Interest on trade receivables to be computed by applying LIBOR based rate

Signode India Limited Vs DCIT (ITAT Hyderabad) ITAT Hyderabad held LIBOR + 200 basis points is an appropriate rate of interest on outstanding trade receivables interest of bank short term deposit rate. Accordingly, TPO directed to compute interest on outstanding receivables by applying LIBOR + 200 basis points. Facts- The assessee company M/s. Signoda India is engaged in manufacturing of strap, stretch and protective packaging and packaging tools and equipment that are used to apply bulk packaging materials. The Assessing Officer after considering the submissions of the assessee company deter...