Thomas Inc. of Australia borrowed money from various companies in Australia for doing business in India by name ANS Co. Ltd., Mumbai. Thomas Inc. paid inter-est of ₹500 lakhs (converted) to various lenders. The amount of interest paid:
A. Has accrued in India
B. Is exempt from tax
C. Does not accrue in India
D. Is taxable in Australia
Answer:A
Thomas Inc. of Australia borrowed money from various companies in Australia for doing business in India by name ANS Co. Ltd., Mumbai. Thomas Inc. paid inter-est of ₹500 lakhs (converted) to various lenders. The amount of interest paid:
A. Has accrued in India B. Is exempt from tax C. Does not accrue in India D. Is taxable in Australia