Limitation on interest deduction in certain cases.

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....all 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 crore rupees. (2) ....

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....lass 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 paid or payable to associated enterprises for that t....