RBI seeks to make India Inc's foreign debt cheaper

NEW DELHI | MUMBAI: The Reserve Bank of India has suggested a uniform rate of withholding tax for overseas borrowings, irrespective of type and currency. If the government agrees, this could lower the cost of overseas borrowing for Indian companies. Simplifying the levy will improve the ability of Indian companies to raise money, given that funds are expected to flow back to the US as interest rates rise there, experts said. Interest paid to a non-resident on foreign currency borrowing or debt is currently subject to 5-20% withholding tax, with...
15 Published By - The Economic Times - 2017.01.11. 18:59
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