ITAT Directs 6% SBI Rate on Delayed Payments in International Transactions

Clinasia Labs Private Limited Vs ITO (ITAT Hyderabad) Interest on delayed outstanding payments is an international transaction; ITAT directs AO/TPO to  to compute  interest @6% of  SBI rate. The case of Clinasia Labs Private Limited vs ITO presented before the Income Tax Appellate Tribunal (ITAT) Hyderabad delves into the intricacies of transfer pricing, specifically focusing on the classification of interest on delayed outstanding payments as an international transaction. The Tribunal’s decision to benchmark this interest at 6% of the State Bank of India (SBI) rate rather than the in...