Exemption from WithhoLding Tax
Income Tax Act, 1961. Exemptions under Section HXI 5 Xiv)(b), (d) to (g) are granted by the Department of Economic Affairs while xemption under Section 10(115 Xiv(c) is granted by the Department of Revenue, Ministry of Finance. .
Approval Under FEMA
After receiving approval from the ECB Division, Department of Economic Affairs (DEA), Ministry of Finance, the applicant is required to btain approval from the RBI under the Foreign Exchange Management Act, and to submit an executed copy of the loan agreement to the EA for taking the same on record, before obtaining the clearance for drawing the loan from the. RBI. Monitoring of the end-use of ECBs ontinues to be done by the’ RBI. At present, ECB approvals under USD SO million (automatic route) is given by the RBI under all the ECB chemes except structured obligations. which .are at present being administered by the DEA. All other proposals are processed by the DEA.