CBDT sings 11 unilateral Advance Pricing Agreements

The Central Board of Direct Taxes (CBDT) has signed 11 unilateral Advance Pricing Agreements (APAs).
With this CBDT has so far entered into 59 bilateral or unilateral APAs. 50 of these agreements have been signed in the current financial year i.e. 2016-17.
Key facts

• The Advance Pricing Agreement (APA) programme was introduced in India by the Finance Act, 2012.
• It seeks provide a predictable and non-adversarial tax regime and to reduce litigation in the Indian transfer pricing regime.
• The APAs cover a wide range of international transactions, including royalty, corporate guarantees, software development services, IT enabled services and trading.
• The agreements also pertain to different industrial sectors like media, telecom, automobiles, IT services, etc.
• Some of these APAs have rollback provisions and provide certainty to the taxpayers for 9 years with regard to the covered international transactions.
• Rollback provisions in APAs were introduced in the July 2014 Budget to provide certainty on the pricing of international transactions for 4 years (rollback years).

For more details: Advance Price Agreements

Month: Current Affairs - March, 2016