India Notification on Withholding Tax Exemption on Certain Payments to IFSC Units

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:

1. Banking Unit:
   • Interest income on External Commercial Borrowings /Loans
   • Professional fees
   • Referral fees
   • Brokerage income
   • Commission income on factoring and forfaiting services
2. IF…