability of the Indian company to withhold tax on such income would also be at the
reduced rate of 5 per cent. This lower rate of taxation will apply to interest paid to a
non-resident by an Indian company for money borrowed in foreign currency from a
source outside India either under a loan agreement or by way of long-term
infrastructure bonds. This is also subject to the condition that the borrowing is made
during the period from 01.07.2012 to 30.06.2015 and such borrowing and the rate of
interest are approved by the Central Government.





With a view to lower the compliance burden and reduce the time lag which would
arise on account of case-by-case approval, the Central Government has decided
to grant approval to all borrowings by way of loan agreement and long-term
infrastructure bonds that satisfy certain conditions. No specific approval in such
cases would be required. Broadly, borrowings under a loan agreement or by way of
issue of long-term infrastructure bonds that comply with External Commercial
Borrowings (ECB) regulations as administered by the Reserve Bank of India (RBI)
would be eligible for availing of the benefit of this concessional tax regime. Further,
in case of long-term infrastructure bonds the end use of the proceeds of such bond
issue should be for the infrastructure sector as defined by RBI under its ECB
regulations. The details of the conditions to be satisfied are elaborated in the circular
on approval of loan agreements/ long-term infrastructure bonds under section
194LC of Income ­tax Act, dated 21/09/12 issued by the Central Board of Direct
Taxes (CBDT).



 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Reengineering Software Re-engineering Software Reverse Engineering Software Reverse Development Software Change Modulation Software Conversion Software Re-creation Software Re-development

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