Procedure for granting exemption u/s 10(15)(iv)(c).

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....r debt incurred by it in a foreign country in respect of the purchase outside India of raw materials or components or capital plant and machinery, to the extent to which such interest does not exceed the amount of the interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan or debt and its repayment. The purpose of granting this exem....

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....T. Act, 1961. 3. The procedure mentioned above has adversely commented upon by the Public Accounts Committee. They have opined that a procedure should be evolved under which the Ministry of Finance (Department of Revenue) should invariably be involved before the sanction order granting exemption from payment of income-tax u/s.10(15)(iv)(c) of the I.T. Act, 1961, is accorded. On reference the At....

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....x exemption sought u/s.10(15)(iv)(c) of the Act, the procedure will be that the administrative ministry would process the application in consultation with the Department of Economic Affairs, and then refer only the question of such approval to the Foreign Tax Division of the Department of Revenue in the Ministry of Finance alongwith their recommendations in each case. 4. The above procedure wil....