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
made under
section 92CA(3) in which the learned TPO adopted 6.31% (LIBOR of 4.41
percent plus 1.9 percent) as the arm's length ... OFCD with the loan and thereby, determining ALP
Interest rate of 6.31 % @ LIBOR rate as applicable to loan granted to foreign
subsidiary. The 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
facts in directing to add appropriate spread on the LIBOR
rates as against using the average LIBOR rates itself for computing
notional interest on outstanding ... accordingly by taking note of facts, directed the AO to
adopt the LIBOR rates with an appropriate spread befitting the
credit standing
loan given by the
assessee to its sister concern as against the LIBOR rate and the third issue being
against the action of the Assessing ... submitted that the average of 12 months US $ denominated
LIBOR rate for the period 1.4.2005 to 31.3.2006 was 4.42% and consequently
no addition on account
interest on ECB paid by the comparables was linked to
Libor whereas the assessee's service of interest relates to
Euribor.
(b) The assessee ... effective interest rate on ECB
in the case of comparables was Libor plus 1.54% which
translates to 6.02%. In one of the comparables viz., Bharat
learned AO has erred in law and on facts by considering LIBOR plus 350
BPS (i.e., 5.40%) as against LIBOR rate.
9. Without prejudice ... learned AO has erred in law and on facts by considering LIBOR plus 350
BPS (i.e. 5.40%) as against LIBOR plus
learned AO has erred in law and on facts by considering LIBOR plus 350
BPS (i.e., 5.40%) as against LIBOR rate.
9. Without prejudice ... learned AO has erred in law and on facts by considering LIBOR plus 350
BPS (i.e. 5.40%) as against LIBOR plus
also in directing the Assessing Officer to charge interest only at
LIBOR (0.64%) by claiming to follow the decision of the Tribunal in
assessee ... case , the Assessing Officer was directed to charge
interest on OFCD at LIBOR. Since the issue is covered in favour of the
assessee
Lastly, the assessee
advanced loans to its AEs and charged interest at LIBOR and therefore, the same
should be applied to benchmark the transactions ... therefore require
benchmarking. The Tribunal applying interest rate of six months LIBOR +400 basis
point on receivables, upheld the transfer pricing adjustment of interest
