Section 94B: Thin capitalization rules may impede operations of NBFCs, by Nidhi Bothra & Kanishka Jain, 24th May, 2017
Genesis of the thin capitalization rules The genesis of the thin capitalization rules lies in the distinction between tax treatment of debt and equity. A company typically finances its projects either through equity and debt or mixture of both, equity being costly in terms of cost and ownership is less attractive than the debt financing […]