ITAT Kolkata Caps Corporate Guarantee Fee at 0.5% in transfer pricing case

Tega Industries Ltd Vs DCIT (ITAT Kolkata) In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Kolkata Bench, has provided partial relief to Tega Industries Ltd., modifying a significant transfer pricing adjustment related to corporate guarantee commission. The Tribunal affirmed that corporate guarantees extended to Associated Enterprises (AEs) indeed fall under the ambit of “international transactions” but capped the arm’s length guarantee fee at 0.5%, aligning with a string of judicial precedents. Tega Industries Ltd., a company specializing in wear-resistant lin...