Number of Advance Pricing Agreements by CBDT crosses 100. APA Scheme was introduced in 2012 and Rollback provisions were introduced in 2014.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, 23rd September, 2016.
PRESS RELEASE
Sub: Number of Advance Pricing Agreements by CBDT crosses 100
The Central Board of Direct Taxes (CBDT) entered into five (5) unilateral Advance Pricing Agreements (APAs) today, i.e., 23 rd September, 2016, with Indian taxpayers. One of these Agreements has a rollback provision in it. With these signings, the total number of APAs entered into by the CBDT has reached 103.
The APA Scheme was introduced in the Income-tax Act in 2012 and the Rollback provisions were introduced in 2014. The 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 a maximum period of five future years. Further, the taxpayer has the option to rollback the APA for four preceding years. Since its inception, the APA scheme has attracted tremendous interest among Multi National Enterprises (MNEs) and more than 700 applications (both unilateral and bilateral) have been filed in just four years.
The 5 APAs signed today pertain to diverse sectors, i.e., Information Technology, Sourcing services and Investment advisory services. The 103 APAs signed so far include 4 bilateral APAs and 99 unilateral APAs. A total of 39 APAs have already been concluded in six months of the current Financial Year. The year-wise details of APA signings are as follows:
| Financial Year | 2013-14 | 2014-15 | 2015-16 | 2016-17 (Up to 23-09-2016) |
|
| Unilateral APAs | 5 | 3 | 53 | 38 | 99 |
| Bilateral APAs | 0 | 1 | 2 | 1 | 4 |
| Total | 5 | 4 | 55 | 39 | 103 |
The CBDT expects more APAs to be concluded and signed in the near future. The progress of the APA Scheme strengthens the Government’s commitment to foster a non adversarial tax regime. The approach and functioning of the officers in the APA teams have been appreciated and acknowledged by the industry in India and abroad.
(Meenakshi J Goswami)
Commissioner of Income-tax
(Media and Technical Policy)
Official Spokesperson, CBDT.
It can never be the object of assessment proceedings to find an empirically, absolutely correct solution on every fact issue…
Penalty u/s 270A deleted as assesse filed revised computation during scrutiny correcting the mistake which was noticed only after the…
Penalty u/s 271B for unfilled column 40 in Form 3CD related to details regarding turnover, gross profit etc. for previous…
Merely rectifying computation without amending assessment order without notice to assessee does not nullify the entire assessment - ITAT In…
Once assessee discharges primary onus of providing basic documents in support of the identity, genuineness and the creditworthiness it shifts…
CBDT has notified Cost Inflation Index for Financial Year / Tax Year 2026-27 CBDT has notified "384" as Cost Inflation…