Transfer Pricing Adjustment: LIBOR Rate Plus Two Basis Points Preferred Over State Bank of India's 14.45% for Interest Rate.

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....TP Adjustment made on account of interest chargeable on outstanding receivables - applying LIBOR rates - adoption of SBI prime lending rate @14.45% is definitely excessive and is not in order. In our considered opinion, applying LIBOR rates plus two basis points would be a reasonable rate of interest which should be adopted for benchmarking the international transaction of interest on outstanding receivables. - AT....