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Taxation of company

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(Querist)
25 November 2013
A Company have granted loan of Rs.1 crores to its subsidiary Company at an interest of 10% p.a. Will the Interest be taxable?
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Nikhil Kaushik online

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Nikhil Kaushik online (Expert)
25 November 2013 yes. it shall be taxable in the hands of the parent company and shall be available as deduction in the subsidiaries tax return. Please check domestic transfer pricing regulation for arm's length pricing.
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CA LOKESH KASAT, FCA, M.Com

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CA LOKESH KASAT, FCA, M.Com (Expert)
25 November 2013 Yes, should be at arm's length price
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CS,CA F,Numrologi TusharSampat

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CS,CA F,Numrologi TusharSampat (Expert)
26 November 2013 Yes agreed with above ans.

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