Section 393(2); Table [For Payments to Non-Resident] - Interest on Foreign Currency Borrowings

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ture of payment Recipient Deductor Rate of TDS 2 Interest payable in respect of moneys borrowed in foreign currency from a source outside India under specified loan agreements or approved long-term bonds Non-resident (other than a company) or a foreign company Indian company or Business Trust 5% Scope of the provision This clause applies to int....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... The provision therefore applies only to interest payable to non-resident lenders. Rate of deduction The provision prescribes a concessional rate of 5%. Threshold limit No threshold limit has been prescribed. Accordingly, every payment of eligible interest covered by this clause attracts deduction of tax at source. Specified borrowings The concessional rate is restricted to in....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n specified foreign currency borrowings from sources outside India. • Applicable only where the payer is an Indian company or Business Trust. • The recipient must be a non-resident or foreign company. • A concessional TDS rate of 5% is prescribed. • No monetary threshold has been provided. • The benefit is confined to borro....