CBDT signs 4 new Advance Pricing Agreements
The Central Board of Direct Taxes (CBDT) has signed four new Advance Pricing Agreements (APAs). These APAs are in sectors like banking, telecom, manufacturing and education. Now CBDT has entered into a total of 175 APAs, out of which 162 unilateral APAs and 13 bilateral APAs. Out of recent four APAs, one was bilateral and three were unilateral. The bilateral APA was for international transactions between an Indian company and UK-based company. The APA provisions were introduced in Income Tax Act in 2012 and rollback provision was introduced in 2014. The Objective of APA scheme of CBDT is to provide certainty to taxpayers in domain of transfer pricing by specifying methods of pricing and setting prices of international transactions in advance. The APA scheme’s objective is to strengthen government`s resolve of fostering non-adversarial tax regime.