Held that Arm\u2019s length price of\u00a0 bank guarantee charged at rate of 1 Per Cent. is held to be justified. Optionally convertible loans to subsidiary without charging interest entitled to interest at commercial rate which was at Arm\u2019s length hence\u00a0 no transfer pricing adjustment on account of interest on loans is warranted.\u00a0\u00a0 Associated enterprises did not incur expenses on behalf of\u00a0 assessee hence no adjustment on transaction of\u00a0 reimbursement of expenses.\u00a0 (AY.2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 92C : Transfer pricing-Arm\u2019s length price-Avoidance of tax-International transaction-Corporate guarantee fees-Arm\u2019s length price of bank guarantee charged at rate of 1 Per Cent. is held to be justified-Optionally convertible loans to subsidiary without charging interest-Entitled to interest at commercial rate which was at Arm\u2019s length-No transfer pricing adjustment on account of interest on loans is warranted-Reimbursement of expenses-Associated enterprises did not incur expenses on behalf of assessee-No adjustment on transaction of reimbursement of expenses.[S.92CA]<\/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-51398","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dn0","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51398","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=51398"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51398\/revisions"}],"predecessor-version":[{"id":51399,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/51398\/revisions\/51399"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=51398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=51398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=51398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}