Without prejudice to the answer to (i) above, if transfer pricing provisions are applicable and the Assessing Officer has made a primary adjustment…

Where the Assessing Officer has made a primary adjustment of 310lakhs to the transfer price and the same has been accepted by Laurus Labs Limited, secondary adjustment has to be made in the books of account as per section 92CE, since the primary adjustment made by the Assessing Officer and accepted by Laurus Labs Limited exceeds 100lakhs and the primary adjustment is in relation to P.Y.2022-23. The excess money determined based on the primary adjustment has to be repatriated to India within 90 days from the date of order, failing which the same would be deemed as an advance and interest would be attracted at the one-year marginal cost of fund lending rate of State Bank of India as on 1.4.2024 + 3.25%, since the international transaction has been denominated in Indian Rupees. In this case, since the excess money has not been repatriated within 90 days, the same would be deemed to be an advance made by Laurus Labs Limited to Meta Inc. and interest would be [email protected]% (9% + 3.25%) from 1.4.2024, being the date of the order of the Assessing Officer. The interest would amount to 37.975 lakhs (i.e., 12.25% of 310lakhs) for the P.Y.2024-25. Alternatively, Laurus Labs Limited can opt to pay additional [email protected]% (tax@18% plus surcharge@12% plus cess@4%) on 310 lakhs, which would amount to 65 lakhs. In such a case, secondary adjustment is not required to be made.