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CBDT signs 2 more APAs with taxpayers in September

To reduce litigation by providing certainty in transfer pricing

Press Trust of India  |  New Delhi 

CBDT signs 2 more APAs with taxpayers in September

The Central Board of Direct Taxes (CBDT) today said it has signed two more advance pricing agreements (APAs) in September with Indian as it looks to reduce litigation by providing certainty in transfer pricing.

The two signed during September, 2017 pertain to automobile and healthcare consulting sectors.

"With the signing of these two agreements, the total number of entered into by till date has reached 177. This includes 164 unilateral and 13 bilateral

"In the current financial year, a total of 25 (2 bilateral and 23 unilateral) have been signed till date," the said in a statement.

The statement said international transactions covered in these two include the provision of IT-enabled services, provision of software development services and provision of engineering design services.

It pointed out that scheme endeavours to provide certainty to 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.

Noting that since its inception, the scheme has attracted tremendous interest among multi-national enterprises (MNEs), the statement said, "The progress of the scheme strengthens the government's commitment to fostering a non-adversarial tax regime.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, October 06 2017. 22:17 IST