Income Tax Guidance: Use LIBOR + 300 Basis Points for Interest on Delayed Receivables from Associated Enterprises.

Income Tax Guidance: Use LIBOR + 300 Basis Points for Interest on Delayed Receivables from Associated Enterprises. https://www.taxtmi.com/highlights?id=57185 Appropriate rate for benchmarking - receivables from AEs - it would be most appropriate if the LIBOR rate is applied as most appropriate rate of interest for imputing interest on delay in receivables from AE. In this case, the AO has imputed notional interest by adopting PLR as the base rate. Therefore, we are of the considered view the LIBOR + 300 basis point rate is most appropriate rate and hence, direct the AO/TPO to adopt LIBOR + 300 basis point for imputing interest on overdue receivable. - AT en-us Tue, 16 Mar 2021 12:21:48 +0530 Tue, 16 Mar 2021 12:21:48 +0530 TaxTMI RSS Generator Income Tax Guidance: Use LIBOR + 300 Basis Points for Interest on Delayed Receivables from Associated Enterprises. https://www.taxtmi.com/highlights?id=57185 Appropriate rate for benchmarking - receivables from AEs - it would be most appropriate if the LIBOR rate is applied as most appropriate rate of interest for imputing interest on delay in receivables from AE. In this case, the AO has imputed notional interest by adopting PLR as the base rate. Therefore, we are of the considered view the LIBOR + 300 basis point rate is most appropriate rate and hence, direct the AO/TPO to adopt LIBOR + 300 basis point for imputing interest on overdue receivable. - AT Highlights Income Tax Tue, 16 Mar 2021 12:21:48 +0530 https://www.taxtmi.com/highlights?id=57185