dues to
Vinca under the Debenture Guarantee Deeds, the Defendant has, inter alia
vide the Corporate Guarantee Deed, dated 9th December, 2009, issued an
unconditional ... payment, as a result of which the Corporate
Guarantee was invoked. The said Corporate Guarantee is unconditional and
not a word has been stated against
India)
17.03.2012
10.5.12
CORPORATE GUARANTEE CONTRACT
GPL-DF (Spain) 17.03.2012 ..... .... Arbitration Clause - Cl.8
Corporate Guarantee
21. On behalf of GPL, it was repeatedly urged ... arbitration clause of the
Corporate Guarantee i.e. clause (8) reads as under:
"8. This Corporate Guarantee shall be governed by the Indian Laws
make any inter-corporate investment if there is a default in repayment of deposits or interest thereon. Restrictions on Inter corporate Investment will also ... enterprises and for subscribing to right shares; (e) in case of corporate guarantee, the companies would be permitted to obtain ex-post-facto approval
account of Transfer Pricing adjustment towards
Corporate Guarantee fee. NCC Ltd, the parent provided Corporate
Guarantee to the bankers of the overseas subsidiary companies.
These ... Corporate Guarantee is not a service. Without prejudice to
the said contention, it is submitted that only Corporate Guarantee is
given by the assessee, which
charged on the
optionally convertible loan granted to the AEs.
(ii) Corporate guarantee charges: Rs 4,19,22,177
17. The next
Counsel for the
assessee submitted that the issue of appropriate guarantee fee on
corporate guarantee given by the assessee to AEs in USA had come ... guarantee is not in the nature of bank guarantee, the rate
applicable to bank guarantee provided by the bank cannot be
applied to corporate guarantee
points, solely due to corporate guarantee
given by the tax payer, the ALP of the fee for the corporate guarantee
was determined ... corporate guarantee charges at 0.7%
on which assessee has not preferred any appeal. It was further
contended that the issue of corporate guarantee provided
Officer, it was noticed that the assessee company has extended
a corporate guarantee in respect of loan of Rs 101.48 crores taken by its
subsidiary ... strength of the guarantee are not
treated quasi equity, the act of providing a service to the AE by offering corporate
guarantee also does
equated to bank guarantee
and resultantly the commission rate for bank guarantee cannot be applied to
the corporate guarantee. It was submitted that the corporate ... guarantee is not
in the nature of bank guarantee, the rate applicable to bank guarantee provided by
the bank cannot be applied to corporate guarantee
amount computed is confirmed,
(c) Guarantee fees- TPO made the adjustment on
account of commission in respect of corporate guarantee
provided by the appellant ... that
it has not charged any guarantee fees to its AE. It was also contended that
providing corporate guarantee
