Tax Hotline
July 03, 2002
Tribunal ruling on usance interest paid to non residents

In a recent decision the Rajkot Income Tax Appellate Tribunal, held that payments made in the nature of usance interest by an Indian shipping company to a non resident would not attract withholding taxes. The underlying principle behind it being that usance interest does not partake the same character as other interests which arise from some debt claim.

The tribunal upheld that usance interest so paid in fact forms part of the purchase price as agreed between the contracting parties in their memorandum of understanding.

 
 

Source: Economic Times, July 3, 2002

Disclaimer

The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.

NDA Connect

Connect with us at events, 
conferences and seminars.

Tax Hotline

July 03, 2002

Tribunal ruling on usance interest paid to non residents

In a recent decision the Rajkot Income Tax Appellate Tribunal, held that payments made in the nature of usance interest by an Indian shipping company to a non resident would not attract withholding taxes. The underlying principle behind it being that usance interest does not partake the same character as other interests which arise from some debt claim.

The tribunal upheld that usance interest so paid in fact forms part of the purchase price as agreed between the contracting parties in their memorandum of understanding.

 
 

Source: Economic Times, July 3, 2002

Disclaimer

The contents of this hotline should not be construed as legal opinion. View detailed disclaimer.

This Hotline provides general information existing at the time of preparation. The Hotline is intended as a news update and Nishith Desai Associates neither assumes nor accepts any responsibility for any loss arising to any person acting or refraining from acting as a result of any material contained in this Hotline. It is recommended that professional advice be taken based on the specific facts and circumstances. This Hotline does not substitute the need to refer to the original pronouncements.

This is not a Spam mail. You have received this mail because you have either requested for it or someone must have suggested your name. Since India has no anti-spamming law, we refer to the US directive, which states that a mail cannot be considered Spam if it contains the sender's contact information, which this mail does. In case this mail doesn't concern you, please unsubscribe from mailing list.

NDA Connect

Connect with us at events, 
conferences and seminars.