07-09-2011, 10:13 PM
I think profit on debt in this case will simply be added to the income of recepient and taxed at the prescribed rates just as it would have been added and taxed if the loan was advanced to resident person.
I could not find any specific provision on receipt of profit on debt from foreign company, except that of foreign source income (s.101) In the said case no foreign income tax is to be deducted hence that section will not benefit us.
I could not find any specific provision on receipt of profit on debt from foreign company, except that of foreign source income (s.101) In the said case no foreign income tax is to be deducted hence that section will not benefit us.
