https://www.taxtmi.com/caselaws?id=764941 ITAT Bengaluru held that outstanding receivables from associated enterprises exceeding agreed payment terms constitute a separate international transaction requiring independent benchmarking, as it amounts to providing interest-free financing. The tribunal ruled that extended credit beyond contractual terms cannot be subsumed within normal sales/services transactions. While affirming the transfer pricing officer's approach to benchmark this transaction, ITAT directed application of LIBOR rate instead of SBI prime lending rate for foreign currency invoices, with appropriate markup based on risk factors to be determined after verification. The assessee's appeal was allowed for statistical purposes. en-us Thu, 05 Dec 2024 00:00:00 +0530 Mon, 20 Jan 2025 17:32:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764941 ITAT Bengaluru held that outstanding receivables from associated enterprises exceeding agreed payment terms constitute a separate international transaction requiring independent benchmarking, as it amounts to providing interest-free financing. The tribunal ruled that extended credit beyond contractual terms cannot be subsumed within normal sales/services transactions. While affirming the transfer pricing officer's approach to benchmark this transaction, ITAT directed application of LIBOR rate instead of SBI prime lending rate for foreign currency invoices, with appropriate markup based on risk factors to be determined after verification. The assessee's appeal was allowed for statistical purposes. Case-Laws Income Tax Thu, 05 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764941