CBDT celebrates 26 early price agreements during April to August
NEW DELHI: The Central Board of Direct Taxes ( CBDT ) has entered 26 advance pricing agreements ( APAs ) in the first five months of the current financial year, according to an official statement published on Wednesday.
The total number of APAs now stands at 297, which includes 32 bilateral APAs. Of these 26 APAs, one is a Bilateral APA with Britain and the remaining 25 are unilateral APAs.
The APAs pertain to various sectors and sub-sectors of the economy like information technology, banking, semiconductor, power, pharmaceutical, hydrocarbon, publishing, and automobiles.
International transactions covered by these agreements include contract manufacturing, the provision of software development services, the back-office engineering support service, the provision of back-office support services (ITeS), the provision of Marketing support services, payment of royalties for the use of technology and brand. , trade and distribution, payment of charter charges, corporate guarantee, intra-group services and interest on financial instruments.
The progress of the APA scheme strengthens the government's resolution to foster a non-contentious tax regime, the statement said. The APA program in India has been appreciated nationally and internationally for addressing complex transfer pricing issues in a fair and transparent manner, he added.