The Resource Case note : lender's fees not linked to loan are not interest income

Case note : lender's fees not linked to loan are not interest income

Label
Case note : lender's fees not linked to loan are not interest income
Title
Case note : lender's fees not linked to loan are not interest income
Creator
Subject
Language
eng
Summary
This case note sets out the ruling by the Authority for Advance Rulings in Societe de Promotion et de participation pour la cooperation economique that an appraisal front-end fee charged by the taxpayer to its client borrowers was not taxable in India as interest because it was not linked to the loan and not payable if the loan was not approved. However, all other fees (i.e. non-appraisal front-end fees, commitment fees, cancellation fees, monitoring fees and amendment fees) were taxable in India as interest income in terms of article 12(4) of the France-India Income and Capital Tax Treaty (1992) because they were payable only after the debt claim came into existence
Citation source
In: Asia-Pacific tax bulletin. - Amsterdam. - Vol. 24 (2018), no. 5 ; 3 p
http://library.link/vocab/creatorName
  • Dugar, A
  • Bhandari, L
Geographic coverage
Asia
Language note
English
http://library.link/vocab/subjectName
  • case law
  • advance ruling
  • loan
  • interest
  • fee
  • income classification
  • tax treaty
Label
Case note : lender's fees not linked to loan are not interest income
Instantiates
Publication
Label
Case note : lender's fees not linked to loan are not interest income
Publication

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