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Foreign company lending to its wos in india

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(Querist)
24 December 2015 Can a foreign holding company give interest free loan to its WOS in India. Does RBI pose any restriction in this. Is transfer pricing applicable for this type of transactions
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Pratik Shah

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Pratik Shah (Expert)
24 December 2015 If Indian Company wants to take loan from outside India, it needs to comply ECB Rules and Regulation issued by RBI.
Please click on link
https://www.rbi.org.in/scripts/BS_ViewMasCirculardetails.aspx?id=9069
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