{"id":1213,"date":"2017-02-15T18:22:03","date_gmt":"2017-02-15T12:52:03","guid":{"rendered":"https:\/\/www.propstack.com\/news\/?p=1213"},"modified":"2017-02-15T18:22:03","modified_gmt":"2017-02-15T12:52:03","slug":"realty-infra-cos-face-higher-tax-outgo-under-new-rule","status":"publish","type":"post","link":"https:\/\/www.propstack.com\/news\/realty-infra-cos-face-higher-tax-outgo-under-new-rule\/","title":{"rendered":"Realty, infra cos face higher tax outgo under new rule"},"content":{"rendered":"<p>Real estate and infrastructure companies, already struggling with thin profit margins, could see a substantial fall in profits and a significant rise in tax liability next year due to the `thin capitalisation&#8217; concept unveiled in the Union Budget for 2017-18.<\/p>\n<p>The new rule will not allow companies to claim tax deduction for interest paid on foreign debt above 30% of their EBITDA (earnings before interest, tax, depreciation and amortisation).<\/p>\n<p>Experts say the most hit would be real estate and infrastructure companies that have large chunk of international debt at project level or in their special purpose vehicles (SPVs).<\/p>\n<p>The government is expected to categorise investments through non-convertible debentures (NCDs) and the dividend paid on that also as debt.<\/p>\n<p>&nbsp;<\/p>\n<p>Read more:\u00a0<a href=\"http:\/\/realty.economictimes.indiatimes.com\/news\/industry\/realty-infra-cos-face-higher-tax-outgo-under-new-rule\/57031481\" target=\"_blank\">ETRealty<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Real estate and infrastructure companies, already struggling with thin profit margins, could see a substantial fall in profits and a significant rise in tax liability next year due to the `thin capitalisation&#8217; concept unveiled in the Union Budget for 2017-18. The new rule will not allow companies to claim tax deduction for interest paid on\u2026 <span class=\"read-more\"><a href=\"https:\/\/www.propstack.com\/news\/realty-infra-cos-face-higher-tax-outgo-under-new-rule\/\">Read More &raquo;<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[],"class_list":["post-1213","post","type-post","status-publish","format-standard","hentry","category-policy"],"_links":{"self":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts\/1213","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/comments?post=1213"}],"version-history":[{"count":1,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts\/1213\/revisions"}],"predecessor-version":[{"id":1214,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/posts\/1213\/revisions\/1214"}],"wp:attachment":[{"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/media?parent=1213"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/categories?post=1213"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.propstack.com\/news\/wp-json\/wp\/v2\/tags?post=1213"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}