The choice of security to be provided to the lenders/suppliers will also be left to the borrowers. However,
where the security is in the form of a guarantee from an Indian Financial Institution or from an Indian
Scheduled Commercial Bank, Counter-guarantee or confirmation of the guarantee by a Foreign
Bank/Foreign Institution will not be permitted. EXEMPTION FROM WITHHOLDING TAX.
Interest @ payable by an industrial undertaking @ in India, related to external commercial borrowings as
approved by GOI/RBI would be eligible for tax.