ITAT upheld characterization of outstanding dues beyond agreed ...

Intra-group receivables beyond credit period recharacterized as financing, interest adjustment upheld.

December 27, 2024

Case Laws Income Tax AT

ITAT upheld characterization of outstanding dues beyond agreed credit period as separate international transaction of providing finance, requiring separate benchmarking. Interest adjustment limited to financial year under consideration. RBI COVID-19 relaxations not applicable to relevant period. No recharacterization of transaction by TPO. Commercial expediency for delayed receivables not established. Netting of receivables/payables permitted if demonstrated. Lack of show cause notice not fatal. Working capital adjustment to be considered for removing interest adjustment. MAT book profit computation remitted for rectification. Directed to grant tax credits after verification.

View Source

← Previous Next →

ITAT upheld characterization of outstanding dues beyond agreed ...

Intra-group receivables beyond credit period recharacterized as financing, interest adjustment upheld.

December 27, 2024

Case Laws Income Tax AT

You may also like:

The ITAT Hyderabad addressed a Transfer Pricing (TP) Adjustment issue regarding interest on outstanding receivables, determining if it constitutes an international...

TP Adjustment - Impute interest on receivables - LIBOR + 200 basis point rate is most appropriate rate and hence, direct the AO/TPO to adopt LIBOR + 200 basis point for...

TP adjustment regarding interest on outstanding receivables - “interest on receivables” is an international transaction during the FY and the decisions rendered prior to...

Valuation - deduction of cash discount / interest on receivables - Invoices for sales on credit terms, interest for the credit period was in built in the credit price - SC

TP Adjustment - outstanding receivables having delay beyond 30 days - Since the receivables have been received within ordinary time period, it cannot be recharacterized...

Appellants challenged TP adjustments on interest on receivables and management fees paid for intra-group services. Regarding receivables, HC relied on precedents holding...

TP Adjustment - notional interest on outstanding receivables due from Associated Enterprises (AES) - assessee not charging any interest from its AEs - Treatment of...

TP Adjustment - intra group services - The assessee has failed to completely demonstrate the Arm’s Length Price of intra group services by satisfying need test, benefit...

TP adjustment for corporate guarantee commission at 0.50% on guaranteed amount directed. Interest on receivables beyond agreed credit period of 60-240 days for non-AEs...

Outstanding receivables from AEs exceeding agreed credit period constitutes separate international transaction of providing capital financing/lending receivables, not...

TP Adjustment - Interest on interest outstanding/interest receivable - The interest on a loan is a compensation received towards the utilisation of funds given by the...

Transfer pricing adjustment for software development and related support services - Comparables deselected due to functional dissimilarity. TPO directed to exclude...

Transitional Input tax credit - availment of accumulated CENVAT by filing declaration Form TRAN-1 beyond the period provided under CGST Rules - Rule 117 is directory in...

TP Adjustment - interest on delayed receivables - Assessee pleaded that the deferred receivables do not constitute a separate international transaction requiring...

Transfer Pricing (T.P) adjustments - notional interest on receivables from Associated Enterprises (A.E) - the credit period extend by the assessee to its AE is very...

Quick Updates: