Indian banks are charging interest rate of 2.5% to 5% above
LIBOR/EURIBOR for foreign currency loans" and, therefore ... view that interest rate of 4% above LIBOR would be reasonable for the loans of
BB rating for a period of five years
Indian banks are charging interest rate of 2.5% to
5% above LIBOR/EURIBOR for foreign currency loans" and, therefore ... view that interest rate of 4% above LIBOR would be reasonable
for the loans of BB rating for a period of five years
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
does not exceed the rate of interest London Inter-Bank Offered Rate (LIBOR) + 100 basis points and (iii) the documents covering the shipment are routed
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
Interest (Rs. In
Crs.)
1. M/s. Sundari LLC, USA Working Capital LIBOR + 150 bps/6% 1.65
2. M/s. MME, UAE Working Capital ... capital loan in AY.2004-05 of US$2.15million from HSBC
@LIBOR + 150 basis points(BPS),that during AY 2005-06 the rate
annum. As per the TPO, the rate prevailing as per
LIBOR +, for the year ending 31.03.2008 was 6.79%. The TPO tabulated
the transactions of granting ... ending 31.03.2008 per the financials)
[B] Base charge adopted by the assessee LIBOR
[C] Base charge adopted by the assessee However, rate charged
to benchmark
account of reimbursements) by
determining the interest rate @ 6 month Libor plus
4.75% on loans & advances given by the Appellant ... ought to have considered only LIBOR as the
maximum rate of interest on the loans & advances given
by the Appellant
Addition on account of Interest on Loan to Associate enterprise (AE) at
LIBOR+2%:
7. The contention of the assessee is that ... given to associate enterprise (AE) by adopting 6 Months bench marking at
LIBOR +200 basis points ( LIBOR +2%). The assessee also stated before us that
Addition on account of Interest on Loan to Associate enterprise (AE) at
LIBOR+2%:
7. The contention of the assessee is that ... given to associate enterprise (AE) by adopting 6 Months bench marking at
LIBOR +200 basis points ( LIBOR +2%). The assessee also stated before us that
