Procedure for granting exemption u/s 10(15)(iv)(c).

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..... untry in respect of the purchase outside India of raw materials or components or capital plant and machinery, to the extent to which such interest does not exceed the amount of the interest calculated at the rate approved by the Central Government in this behalf, having regard to the terms of the loan or debt and its repayment. The purpose of granting this exemption from income-tax is to enable th .....

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..... oned above has adversely commented upon by the Public Accounts Committee. They have opined that a procedure should be evolved under which the Ministry of Finance (Department of Revenue) should invariably be involved before the sanction order granting exemption from payment of income-tax u/s.10(15)(iv)(c) of the I.T. Act, 1961, is accorded. On reference the Attorney General has also expressed the v .....

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..... the Act, the procedure will be that the administrative ministry would process the application in consultation with the Department of Economic Affairs, and then refer only the question of such approval to the Foreign Tax Division of the Department of Revenue in the Ministry of Finance alongwith their recommendations in each case. 4. The above procedure will come into force w.e.f. 1st September, .....

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