India's Central Board of Direct Taxes (CBDT) issued Notification No. 28/2024 on 7 March 2024, which provides rules for a withholding tax exemption on certain payments to a "Unit" of an International Financial Services Centre (IFSC). The type of units and payments that can be exempted from withholding include:
- Banking Unit:
- Interest income on External Commercial Borrowings /Loans
- Professional fees
- Referral fees
- Brokerage income
- Commission income on factoring and forfaiting services
- IF…