allowable expenditure and if allowable then the amount allowable is as per
LIBOR or PLR. Hence all these were heard together and are being disposed ... debentures ("CCD")by following an ad-hoc approach of
using LIBOR rates thereby grossly erred in:
3.1. upholding the rejection of comparability analysis
invoices raised in INR and at
LIBOR + 450 bps for foreign-currency invoices, treating the rates as the
assessee's opportunity cost. Interest ... rate of interest being SBI PLR for invoice raised
in INR and LIBOR +450 BPS for invoice raised in foreign currency
External Commercial Borrowings
(ECB) and benchmarked the interest rate paid against LIBOR rate of
4.13% (being LIBOR + 350 basis points). (Refer page ... treating the CCDs as
ECBs and benchmarking the interest rate against LIBOR rate. It was
submitted that CCDs being a hybrid instrument, cannot be treated
separate international
transaction;
(c) Benchmarking the outstanding receivables against the 6
Month LIBOR plus 450 basis points i.e, at the effective rate ... Without prejudice, should interest be levied on the
delayed receivables, LIBOR should be applied as the
interest rate to compute the transfer pricing adjustment.
Further
adopting PLR the Arm's Length Price
Interest rate should be LIBOR.
19. On the other hand, the ld. DR has relied upon ... length rate has
been accepted by the Tribunal by considering LIBOR rate as the transaction is in
foreign currency. Therefore interest rate prevailing
2020 to 16/03/2021 Floating 31,93,19,997/-
LIBOR-6months + 490 bps per annum
Payable biannually
From 17/03/2021 ... Assessee was required to pay interest biannually at the rate of LIBOR-
6 months plus 490 bps. The loan was taken for general corporate
purposes
short term deposit rate
instead of foreign currency denominated rate i.e. LIBOR
rates.
The Appellant humbly prays that the TP Adjustment on
account ... interest on
receivables by benchmarking the transaction at 5.975% being 6
month LIBOR rate.
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IT(TP)A No. 294/Bang/2022
charge interest rate on the basis of LIBOR rate at 5.817% p.a.
10.Based on this, the final assessment order was passed ... most
appropriate method.
4. that the ld. DRP has directed that LIBOR+350 Basis Points
should be considered for computing notional interest on
outstanding receivables
receivables;
(ix) Without prejudice, the lower authorities have erred in not
adopting LIBOR as the basis for benchmarking.
(x) Assuming without admitting that the adjustment ... loan and computed
the arm's length interest adopting 6-month LIBOR plus 400 basis points at
4.3836%. TP Adjustment was computed
respect of
foreign currency loan in the international market, is to be LIBOR based
which is internationally recognized and adopted. It was argued that ... Monitoring
Authority in India being the Reserve Bank of India has specified LIBOR/
EURO UBOR/EURIBOR to be considered for the computation of interest
rate
