1. Interest expenses claimed by any entity to its associates enterprises restricted to 30% of its EBITDA or interest paid or payable to associates enterprises whichever is less

2.Applicable to Indian Company or Permanent establishment of a foreign Company in India(Borrower)

3. Debt issued to Non Resident or to a permanent establishment of a non-resident and who is associated enterprises. (includes guarantee also)

4. Allow to carry forward of disallowed interest expenses for eight assessment years immediately succeeding the assessment year for which the disallowance was first made.

5. Maximum allowance in subsequent years is to extent of maximum allowable interest expenditure in that particular year.

6. Exclude Banks and insurance business.