Limitation on interest deduction in certain cases.

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.... shall not be deductible in computation of income chargeable under the head "Profits and gains of business or profession", if,- (a) it is paid or payable by an Indian company or a permanent establishment of a foreign company in India, in respect of any debt issued by an associated enterprise which is a non-resident; and (b) the sum of such expenditure in a tax year exceeds one cr....

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....nternational Financial Services Centre, or such class of non-banking financial companies as may be notified by the Central Government in this behalf. (4) For the purposes of sub-section (1), the expression "excess interest" means the total interest paid or payable in excess of 30% of earnings before interest, taxes, depreciation and amortisation of the borrower in the tax year or the interest p....

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.... (a) "debt" means any loan, financial instrument, finance lease, financial derivative, or any arrangement that gives rise to interest, discounts or other finance charges that are deductible in the computation of income chargeable under the head "Profits and gains of business or profession"; (b) "Finance Company" means a finance company as defined in regulation 2(1)(e) of the Internat....