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TMI Blog2018 (9) TMI 1832X X X X Extracts X X X X X X X X Extracts X X X X ..... HAT:- As could be seen, the Transfer Pricing Officer has charged guarantee commission @ 2.25%. Whereas, the learned Commissioner (Appeals) relying upon the decision of Everest Kento Cylinders Ltd. [ 2015 (5) TMI 395 - BOMBAY HIGH COURT] has held that guarantee commission should be charged @ 0.5%. Since, the aforesaid decision of the learned Commissioner (Appeals) is in consonance with the view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Commissioner (Appeals) to apply the commission rate of 0.5% to the corporate guarantee provided to the Associated Enterprise (AE). 3. Brief facts are, the assessee, an Indian Company, is engaged in the business of software development, designing / data conversion services, purchase and marketing of hardware / software products and e services. For the assessment year under di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of international transaction as per section 92B of the Act. The Transfer Pricing Officer, however, did not find merit in the submissions of the assessee and held that providing corporate guarantee to the AEs is an international transaction as per section 92B of the Act. Having held so, the Transfer Pricing Officer ultimately charged guarantee commission of 2.25% which resulted in addition of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). 6. We have considered rival submissions and perused materials on record. At the outset, we must observe, whether provision of corporate guarantee comes within the ambit of international transaction as defined under section 92B of the Act has not been disputed by the assessee before us. Therefore, the only dispute at this stage is confined to the rate of guarantee commission to be c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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