Answer: To define transfer pricing methodology
Notes: An Advance Pricing Agreement (APA) is a crucial tool for multinational enterprises, as it provides certainty regarding transfer pricing methodologies for cross-border transactions. Established by the Finance Act of 2012, APAs can be bilateral, unilateral, or multilateral. Bilateral APAs involve cooperation between two tax authorities, while unilateral APAs involve only the taxpayer and their domestic tax authority, ensuring compliance and reducing disputes.
This Question is Also Available in:
हिन्दी