We have taken a ECB loan from holding company to a tune of 1000K Euro, which has been duly approved by RBI. The ECB loan is repayable in installments 50K EUR every half year. As per the terms of the agreement the interest is charged on a half yearly average EUROBOR + 1.25%.
The invoices for the interest are received at the end of every half year and the same is paid along with the Principal. The due dates for the Principal payment is June and Dec every year.
Now the question is whether TDS is deductible for 31st March; the point it is only a provision and we don’t have the actual interest applicable for the period.
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