Notified jurisdictional area
This query is : Resolved
16 April 2012
If an Indian company takes loan from a bank in Pakistan for business purpose, whether interest paid on such loan is deductible as business expenditure.
CA PARAS BAFNA
(Expert)
16 April 2012
Pakistan is notoriously known for financing and promoting terrorists and terrorism. I hardly believe that Pakistani Banks finance to peaceful activities like legally conducted businesses.
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However, if the amount is borrowed for the purpose of a legal business and the amount has been borrowed by following the regulatory guidelines in this behalf, interest on such loan will be an allowable business expenditure.
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However, if the amount is borrowed for the purpose of a legal business and the amount has been borrowed by following the regulatory guidelines in this behalf, interest on such loan will be an allowable business expenditure.
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17 April 2012
If an Indian Company having branch in Pakistan it can borrow funds from Pakistan Banks and if it is utilised for business purpose then it is allowable.
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