NEW DELHI, Sept. 21 (Xinhua) -- The Indian government Friday reduced tax on overseas borrowings by domestic companies to 5 percent from 20 percent, applicable from July 2012 to June 2015, said Finance Minister P. Chidambaram.
This lower rate of taxation will also apply to interest paid to a non-resident by an Indian company for money borrowed in foreign currency from a source outside India, either under a loan agreement or by way of long-term infrastructure bonds, according to the minister.
The Indian government is producing a series of policies aimed at stimulating economic growth amid sliding growth rate, including opening the country's retail and aviation market to overseas investment.
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