Tribunal held that when the assessee is covered under Tonnage taxation scheme . As regards interest on purchase of two ships, no application of\u00a0 transfer pricing provisions to income covered under tonnage tax scheme. Tribunal held that\u00a0 as regards guarantee commission, the\u00a0 Assessing Officer is directed to make adjustment by\u00a0 applying 0.25 Per Cent. to transaction instead of 0.5 Per Cent. As regards advance to share application money\u00a0 as the shares were not allotted and full money refunded the said amount was treated as\u00a0 loan and rate of\u00a0 interest to be applied on amount at Libor. As regards service agreement ,interest to be confined up to end of\u00a0 year and not thereafter. ( AY.2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92C : Transfer pricing \u2013 Arm\u2019s length price -Shipping business- Tonnage taxation scheme \u2013 Interest on purchase of two ships- No application of transfer pricing provisions to income covered under tonnage tax scheme \u2013 Guarantee commission- Assessing Officer is directed to make adjustment by applying 0.25 Per Cent. To Transaction Instead of 0.5 Per Cent- Advance to share application money \u2013 Shares not allotted -Full money refunded- loan – Rate of interest to be applied on amount at Libor- Service agreement \u2013 Interest to be confined up to end of year and not thereafter.<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13940","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3CQ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=13940"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13940\/revisions"}],"predecessor-version":[{"id":13941,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13940\/revisions\/13941"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=13940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=13940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=13940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}