proposing to make adjustment on account of interest on the loans
using LIBOR rate of 4.16% in respect of the Mauritius loan ... assessment years, the
assessee himself has accepted ALP adjustment by adopting the LIBOR + 2%
interest rate. In this view of the matter, no interference
holding that the interest charged by the Appellant at the rate of
LIBOR + 2.9% per annum in respect of loan of USD 71.5 million given ... holding that the arm's length price of the loan was LIBOR + 3.32% p.a.
(10). The AO / TPO / DRP erred in not following
been held
that if the loan is made in foreign currency then LIBOR (not domestic lending rates) should
be used as a benchmark:
Delhi High ... loans given to AE should be benchmarked at then relevant currency
denominated LIBOR rate, for which it placed reliance on several judgments including the
jurisdictional
Commercial Borrowing (ECBs) and the range of rates of interest vary
between LIBOR plus 100 bps to 200 bps. The European Central Bank has recommended ... ECBs. Foreign Currency Loans are given by Banks globally bearing LIBOR based
Rate. The average of the LIBOR based Rate for the period from
been charged by the ICICI
Bank from the assessee i.e. LIBOR plus 250 basis points
meaning thereby that assessee fully recovered the interest paid ... reached to a
conclusion that interest charged from the subsidiary i.e. LIBOR
plus 250 basis points is not an arm length price. Therefore
Dcit, New Delhi vs M/S. Ongc Videsh Ltd., New Delhi on 5 September, 2022
price of interest
income of the assessee at 12 Month average of LIBOR + 5% and additions were
deleted ... price of interest
income of the assessee at 12 Month average of LIBOR + 5% and additions were
deleted
advanced to the AEs and imputing interest at the rate
equal to LIBOR plus 400 basis points;
2.2. disregarding the intercompany pricing arrangement ... interest is to be imputed, instead of an ad-hoc
rate of LIBOR plus 400 basis points, the LIBOR rate alone
source.
Assessee submitted that it has charged interest linked to
LIBOR rates and generally LIBOR+ a certain percentage points
were considered as interest receivable ... 2012 dated 29.11.2003 for
assessment year 2007-2008 has accepted that LIBOR+ certain
percentage points as arms length and relied on the orders.
7. Learned
According to the ld. Authorised Representative, the ld. TPO had
considered the LIBOR rate of 0.95% and added such LIBOR rate to
2% interest applicable ... Interest rate. Contention of the ld. Authorised
Representative was that if the LIBOR rate of 0.95% was considered,
assessee's rate of interest
