Taxability of interest remitted by branches of banks to the head office situated abroad, under the Foreign Currency Packing Credit Scheme of Reserve Bank of India
Circular : No. 740, dated 17-4-1996.
1. The Reserve Bank of India has introduced a Foreign Currency Packing Credit Scheme (FCPCS) for Indian exporters. Under this scheme, the Authorised Dealers in India can arrange for lines of credit from abroad for providing preshipment credit to Indian exporters at internationally competitive rates of interest. Such credit can also be arranged by Indian branches of foreign banks from their head offices or any other branch abroad.