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interest on loan between companies

A/c entries 1109 views 1 replies

Rajagopalan

EXECUTIVE FINANCE

56 Points Joined September 2007

02.01.2008

Inter corporate Loan paid from One company to another through agreement. For payment of interest monthly/quarterly whether debit note to be raised for the same. Also pl clarify whether service tax is applicable for the interest payments.The above companies are group companies.Pl clarify

S.Rajagopalan

HSI AUTOMOTIVES

Replies (1)

Late CA Sampat Jain

Chartered Accountant

4772 Points Joined March 2007

Interest is payable as per agareement between the parties ........may be monthly/q/annual . There is no law for a particular periodicity , it is governed by the agreement. Debit notes are to be raised as per the agreement. no sevice tax on interest payemtn