being
labor + 700 basis points, as against the rate of LIBOR +200 bps charged by the
appellant.
3.1 That the Commissioner of Income Tax (Appeals ... loan from financial institutions, viz., SBI,
at the rate of 3 months LIBOR + 170 basis points and from ICICI at 3 months LIBOR
+ 140 basis
submitted
that the assessee had provided loan to its AEs at LIBOR +1.1% to
Dabur UK and at 7% to Dabur Thailand. It was submitted ... been mentioned that the same loan could have
been taken at LIBOR +1.5% in the absence of corporate
guarantee and, thus, Dabur
taken at an interest rate of London Inter-Bank Offer Rate
("LIBOR") plus 2 percent per annum payable annually. As a result ... interest rate was changed
to a fixed rate of 6.18% (being Libor USD Swap rate +350 bps) for succeeding
five years. The said loan from
basis of appellant's corporate guarantee at
interest rate of LIBOR plus 0.5% was available without corporate
guarantee at a rate of LIBOR Plus ... loan facility was
available to the overseas AE at a rate of LIBOR Plus 1.5% without
corporate guarantee versus LIBOR plus 0.5% with corporate
guarantee
much lower than the 250 to 500
3
basis points above the LIBOR having been to be generally
applicable rates. For instance, in the cases ... comparable cases were taken as 150 basis points above
LIBOR and in the range of 140-170 basis points above LIBOR. In
contrast to this
days against the export realization. Alternatively, the
assessee also requested to apply LIBOR instead of SBI PLR rate ... prevalent borrowing rates in those
countries, which is LIBOR. It was further submitted that
comparing Indian interest rates for the purpose of benchmarking
of lending
days and actual date of collection and collection of
interest @ average monthly LIBOR plus 300 bps assuming 30
days to be the allowable credit facility ... which no interest was charged by the
assessee. The TPO applied interest @ LIBOR + 300 bps on all
the delays in recoveries beyond 30 days
rate 9% from third AE's on the basis of LIBOR plus mark-up of 0.2% to 0.3%. The
prevalent LIBOR rate during ... based on the currency, in which the loan transaction takes place and LIBOR
plus 100 to 300 points have been held
considering the SBI base rate instead of
London Interbank Offered Rate ("LIBOR") while calculating
notional interest on alleged delays in realization of payment ... during the year and not on the gross outstanding
receivables and appropriate LIBOR rate of interest should be applied.
The written submission filed
interest rate in respect of loan advanced to
foreign A.E., LIBOR/EURIBOR should be taken as benchmark. The Ld. AR
12 ITA Nos. 6042 ... repaid
(PLR is not relevant for foreign currency loans and LIBOR/ EURIBOR only can
be considered for benchmarking the same):
i. CIT vs Cotton Naturals
