Ruling on Corporate Guarantee & SBLC: Major Relief in Transfer Pricing

Nikhil6820 Jan, 2026Business

Ruling on Corporate Guarantee & SBLC: Major Relief in Transfer Pricing marks an important development for multinational groups. The ruling clarifies that corporate guarantees and SBLCs provided to associated enterprises involve limited risk and cannot be benchmarked at par with bank guarantees. It reinforces the need to assess real economic substance and actual benefits before making TP adjustments, thereby reducing unwarranted litigation. SKMC Global supports businesses through end-to-end transfer pricing advisory, robust benchmarking, documentation, and effective representation before tax authorities, helping mitigate risks and ensure compliance.