https://www.taxtmi.com/caselaws?id=363182 The HC upheld the Tribunal's order applying LIBOR rates to compute interest on delayed payments to AEs, finding that extending credit beyond the normal 60-day period effectively constitutes a loan to the AE. Since the respondent did not charge interest on delayed payments from either AEs or non-AEs, the court held that the cost of funds approach is appropriate. The ruling affirmed that when the cost of local funds is lower than interest payable elsewhere, the enterprise would secure local loans to meet payment obligations timely. The Tribunal's use of LIBOR as the benchmark rate was consistent with established precedent and was not erroneous under the facts of the case. en-us Tue, 03 Jul 2018 00:00:00 +0530 Thu, 31 Jul 2025 11:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=363182 The HC upheld the Tribunal's order applying LIBOR rates to compute interest on delayed payments to AEs, finding that extending credit beyond the normal 60-day period effectively constitutes a loan to the AE. Since the respondent did not charge interest on delayed payments from either AEs or non-AEs, the court held that the cost of funds approach is appropriate. The ruling affirmed that when the cost of local funds is lower than interest payable elsewhere, the enterprise would secure local loans to meet payment obligations timely. The Tribunal's use of LIBOR as the benchmark rate was consistent with established precedent and was not erroneous under the facts of the case. Case-Laws Income Tax Tue, 03 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=363182