I am constructing a house and wanted to borrow around 15 lakhs from a friend abroad through is company account. My friend is a foreign national and is willing to send the money from his company account to my personal savings account. I shall be returning back the amount as soon as I get home loan approved or with in a maximum period of 2 years with any interest as per any statutory requirement. I have the following queries,
1. Is this arrangement permissible under the forex?
2. If NO, what are the other options? If YES, do I need to pay any interest when returning the amount?
3. Is there any tax implication on this amount borrowed?
4. Any pre-requisites that needs to put into practice, like an agreement or so?
It will be really helpful if any of you experts reply to these queries.
Thanking you in Advance
Madhusudan
CAclubindia
