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

AO took a reasonable stand that 25 kg written in WhatsApp chat was 25 lakh – ITAT

Assessing Officer had taken a reasonable stand that 25 kg written in WhatsApp chat/text message was 25 lakh - ITAT…

4 hours ago
  • Income Tax

Shareholders can’t be taxed for income from properties owned by the company – HC

Shareholders are only owners of the shares of the company therefore, income from properties earned by the company cannot be…

6 hours ago
  • Income Tax

Jurisdictional error in reassessment approval can’t be shielded by the law of limitation

When approval for reassessment was granted by unauthorised authority, such jurisdictional error cannot be shielded by the law of limitation…

9 hours ago
  • Income Tax

ITAT ought to remanded whole matter of bogus purchases instead of profit determination

ITAT on presumption of bogus purchases ought to have remanded case to AO to reconsider the whole matter instead of…

10 hours ago
  • Income Tax

Where proceedings u/s 153C barred by limitation, AO can’t invoke section 148 & 148A

Where proceedings u/s 153C are barred by limitation, AO can not reopen the case invoking section 148 and 148A of…

1 day ago
  • bankruptcy

Corporate guarantees executed by corporate debtor constitute “financial debt” under IBC

Corporate guarantees executed by the corporate debtor constitute “financial debt” under IBC and banks to be recognized as financial creditors…

1 day ago