Hello all,
I have currently got a query for all of you.
Let's say a Singapore company has a subsidiary in India. And that a (or many) shareholders have provided to a loan to the subsidiary company.
Of course, this loan has it's own interest and will be repaid (no issues on defaulting etc.). What is India's legal stance on the intertest gained from this loan? And what happens when this interest gain is repatriated to Singapore?
I understand the DTA agreement between the two nations may have an effect, but what is it?
So this question basically asks for information on the taxation by the Indian Govt on interest paid to a foreign lender.
Thanking you.
CAclubindia
