CBDT inks 9 Advance Pricing Agreements
The Central Board of Direct Taxes (CBDT) has entered into 9 Unilateral Advance Pricing Agreements (UAPAs) with Indian taxpayers in July, 2017. With this, total number of APAs signed till date stands at 171 (Bilateral-12 and Unilateral-159).
The nine APAs signed pertain to diverse sectors of the economy including Oil & Gas exploration, education, banking, pharmaceutical, manufacturing and IT. They also cover international transactions and provision of software development services, ITES , engineering design services, distribution, contract manufacturing, etc.
About Advance Pricing Agreements (APA)
The APA Scheme was introduced in the Income-tax (IT) Act. It 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. It aims to strengthen the Government’s commitment to foster a non-adversarial tax regime. Further, the taxpayer has the option to roll back the APA. The roll back provisions under the scheme were introduced in 2014. APA provides total of nine years of tax certainty including four year term of rollback.
About Central Board of Direct Taxes (CBDT)
CBDT is nodal policy-making body of the Income Tax (IT) department under the Union Finance Ministry. It is a statutory authority established under The Central Board of Revenue Act, 1963. It is supreme body in India for framing policies related to direct taxes. The composition of CBDT includes Chairman and six members.
Month: Current Affairs - July, 2017