Income Tax

CBDT signed two Unilateral APA with Indian taxpayers related to chip design software and IT software

CBDT signed two Unilateral APA with Indian taxpayers related to chip design/development of embedded software and IT software development sectors 

Central Board of Direct Taxes (CBDT) signs 2 Unilateral Advance Pricing Agreements (APA) with Indian taxpayers taking the number of APAs signed in the current Financial Year to four

The progress of the APA Scheme strengthens the Government’s commitment to foster a non-adversarial tax regime

The Central Board of Direct Taxes (CBDT) has entered into two Unilateral Advance Pricing Agreements (APA) on 04th May, 2017 and 11th May, 2017 respectively, with Indian taxpayers. One of the Agreements also has “Rollback” provision.

The two APAs signed pertain to chip design/development of embedded software and Information technology (software development) sectors of the economy. The number of APAs signed in the current financial year now is four. The CBDT expects more APAs to be signed in the near future. The progress of the APA Scheme strengthens the Government’s commitment to foster a non-adversarial tax regime.

The APA Scheme endeavours to provide certainty to taxpayers in the domain of transfer pricing by specifying the methods of pricing and determining the arm’s length price of international transactions in advance for the maximum of five future years. Further, the taxpayer has the option to roll-back the APA for four preceding years, as a result of which, total nine years of tax certainty is provided. Since its inception, the APA scheme has attracted tremendous interest among Multi National Enterprises (MNEs).

****
Share

Recent Posts

  • Income Tax

Payment of imprest whether a transfer within the meaning of section 269ST

Payment of imprest whether a transfer within the meaning of section 269ST – case remanded for determination In a recent…

2 days ago
  • ICAI

CA Misconduct – Order quashed as judgment not passed by same members who heard arguments.

CA Misconduct – Appellate order quashed as final judgment was not passed by same members who heard arguments. In a…

4 days ago
  • Insurance

Deceased homemaker can not be considered as dependant for award of compensation under MV Act – SC

Deceased homemaker can not be considered as dependant for award of compensation under MV Act. Courts to award a composite…

4 days ago
  • Income Tax

CIT notice u/s 263 quashed as AO rightly took DVO value of property as actual sale price

CIT Revision notice u/s 263 quashed as the Assessing Officer rightly taken DVO value of property sold as actual sale…

6 days ago
  • GST

Extension of timeline for implementation of Ship To GSTIN & Voluntary Closure of E-Way Bill functionalities

Extension of timeline for implementation of mandatory "Ship To GSTIN" and Voluntary Closure of E-Way Bill functionalities GSTN Advisory dated…

6 days ago
  • Income Tax

No protective addition required when additions is confirmed in hands of searched person – ITAT

No protective addition required in the hand of a third party when additions have been confirmed in the hands of…

7 days ago