Request-driven road restoration attracts reverse-charge GST, not governmental-function treatment or compensatory-damages status for business recipient...
Road restoration charges for commercial pipeline works are taxable Government services, with reverse charge liability and no public-function exemption...
Model-wise import cap monitoring cannot justify withholding used multifunction machines where all-India tracking is absent and full security is furnis...
ITAT addressed transfer pricing adjustment concerning interest rate on loan extended by assessee to associated enterprise in Dubai at 1-year LIBOR plus 2.5% totaling 3.8% annually. Primary legal issue involved determining appropriate benchmark interest rate - whether Indian prevailing rates should apply given lender's Indian residence, or USD lending rates considering Dubai borrower's location. ITAT relied on Cotton Nature India precedent establishing that loan repayment currency determines applicable rate of return. Since record lacked clarity regarding agreed repayment currency, ITAT directed assessee to furnish supporting documentation establishing repayment currency terms. Based on such evidence, Assessing Officer and Transfer Pricing Officer must reconsider appropriate interest computation methodology for arms length pricing determination.
ITAT addressed transfer pricing adjustment concerning interest rate on loan extended by assessee to associated enterprise in Dubai at 1-year LIBOR plus 2.5% totaling 3.8% annually. Primary legal issue involved determining appropriate benchmark interest rate - whether Indian prevailing rates should apply given lender's Indian residence, or USD lending rates considering Dubai borrower's location. ITAT relied on Cotton Nature India precedent establishing that loan repayment currency determines applicable rate of return. Since record lacked clarity regarding agreed repayment currency, ITAT directed assessee to furnish supporting documentation establishing repayment currency terms. Based on such evidence, Assessing Officer and Transfer Pricing Officer must reconsider appropriate interest computation methodology for arms length pricing determination.
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TaxTMI 
TaxTMI 
of 4918 
