https://www.taxtmi.com/caselaws?id=753027 The ITAT Hyderabad ruled that interest on outstanding receivables constitutes an international transaction requiring separate benchmarking, following the Bombay HC decision in CIT vs. Patni Computer Systems. The tribunal directed the AO to apply LIBOR+200 points as the interest rate for foreign currency receivables/advances, with a credit period of thirty days or as per agreement/invoice terms, whichever is longer. The DRP's earlier direction to use SBI short-term deposit rates was modified. The appeal was allowed in part with directions for re-computation of transfer pricing adjustments. en-us Tue, 21 May 2024 00:00:00 +0530 Wed, 22 May 2024 20:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=753027 The ITAT Hyderabad ruled that interest on outstanding receivables constitutes an international transaction requiring separate benchmarking, following the Bombay HC decision in CIT vs. Patni Computer Systems. The tribunal directed the AO to apply LIBOR+200 points as the interest rate for foreign currency receivables/advances, with a credit period of thirty days or as per agreement/invoice terms, whichever is longer. The DRP's earlier direction to use SBI short-term deposit rates was modified. The appeal was allowed in part with directions for re-computation of transfer pricing adjustments. Case-Laws Income Tax Tue, 21 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=753027