Single format · FV08-D12-2

Tax, gross-up and FEMA clause bank, loan agreement with non-resident lender

A single format from the Tax on Cross-border Borrowing, Withholding, Treaty Rates, Thin Capitalisation and Transfer Pricing pack. ITA 2025 s.393(2), s.393(10) · FEMA Schedule I.

Length
3 pages
Blanks to fill
18
Files
Word and PDF
Law stated to
16 September 2026

What it covers

  1. 1Tax, gross-up and FEMA clause bank, loan agreement with non-resident lenderITA 2025 s.393(2), s.393(10) · FEMA Schedule I18 blanks

Read the opening

The first part of the format, as it downloads. Blanks are highlighted.

Clauses for insertion in an ECB / trade credit / inter-company loan agreement governed by [Indian / English] law. Settle with the client's counsel; adapt defined terms.

Clause [Clause number for tax gross-up] — Tax gross-up

  1. Payments free of tax. All payments by the Borrower under this Agreement shall be made without any deduction or withholding for or on account of Tax, unless a deduction or withholding is required by law.

  2. Gross-up. If a deduction or withholding of Indian Tax is required by law from any payment of interest, fees or other amounts (other than principal), the amount of that payment shall be increased so that, after the deduction or withholding, the Lender receives an amount equal to what it would have received had no deduction or withholding been required. The Borrower shall deduct at the lower of the rate under the Income-tax Act, 2025 and the rate under the applicable double taxation avoidance agreement, provided the Lender has complied with Clause [__(4)].

5 more paragraphs and tables follow in the full format.

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